Credit Suisse postpones annual report after ‘late call’ from the SEC

London (CNN) Credit Suisse can’t take a break.

In the latest troubling news, the beleaguered Swiss bank has delayed the release of its 2022 annual report following a “late call” from the US Securities and Exchange Commission on Wednesday evening.

The SEC reached out about revisions the bank had previously made in its cash flow statements for 2019 and 2020, Swiss credit (CS) said in a statement Thursday.

Shares in the bank, which traded near record lows, fell 5%.

“Management believes it is prudent to briefly delay publication of its accounts to better understand the comments received,” the company said.

Credit Suisse added that the 2022 financial results were not affected. They revealed the largest annual loss since the financial crisis in 2008, and exposed the magnitude of the challenge the bank faces in its attempted turnaround.

Thursday’s news underscores that challenge and will also raise concerns about governance at Credit Suisse. It is already in the crosshairs of Switzerland’s financial regulator, which is reportedly looking into comments made by the lender’s chairman about the health of its finances.

Customers withdrew 111 billion Swiss francs ($121 billion) in the last three months of 2022, as the bank was hit by social media speculation that it was on the brink of collapse.

The rumors, which led to a sell-off of the lender’s shares, followed a series of missteps and compliance failures that damaged the bank’s reputation and profits and cost top executives their jobs.

Finma, the Swiss regulator, is trying to determine the extent to which Axel Lehmann and other bank representatives knew customers were still withdrawing money when he told reporters the outflows had stopped, Reuters reported last month, citing people familiar with the matter.

Finma declined to comment and Credit Suisse told CNN it was “not commenting on speculation”.

In October, Credit Suisse embarked on a “radical” restructuring plan that involves cutting 9,000 full-time jobs, spun off the investment bank and focusing on asset management.

“We have a clear plan to create a new Credit Suisse and intend to continue our three-year strategic transformation by reshaping our portfolio, reallocating capital, adjusting our cost base and building on our leading franchises,” said CEO Ulrich. Körner said on February 9.






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