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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
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.
Alfred Escher, a key founder of Credit Suisse, was also known for his efforts in nationalizing Switzerland's railway system.
Answer: False
Alfred Escher, a co-founder of Credit Suisse, was notably influential for his work in *privatizing* Switzerland's railway system, not nationalizing it.
The original name of Credit Suisse was 'Schweizerische Nationalbank'.
Answer: False
Credit Suisse's original name was the Swiss Credit Institution, or 'Schweizerische Kreditanstalt'.
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
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.
Credit Suisse's first unprofitable year occurred in 1886, largely due to successful venture investments and a booming agricultural sector.
Answer: False
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.
Credit Suisse expanded its customer base in the early 1900s by exclusively focusing on high-net-worth individuals and corporate clients.
Answer: False
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.
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
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.
Which co-founder of Credit Suisse was notably influential for his work in privatizing Switzerland's railway system?
Answer: Alfred Escher
Alfred Escher, a prominent co-founder of Credit Suisse, was particularly recognized for his significant contributions to the privatization of Switzerland's railway system.
Credit Suisse's main building, designed by Jakob Friedrich Wanner, was inaugurated in 1876 in which city?
Answer: Zurich
The main building of Credit Suisse, designed by Jakob Friedrich Wanner, was inaugurated in Zurich in 1876, serving as its headquarters on Paradeplatz.
What was the original name of Credit Suisse?
Answer: Swiss Credit Institution
The original name of Credit Suisse was the Swiss Credit Institution, known in German as 'Schweizerische Kreditanstalt'.
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
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.
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
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.
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
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.
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
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'.
Credit Suisse's partnership with First Boston in 1978 involved acquiring a 44% stake in First Boston's US operations.
Answer: True
In 1978, Credit Suisse formed a partnership with First Boston, which included acquiring a 44% stake in First Boston's US operations.
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
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.
During the 1990s, Credit Suisse acquired Bank Leu, Swiss Volksbank, and Donaldson, Lufkin & Jenrette as part of its expansion strategy.
Answer: True
Credit Suisse pursued an aggressive acquisition strategy in the 1990s, integrating institutions such as Bank Leu, Swiss Volksbank, and Donaldson, Lufkin & Jenrette.
In 1996, Credit Suisse restructured into three main divisions: domestic banking, private banking, and asset management.
Answer: False
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).
Japan's Financial Supervisory Agency suspended Credit Suisse First Boston's license in 1999 due to its involvement in money laundering activities.
Answer: False
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.
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
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'.
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
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.
The 'burning bed' deal in 1989 involved Credit Suisse injecting how much money to rescue First Boston?
Answer: $725 million
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.
Which of the following institutions was acquired by Credit Suisse between 1990 and 2000?
Answer: Bank Leu
As part of its aggressive expansion strategy between 1990 and 2000, Credit Suisse acquired several institutions, including Bank Leu, Switzerland's oldest bank.
In 1996, the Credit Suisse Group was restructured to comprise how many divisions?
Answer: Four
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.
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
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.
The 'one bank' model, introduced in 2004, aimed to foster collaboration across Credit Suisse's divisions by including executives from all three main divisions on every board.
Answer: True
The 'one bank' model, implemented in 2004, was designed to enhance inter-divisional collaboration by ensuring representation from investment, private banking, and insurance divisions on every board.
Credit Suisse paid a $536 million settlement in 2006 for assisting sanctioned countries in concealing transactions from US authorities.
Answer: True
In 2006, Credit Suisse settled for $536 million, admitting to misconduct in helping sanctioned countries obscure financial transactions from US authorities.
Credit Suisse required significant government borrowing to survive the 2008 financial crisis.
Answer: False
Credit Suisse navigated the 2008 financial crisis without requiring government borrowing, a distinction from many of its competitors, despite experiencing significant write-downs.
Following the 2008 financial crisis, Credit Suisse significantly expanded its investment banking arm, increasing its assets by over one trillion.
Answer: False
After the 2008 financial crisis, Credit Suisse strategically reduced its investment banking arm by 37% and cut over one trillion in assets, shifting its focus towards private banking and wealth management.
In 2007, Credit Suisse traders were involved in a 'mismarking' controversy where they inflated securities values by $3 billion to increase their bonuses.
Answer: True
The 'mismarking' controversy in 2007 involved Credit Suisse traders artificially inflating securities positions by $3 billion to generate fictitious profits and boost their year-end bonuses.
Credit Suisse pleaded guilty in 2014 to aiding US citizens in tax fraud, resulting in a $2.6 billion fine.
Answer: True
In 2014, Credit Suisse admitted guilt to conspiring to assist US citizens in tax evasion, leading to a substantial fine of $2.6 billion.
The 'one bank' model implemented by Credit Suisse in 2004 aimed to encourage collaboration by including executives from which three divisions on every board?
