Money
2023 Swiss Regulator: Credit Suisse Made ‘Serious Breach’ Of Law
GENEVA, Switzerland — Swiss regulators have determined that Credit Suisse committed a “serious breach” of law in connection with a now-bankrupt firm linked to Australian financier Lex Greensill and have launched an investigation that could result in penalties for four former bank executives.
FINMA, Switzerland’s financial markets authority, announced Tuesday that it had concluded enforcement proceedings against Credit Suisse that were initiated two years ago after bank partner Greensill Capital went bankrupt. At the time, Credit Suisse closed four funds that were linked to the partnership. About $10 billion was invested in these funds by bank clients.
Credit Suisse’s troubled ties to Greensill Capital were just one of a slew of issues that have resulted in repeated top-management shake-ups and corporate restructurings in recent years. Greensill Capital was also the subject of investigations in the United Kingdom, with allegations that the firm founded by Greensill, a former adviser to former British Prime Minister David Cameron, received lucrative government contracts before going bankrupt.
In Switzerland, FINMA announced that to conclude its investigation, Credit Swiss’s top executives must regularly review about 500 of its most important business relationships and record the responsibilities of about 600 of its highest-ranking employees. The authority also stated that it had opened four enforcement proceedings against former bank executives, whom it did not name.
FINMA announced that to conclude its investigation, Credit Swiss’s top executives
“FINMA came to the conclusion that Credit Swiss Group seriously broke its supervisory duty over the years by failing to identify, limit, and monitor risks in its business relationship with Lex Greensill,” it said. “FINMA thus concludes that a serious breach of Swiss supervisory law has occurred.”
The authority collaborates with financial institutions, including banks, insurance companies, and the Swiss stock exchange, to ensure proper internal controls and stability. FINMA’s ability to issue penalties is limited, but it does have the authority to revoke business licenses in extreme cases. If more severe penalties or fines are warranted, it is up to prosecutors to pursue them.
In Greensill’s “supply chain finance” model, his company acted as a middleman between businesses and their suppliers, paying invoices that suppliers issued to their customers in exchange for a fee. The claims against those customers were then converted into securities that could be sold. Financial products became far riskier than initially indicated over time.
Credit Suisse “made partly false and overly positive statements” to FINMA about how claims were chosen and the exposure to some debtors, according to FINMA.
Credit Suisse expressed its appreciation for the case’s resolution without naming Greensill. Since March 2021, the Zurich-based bank has taken steps to strengthen governance and control, including dismissing “several managers and employees” in its asset management division, among other things.
SOURCE – (AP)
Business
Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies
Warren Buffett suddenly changed how his vast fortune would be spent after his death.
Buffett, 93, the chairman of Berkshire Hathaway, told the Wall Street Journal that he has revised his will and does not intend to continue making payments to the Bill & Melinda Gates Foundation after his death. He plans to place his riches in a new charity trust controlled by his three children.
“The Gates Foundation has no money coming after my death,” Buffett told the Journal.
Buffett | Fortune image
Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies
Buffett told the Journal that he had altered his will multiple times, and he put together the most recent plan because he believes in his children’s beliefs and how they will share his fortune. Each of Buffett’s children runs a charitable organization.
“I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett said in a Journal interview.
Previously, Buffett stated in his will that more than 99% of his estate would be donated to the Bill & Melinda Gates Foundation and four family-related charities: the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and the NoVo Foundation.
Buffett plans to continue making donations to the Gates Foundation during his lifetime.
Berkshire Hathaway announced Friday that Buffett is changing around 9,000 Class A shares into more than 13 million Class B shares. The Bill & Melinda Gates Foundation Trust will receive around 9.3 million shares, with the remainder distributed among the four Buffett family charities.
“Warren Buffett has been exceedingly generous to the Gates Foundation through more than 18 years of contributions and advice,” the foundation’s CEO, Mark Suzman, told CNN. “We are deeply grateful for his most recent gift and contributions totaling approximately $43 billion to our work.” (Melinda stated in May that she would leave the group; her last day was June 7, but the foundation’s name has not yet changed.)
Buffett donated over $870 million to his family’s four organizations last year, with an additional $750 million expected in 2022.
According to the corporation, after the newly announced donations, Buffett now holds 207,963 Berkshire Hathaway Class A shares and 2,586 Class B shares. The shares are worth approximately $128 billion. Warren Buffett suddenly changed how his vast fortune would be spent after his death.
Buffett, 93, the chairman of Berkshire Hathaway, told the Wall Street Journal that he has revised his will and does not intend to continue making payments to the Bill & Melinda Gates Foundation after his death. He plans to place his riches in a new charity trust controlled by his three children.
buffett | CNBC image
Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies
“The Gates Foundation has no money coming after my death,” Buffett told the Journal.
