Credit Suisse's $3.2 billion cut-price sale signals an ongoing crisis that could expose unicorn fintechs
, as well as crises relating to its relationships with hedge fund Archegos Capital and financial group Greensill Capital. Its delayed annual accounts showed it was around $8 billion in the red, and ultimately it fell after a collapse in investor confidence.. And that should have lessons for the shiny, fast-growing companies that want to be banks, and have only known an era of easy venture capital money and low interest rates.
"There's already a lot of soul searching about what fintech business models are," says Paul Rolles, an ex-Morgan Stanley managing director and cofounder of money-management service HyperJar.has been something of a darling of the startup world post-2008. The promise of technology-led businesses to shake up a staid, failed industry attracted huge amounts of investment. — face their first real questions about the viability of their business models.
A vigorous chase for customers during the low-interest rate boom years of the 2010s allowed fintechs to focus on growth without too much focus on profit. Recent developments might sharpen investors' minds, as they have elsewhere in the tech world. Rolles believes the banking issues of the past couple of weeks are as much about confidence as intrinsic issues.
"Back in 2008, the whole bank run was triggered off by US subprime mortgages but actually the amount of crap in the US subprime market wasn't that big," Rolles said."It was the fact that it triggered a lack of confidence and therefore a bank run."
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Musk responds to $100B credit line in $2B UBS-Credit Suisse deal: 'Wow'Twitter CEO Elon Musk responded to the news that UBS would get a $100 billion credit line in the buyout of Credit Suisse for $2 billion, with one word: wow.
Weiterlesen »
The fate of Credit Suisse could be decided in the next 36 hours | CNN BusinessThe fate of Credit Suisse could be decided in the next 36 hours after a torrid week for Switzerland's second biggest bank.
Weiterlesen »
Credit Suisse faces demise as UBS, Swiss regulators discuss takeoverFuture of 167-year-old Credit Suisse in question amid reports of a takeover by rival UBS as soon as Saturday evening as world economies scramble to prevent another global financial contagion
Weiterlesen »
UBS Considers Acquiring Credit Suisse, Requests Government Backstop in Deal – Bitcoin NewsPeople familiar with the matter say UBS wants the Swiss government to safeguard the deal if it acquires CreditSuisse. Banks BailOuts
Weiterlesen »
UBS Nears Deal to Take Over Credit SuisseUBS Group AG is nearing a deal to take over Credit Suisse Group AG, part of an urgent effort engineered by Swiss and global authorities to restore trust in the banking system.
Weiterlesen »
UBS closing in on deal to buy fellow Swiss bank Credit SuisseSwiss bank UBS Group is closing in on a deal to take over its rival Credit Suisse amid a weekend of frenzied negotiations, according to multiple reports.
Weiterlesen »