Welcome!

Enter a player name to begin or load your saved progress.

Credit Suisse Wiki2Web Clarity Challenge

Study Hints Create Teach
Global Score: 0
Trophies: 0 🏆

‹ Back

Score: 0 / 100

Study Guide: Credit Suisse: A Comprehensive Institutional History and Analysis

Cheat Sheet:
Credit Suisse: A Comprehensive Institutional History and Analysis Study Guide

Foundational Era and Early Development (1856-Early 20th Century)

Credit Suisse was founded in 1856 with the primary goal of funding Switzerland's rail system to prevent reliance on French financial institutions.

Answer: True

Explanation: Credit Suisse was established in 1856 with the explicit purpose of providing domestic capital for Switzerland's railway development, thereby mitigating dependence on foreign, particularly French, banks.

Return to Game

Alfred Escher, a key founder of Credit Suisse, was also known for his efforts in nationalizing Switzerland's railway system.

Answer: False

Explanation: Alfred Escher, a co-founder of Credit Suisse, was notably influential for his work in *privatizing* Switzerland's railway system, not nationalizing it.

Return to Game

The original name of Credit Suisse was 'Schweizerische Nationalbank'.

Answer: False

Explanation: Credit Suisse's original name was the Swiss Credit Institution, or 'Schweizerische Kreditanstalt'.

Return to Game

Credit Suisse's early contributions to Switzerland's economy included establishing its currency system and funding major infrastructure projects like the Gotthard railway.

Answer: True

Explanation: In its formative years, Credit Suisse played a pivotal role in Switzerland's economic development by contributing to the establishment of its currency system and financing significant infrastructure, such as the Gotthard railway.

Return to Game

Credit Suisse's first unprofitable year occurred in 1886, largely due to successful venture investments and a booming agricultural sector.

Answer: False

Explanation: Credit Suisse's first unprofitable year in 1886 was primarily attributed to losses in agriculture, venture investments, commodities, and over-speculative international trade, not successful ventures or a booming agricultural sector.

Return to Game

Credit Suisse expanded its customer base in the early 1900s by exclusively focusing on high-net-worth individuals and corporate clients.

Answer: False

Explanation: In the early 1900s, Credit Suisse broadened its customer base to include consumers and the middle class by introducing services such as deposit counters and savings accounts.

Return to Game

Credit Suisse was founded in 1856 with the primary objective of providing domestic funding for what purpose?

Answer: The development of Switzerland's rail system

Explanation: The foundational objective of Credit Suisse in 1856 was to secure domestic financing for the construction of Switzerland's railway system, aiming to avoid foreign financial dependence.

Return to Game

Which co-founder of Credit Suisse was notably influential for his work in privatizing Switzerland's railway system?

Answer: Alfred Escher

Explanation: Alfred Escher, a prominent co-founder of Credit Suisse, was particularly recognized for his significant contributions to the privatization of Switzerland's railway system.

Return to Game

Credit Suisse's main building, designed by Jakob Friedrich Wanner, was inaugurated in 1876 in which city?

Answer: Zurich

Explanation: The main building of Credit Suisse, designed by Jakob Friedrich Wanner, was inaugurated in Zurich in 1876, serving as its headquarters on Paradeplatz.

Return to Game

What was the original name of Credit Suisse?

Answer: Swiss Credit Institution

Explanation: The original name of Credit Suisse was the Swiss Credit Institution, known in German as 'Schweizerische Kreditanstalt'.

Return to Game

In its early history, Credit Suisse contributed to Switzerland's economic development by helping to establish its currency system and funding which type of projects?

Answer: Crucial infrastructure projects

Explanation: Credit Suisse significantly aided Switzerland's early economic growth by helping to establish its currency system and by investing in vital infrastructure projects, such as the Gotthard railway.

Return to Game

Credit Suisse recorded its first unprofitable year in 1886 due to losses in agriculture, venture investments, and what other primary factor?

Answer: Over-speculative investing in an export business

Explanation: Credit Suisse's first unprofitable year in 1886 was largely driven by losses in agriculture, venture investments, commodities, and substantial losses from over-speculative international trade, particularly in an export business.