Answer: Investment, private banking, and insurance
The 'one bank' model, introduced by Credit Suisse in 2004, sought to enhance collaboration by mandating the inclusion of executives from its investment, private banking, and insurance divisions on every board.
In 2006, Credit Suisse paid a $536 million settlement for helping which type of entities hide transactions from US authorities?
Answer: Sanctioned countries
Credit Suisse paid a $536 million settlement in 2006 for its role in assisting sanctioned countries in concealing financial transactions from US authorities.
What distinguished Credit Suisse's performance during the 2008 financial crisis compared to many competitors?
Answer: It did not require government borrowing.
Unlike many of its peers, Credit Suisse successfully navigated the 2008 financial crisis without recourse to government borrowing, despite incurring write-downs on subprime holdings and leveraged loans.
After the 2008 financial crisis, Credit Suisse initiated a strategic shift by reducing its investment banking arm and focusing more on what?
Answer: Private banking and wealth management
Following the 2008 financial crisis, Credit Suisse strategically reoriented its business, significantly scaling back its investment banking operations to prioritize private banking and wealth management services.
In the 2007 'mismarking' controversy, Credit Suisse traders artificially inflated securities values by $3 billion primarily to achieve what?
Answer: To boost their year-end bonuses
In the 2007 'mismarking' controversy, Credit Suisse traders deliberately inflated securities values by $3 billion with the primary intent of generating fictitious profits and increasing their year-end bonuses.
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
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.
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
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.
In March 2023, Credit Suisse secured a 50 billion Swiss franc loan from the Swiss National Bank to stabilize its financial situation.
Answer: True
To address its financial instability in March 2023, Credit Suisse obtained an emergency loan of 50 billion Swiss francs from the Swiss National Bank.
UBS acquired Credit Suisse for US$3.25 billion in an all-cash transaction in March 2023.
Answer: False
UBS acquired Credit Suisse for US$3.25 billion in an *all-stock* transaction, not an all-cash transaction, in March 2023.
Credit Suisse was officially declared defunct in May 2024.
Answer: True
Credit Suisse's official cessation of existence was announced on May 31, 2024, with its full integration into UBS Switzerland anticipated by July 2024.
The UBS takeover of Credit Suisse was widely praised for significantly increasing banking competition in Switzerland.
Answer: False
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.
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
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.
The 'Suisse Secrets' leak in February 2022 involved the disclosure of details for how many customers?
Answer: 30,000
The 'Suisse Secrets' leak in February 2022 revealed confidential details pertaining to 30,000 Credit Suisse customer accounts.
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.
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.
In March 2023, Credit Suisse took an emergency loan of 50 billion Swiss francs from which institution?
Answer: The Swiss National Bank (SNB)
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).
UBS acquired Credit Suisse in March 2023 for US$3.25 billion in what type of transaction?
Answer: An all-stock transaction
UBS acquired Credit Suisse in March 2023 for US$3.25 billion through an all-stock transaction.
On what date was Credit Suisse officially announced to have ceased to exist?
Answer: May 31, 2024
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.
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
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.
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
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.
Credit Suisse Group AG was classified by the Financial Stability Board as a global systemically important bank prior to its acquisition.
Answer: True
The Financial Stability Board recognized Credit Suisse Group AG as a global systemically important bank before its acquisition by UBS.
Credit Suisse, as a standalone firm, primarily focused on retail banking and did not offer investment banking services.
Answer: False
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.
Credit Suisse was widely recognized for its commitment to strict bank-client confidentiality and banking secrecy.
Answer: True
Credit Suisse was historically known for its stringent adherence to bank-client confidentiality and banking secrecy practices.
Credit Suisse's 'bancassurance' strategy involved separating its banking and insurance services into distinct, independent entities.
Answer: False
Credit Suisse's 'bancassurance' strategy aimed to *combine* banking and insurance services into a single, comprehensive financial services entity, not separate them.
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
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.
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
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.
As a standalone firm, which of the following was a type of financial service offered by Credit Suisse?
Answer: Investment banking
As an independent entity, Credit Suisse provided a range of financial services, including significant investment banking operations, alongside private banking and asset management.
Credit Suisse's 'bancassurance' strategy aimed to combine which two types of services into a single entity?
Answer: Banking and insurance
Credit Suisse's 'bancassurance' strategy was designed to integrate banking and insurance services, offering a comprehensive suite of financial products from a single entity.
The CreditRisk+ model, developed by Credit Suisse, is a risk assessment tool for loans that focuses exclusively on what?
Answer: The probability of default
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.
By 2012, Credit Suisse was recognized by Euromoney's Global Private Banking Survey as what?
Answer: The world's best private bank
By 2012, Credit Suisse achieved recognition as the world's best private bank, according to Euromoney's Global Private Banking Survey.