money Credit Suisse finds 'material weakness' in its financial reporting
Yahoo Finance Live’s Julie Hyman discusses Credit Suisse’s financial reporting.
Video Transcript
JULIE HYMAN: In the meantime, we've got to move to some other movers. And outside of the regional banks here in the US, we're watching Credit Suisse as well. The company has battled scandal for more than a year now. It feels like a lot-- feels like more than a year for sure.
The company now is coming out and making some new comments here. The company is saying it found material weakness in its financial reporting over the past two years because of what it said were ineffective internal controls. The company says it's been actually getting some decent inflows, but nonetheless, the internal controls of the company were not effective.
The management team at Credit Suisse entered in 2022, so it looks like this did not begin, at least, under their watch. But at the same time, the company says its financial statements fairly present in all material respects the group's consolidated financial condition.
JARED BLIKRE: Yeah, my only thing to add to that, when a company has to go to the length to disavow their own financial-control procedures, financial-reporting procedures and their controls, that's a big deal for them. And they're in the process of divesting, I believe, their American wealth unit, and so kind of a big restructuring there for a European bank.
And you want to look at a sector that has done very poorly until very recently, and the yield curve kind of explaining what's happened recently. But [? SX70 ?] over the last decade and a half has been the biggest time-suck money loser that I've seen in a while.
JULIE HYMAN: Yeah, well, interesting to see those shares of Credit Suisse not much changed today. They did fall yesterday.