Return to Game

In the early 1900s, Credit Suisse expanded its customer base by introducing services like deposit counters and savings accounts to which demographic?

Answer: Consumers and the middle class

Explanation: During the early 1900s, Credit Suisse broadened its client base to include consumers and the middle class by offering services such as deposit counters, currency exchanges, and savings accounts.

Return to Game

Global Expansion and Strategic Partnerships (Mid-20th Century - 1990s)

The 'Chiasso scandal' of the 1970s, involving illegal funneling of Italian deposits, resulted in the establishment of a new code of conduct for Swiss banks regarding due diligence.

Answer: True

Explanation: The 'Chiasso scandal' in the 1970s, which exposed illegal financial activities, directly led to the implementation of the 'Agreement on the Swiss Banks' Code of Conduct with Regard to the Exercise of Due Diligence'.

Return to Game

Credit Suisse's partnership with First Boston in 1978 involved acquiring a 44% stake in First Boston's US operations.

Answer: True

Explanation: In 1978, Credit Suisse formed a partnership with First Boston, which included acquiring a 44% stake in First Boston's US operations.

Return to Game

The 'burning bed' deal involved Credit Suisse injecting $725 million to save First Boston, an action that required the Federal Reserve to temporarily disregard the Glass-Steagall Act.

Answer: True

Explanation: The 'burning bed' deal saw Credit Suisse provide $725 million to prevent First Boston's collapse, an emergency measure that necessitated the Federal Reserve to temporarily set aside the Glass-Steagall Act to ensure financial market stability.

Return to Game

During the 1990s, Credit Suisse acquired Bank Leu, Swiss Volksbank, and Donaldson, Lufkin & Jenrette as part of its expansion strategy.

Answer: True

Explanation: Credit Suisse pursued an aggressive acquisition strategy in the 1990s, integrating institutions such as Bank Leu, Swiss Volksbank, and Donaldson, Lufkin & Jenrette.

Return to Game

In 1996, Credit Suisse restructured into three main divisions: domestic banking, private banking, and asset management.

Answer: False

Explanation: In 1996, Credit Suisse restructured into four divisions: Credit Suisse Volksbank (domestic banking), Credit Suisse Private Banking, Credit Suisse Asset Management, and Credit Suisse First Boston (corporate and investment banking).

Return to Game

Japan's Financial Supervisory Agency suspended Credit Suisse First Boston's license in 1999 due to its involvement in money laundering activities.

Answer: False

Explanation: Japan's Financial Supervisory Agency suspended Credit Suisse First Boston's license in 1999 due to 'window dressing,' a practice used to conceal client losses, not money laundering.

Return to Game

The 'Chiasso scandal' in the 1970s, involving illegal funneling of Italian deposits, directly led to the creation of what?

Answer: The 'Agreement on the Swiss Banks' Code of Conduct

Explanation: The 'Chiasso scandal' of the 1970s, a significant incident of illegal deposit funneling, directly prompted the establishment of the 'Agreement on the Swiss Banks' Code of Conduct with Regard to the Exercise of Due Diligence'.

Return to Game

In 1978, Credit Suisse established its partnership with First Boston by creating Credit Suisse First Boston in Europe and acquiring what percentage stake in First Boston's US operations?

Answer: 44 percent

Explanation: Credit Suisse initiated its partnership with First Boston in 1978 by forming Credit Suisse First Boston in Europe and acquiring a 44 percent stake in First Boston's US operations.

Return to Game

The 'burning bed' deal in 1989 involved Credit Suisse injecting how much money to rescue First Boston?

Answer: $725 million

Explanation: The 'burning bed' deal in 1989 saw Credit Suisse inject $725 million to avert the collapse of First Boston following a junk bond market downturn.

Return to Game

Which of the following institutions was acquired by Credit Suisse between 1990 and 2000?

Answer: Bank Leu

Explanation: As part of its aggressive expansion strategy between 1990 and 2000, Credit Suisse acquired several institutions, including Bank Leu, Switzerland's oldest bank.