Buffett told the Journal that he had altered his will multiple times, and he put together the most recent plan because he believes in his children’s beliefs and how they will share his fortune. Each of Buffett’s children runs a charitable organization.
“I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett said in a Journal interview.
Previously, Buffett stated in his will that more than 99% of his estate would be donated to the Bill & Melinda Gates Foundation and four family-related charities: the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and the NoVo Foundation.
Buffett plans to continue donating to the Gates Foundation during his lifetime.
Berkshire Hathaway announced Friday that Buffett is changing around 9,000 Class A shares into more than 13 million Class B shares. The Bill & Melinda Gates Foundation Trust will receive around 9.3 million shares, with the remainder distributed among the four Buffett family charities.
Warren Buffett Has Finally Revealed What Will Happen To His Money After He Dies
“Warren Buffett has been exceedingly generous to the Gates Foundation through more than 18 years of contributions and advice,” the foundation’s CEO, Mark Suzman, told CNN. “We are deeply grateful for his most recent gift and contributions totaling approximately $43 billion to our work.” (Melinda stated in May that she would leave the group; her last day was June 7, but the foundation’s name has not yet changed.)
Buffett donated over $870 million to his family’s four organizations last year, with an additional $750 million expected in 2022.
According to the corporation, after the newly announced donations, Buffett now holds 207,963 Berkshire Hathaway Class A shares and 2,586 Class B shares. The shares are worth approximately $128 billion.
SOURCE – (CNN)
Investment
Amazon Crosses $2 Trillion In Stock Market Value For The First Time
NEW YORK — Amazon.com Inc.’s market value topped $2 trillion for the first time in afternoon trade on Wednesday.
The increase in Amazon’s stock market valuation comes just over a week after Nvidia reached $3 trillion and briefly became the most valuable firm on Wall Street.
Amazon | AP News Image
Amazon Crosses $2 Trillion In Stock Market Value For The First Time
Nvidia’s chips power numerous AI applications, so the company’s price has skyrocketed.
Amazon has also made significant investments in AI as the technology’s popularity has increased worldwide.
Amazon | Forbes Image
Amazon Crosses $2 Trillion In Stock Market Value For The First Time
The majority of the company’s attention has been on business-oriented products, such as AI models and a chatbot named Q, which Amazon makes available to businesses that use its cloud computing unit AWS.
In April, Amazon CEO Andy Jassy stated that AI capabilities have reaccelerated AWS’s growth and that it was on track to generate $100 billion in annual revenue.
Amazon | Forbes
Amazon Crosses $2 Trillion In Stock Market Value For The First Time
Last year, the unit’s growth slowed as companies trimmed expenditures due to high inflation.
The digital behemoth has also invested $4 billion in Anthropic, a San Francisco-based AI business, to develop foundation models for generative AI systems. Amazon also creates and designs its own AI processors.
SOURCE – (AP)
Business
AmEx Buys Dining Reservation Company Tock From Squarespace For $400M
NEW YORK — American Express will pay $400 million for Squarespace’s Tock meal reservation and event management software.
AmEx began making dining and event purchases five years ago with the purchase of Resy, which provided cardmembers with access to difficult-to-find restaurants and locations.
AmEx | AP News Image
AmEx Buys Dining Reservation Company Tock From Squarespace For $400M
Other credit card difficulties have done the same thing. JPMorgan bought The Infatuation as a lifestyle brand in 2021.
Tock, founded in Chicago in 2014 and owned by Squarespace since 2021, offers reservation and table management services to about 7,000 restaurants and other venues.
AmEx | Yahoo Image
AmEx Buys Dining Reservation Company Tock From Squarespace For $400M
Tock has signed on restaurants such as Aquavit, a high-end Nordic restaurant in New York, and Chez Noir, a buzzy new restaurant in California.
Squarespace and Tock confirmed the acquisition on Friday.
AmEx’s purchase of Resy five years ago raised many heads in the credit card and dining industries. Since then, it’s become an important component of how the corporation secures high-end merchants to be AmEx-exclusive or to provide AmEx cardmembers with special treatment.
AmEx | Eat App Image
AmEx Buys Dining Reservation Company Tock From Squarespace For $400M
The number of eateries on the platform has increased fivefold.
AmEx also announced Friday that it will acquire Rooam, a contactless payment technology widely used in stadiums and other entertainment events. AmEx did not disclose the amount it paid for Rooam.
SOURCE – (AP)
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