Return to Game

In 1996, the Credit Suisse Group was restructured to comprise how many divisions?

Answer: Four

Explanation: The Credit Suisse Group underwent a restructuring in 1996, resulting in the formation of four distinct divisions: Credit Suisse Volksbank, Credit Suisse Private Banking, Credit Suisse Asset Management, and Credit Suisse First Boston.

Return to Game

Japan's Financial Supervisory Agency suspended Credit Suisse First Boston's license in 1999 primarily due to what practice?

Answer: 'Window dressing' to conceal client losses

Explanation: Japan's Financial Supervisory Agency temporarily suspended Credit Suisse First Boston's license in 1999 due to its engagement in 'window dressing,' a practice involving the sale of derivatives to help clients hide losses.

Return to Game

Escalating Scandals and Ultimate Demise (2015-2024)

The 'Suisse Secrets' leak in 2022 exposed details of 30,000 customer accounts, totaling over 100 billion Swiss francs, linked to illicit activities.

Answer: True

Explanation: The 'Suisse Secrets' leak in February 2022 revealed information on 30,000 customer accounts, holding over 100 billion Swiss francs, with connections to various illicit activities.

Return to Game

Credit Suisse's share price dropped significantly in March 2023 after its largest investor, Saudi National Bank, committed to providing substantial additional financial assistance.

Answer: False

Explanation: Credit Suisse's share price plummeted in March 2023 after its largest investor, Saudi National Bank, announced it *could not* provide additional financial assistance, triggering market concerns.

Return to Game

In March 2023, Credit Suisse secured a 50 billion Swiss franc loan from the Swiss National Bank to stabilize its financial situation.

Answer: True

Explanation: To address its financial instability in March 2023, Credit Suisse obtained an emergency loan of 50 billion Swiss francs from the Swiss National Bank.

Return to Game

UBS acquired Credit Suisse for US$3.25 billion in an all-cash transaction in March 2023.

Answer: False

Explanation: UBS acquired Credit Suisse for US$3.25 billion in an *all-stock* transaction, not an all-cash transaction, in March 2023.

Return to Game

Credit Suisse was officially declared defunct in May 2024.

Answer: True

Explanation: Credit Suisse's official cessation of existence was announced on May 31, 2024, with its full integration into UBS Switzerland anticipated by July 2024.

Return to Game

The UBS takeover of Credit Suisse was widely praised for significantly increasing banking competition in Switzerland.

Answer: False

Explanation: Economic analysts observed that the UBS acquisition of Credit Suisse resulted in a *reduction* of banking competition in Switzerland, particularly impacting options for small and medium-sized enterprises.

Return to Game

Credit Suisse maintained a reputation for strictly adhering to its 'white money' strategy, ensuring no assets from criminals or corrupt individuals were held.

Answer: False

Explanation: Despite its public 'white money' strategy, Credit Suisse's reputation was controversial due to investigations revealing it provided a safe haven for assets belonging to criminals, fraudsters, and corrupt politicians.

Return to Game

The 'Suisse Secrets' leak in February 2022 involved the disclosure of details for how many customers?

Answer: 30,000

Explanation: The 'Suisse Secrets' leak in February 2022 revealed confidential details pertaining to 30,000 Credit Suisse customer accounts.

Return to Game

What specific event caused a nearly 25 percent drop in Credit Suisse's share price on March 15, 2023?

Answer: Its largest investor, Saudi National Bank, announced it could not provide additional financial assistance.

Explanation: On March 15, 2023, Credit Suisse's share price experienced a nearly 25 percent decline following the announcement by its largest investor, Saudi National Bank, that it would not provide further financial support.

Return to Game

In March 2023, Credit Suisse took an emergency loan of 50 billion Swiss francs from which institution?

Answer: The Swiss National Bank (SNB)

Explanation: To address its critical financial situation in March 2023, Credit Suisse secured an emergency loan of 50 billion Swiss francs from the Swiss National Bank (SNB).

Return to Game

UBS acquired Credit Suisse in March 2023 for US$3.25 billion in what type of transaction?

Answer: An all-stock transaction

Explanation: UBS acquired Credit Suisse in March 2023 for US$3.25 billion through an all-stock transaction.

Return to Game

On what date was Credit Suisse officially announced to have ceased to exist?

Answer: May 31, 2024

Explanation: Credit Suisse was officially declared to have ceased its independent existence on May 31, 2024, with its full integration into UBS Switzerland projected for July 2024.

Return to Game

The UBS takeover of Credit Suisse was noted by economic analysts to have what impact on Switzerland's banking sector?

Answer: A lack of banking competition

Explanation: Economic analysts concluded that the UBS acquisition of Credit Suisse resulted in a reduction of banking competition within Switzerland, particularly affecting lending options for small and medium-sized enterprises.

Return to Game

Despite its 'white money' strategy, Credit Suisse's reputation was controversial due to investigations revealing it provided a safe haven for assets of which groups?

Answer: Criminals, fraudsters, and corrupt politicians

Explanation: Investigations revealed that Credit Suisse, despite its stated 'white money' policy, controversially provided a secure repository for assets belonging to criminals, fraudsters, and corrupt politicians over several decades.

Return to Game

Corporate Profile, Operations, and Financial Metrics

Credit Suisse Group AG was classified by the Financial Stability Board as a global systemically important bank prior to its acquisition.

Answer: True

Explanation: The Financial Stability Board recognized Credit Suisse Group AG as a global systemically important bank before its acquisition by UBS.

Return to Game

Credit Suisse, as a standalone firm, primarily focused on retail banking and did not offer investment banking services.

Answer: False

Explanation: As a standalone entity, Credit Suisse offered a broad range of services, including significant investment banking operations, alongside private banking, asset management, and shared services.

Return to Game

Credit Suisse was widely recognized for its commitment to strict bank-client confidentiality and banking secrecy.

Answer: True

Explanation: Credit Suisse was historically known for its stringent adherence to bank-client confidentiality and banking secrecy practices.

Return to Game

Credit Suisse's 'bancassurance' strategy involved separating its banking and insurance services into distinct, independent entities.

Answer: False

Explanation: Credit Suisse's 'bancassurance' strategy aimed to *combine* banking and insurance services into a single, comprehensive financial services entity, not separate them.

Return to Game

The CreditRisk+ model, developed by Credit Suisse, assesses loan risk by focusing solely on the probability of default using the exogenous Poisson method.

Answer: True

Explanation: The CreditRisk+ model, a proprietary tool by Credit Suisse, is designed to evaluate loan risk by exclusively analyzing the probability of default through the exogenous Poisson method.

Return to Game

Before its acquisition, Credit Suisse Group AG was recognized by the Financial Stability Board as what type of institution?

Answer: A global systemically important bank

Explanation: Prior to its acquisition, Credit Suisse Group AG was designated by the Financial Stability Board as a global systemically important bank, reflecting its critical role in the international financial system.

Return to Game

As a standalone firm, which of the following was a type of financial service offered by Credit Suisse?

Answer: Investment banking

Explanation: As an independent entity, Credit Suisse provided a range of financial services, including significant investment banking operations, alongside private banking and asset management.

Return to Game

Credit Suisse's 'bancassurance' strategy aimed to combine which two types of services into a single entity?

Answer: Banking and insurance

Explanation: Credit Suisse's 'bancassurance' strategy was designed to integrate banking and insurance services, offering a comprehensive suite of financial products from a single entity.

Return to Game

The CreditRisk+ model, developed by Credit Suisse, is a risk assessment tool for loans that focuses exclusively on what?

Answer: The probability of default

Explanation: Credit Suisse's CreditRisk+ model is a specialized risk assessment tool for loans that focuses exclusively on calculating the probability of default using the exogenous Poisson method.

Return to Game

By 2012, Credit Suisse was recognized by Euromoney's Global Private Banking Survey as what?

Answer: The world's best private bank

Explanation: By 2012, Credit Suisse achieved recognition as the world's best private bank, according to Euromoney's Global Private Banking Survey.

Return to Game