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What I get from the article: Some scumbags loaned money from Credit Suisse. As security, they used their big boats and airplanes. Credit Suisse then themselves
by progre 5y ago
What I get from the article:
Some scumbags loaned money from Credit Suisse. As security, they used their big boats and airplanes.
Credit Suisse then themselves loaned money from hedge funds offering a very good return and using the scumbags loans as security. To prove that they had security for those loans they sent pictures of the boats and planes to the hedgefund.
Then someone told a newspaper that Credit Suisse was loaning money to scumbags.
To make this less embarrasing Credit Suisse is now asking the hedgefund to throw away the picures of the boats.
- belter 5y agoThis is the correct explanation. Their request comes out of trying to limit the damage of this leak: "Credit Suisse leak unmasks criminals, fraudsters and corrupt politicians" https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians https://www.theguardian.com/news/2022/feb/20/credit-suisse-s... Even the Vatican is on it: "...One Vatican-owned account in the data was used to spend €350m (£290m) in an allegedly fraudulent investment in London property that is at the centre of an ongoing criminal trial of several defendants, including a cardinal..."
- smorgusofborg 5y agoI wonder if this will reawaken Vatican banker death investigations.
- blitzar 5y agoI am curious as to why the vatican needed to borrow the 350mil... they could have found that down the back of the sofa easily enough.
- kelnos 5y agoBecause when you have a lot of money, you can loan money at really low interest rates. Rates that are lower than the rate of return on the investments you'd have to sell to avoid the loan in the first place. If banks are willing to give you really cheap money, you take it.
- blitzar 5y agoThey also have many many billions sitting in cash accounts with CS earning 0 (and in some account negative rates). But yes, deals are much easier to structure as 100% debt and the investment, maintains liquidity and limits liability. Set up investment co, borrow with gaurantee from parent etc.
- hef19898 5y agoJust wow... A picture??? Wouldn't a serious banking concern ask for titles and formal legal documentation? And damn, Credit Suisse really is a cesspool. Not that other big banks are any different, say Deutsche, but Credit Suisse seems to be both, stupid enough to be caught and scum bag enough to actually do it.
- DyslexicAtheist 5y agothe "beauty" about Swiss banking is that it's like banking in the rest of (Western) EU in the 70ies. A lot less paper but a lot more personal intuition (personality cults) that make the power decisions. While this is true in all of banking in onshore jurisdictions of Barclays or Deutsche they still need to have some form of paperwork and that backs up decisions and show compliance. Switzerland is still the wild-west. That said Swiss banking is a lot more organized, transparent (to foreign institutions) than other offshore jurisdictions like Nevada, New Mexico, UAE (and the more well known exotic places like Panama). Treasure Islands: Tax Havens and the Men who Stole the World: https://en.wikipedia.org/wiki/Treasure_Islands https://en.wikipedia.org/wiki/Treasure_Islands
- nmeofthestate 5y agoLess potentially confusing if you use the terms "to borrow money from" and "to loan money to".
- speg 5y agoYeah! I’ so confused reading some of these comments. Isn’t “loan” to lend money, and “borrow” to receive money? Do some locales use “loan” as both?
- catherd 5y agosome (most?) languages have a single bidirectional word
- Cederfjard 5y agoIn Swedish for example, “att låna” is ”to borrow”, and ”att låna ut” is ”to lend” (”to loan out”).
- namibj 5y agoGerman leihen is loan, while verleihen is lend. The "ver" is akin to "away", i.e., "loan away" (though this isn't a 1:1 translation and only works for one of the meanings on both sides of the language barrier).
- skydhash 5y agoIn Haitian creole, if the main object of the verbe “prete” is a person, it means loan, and the second object says what. If it’s only one non person object, it means borrow.
- leephillips 5y agoNo, you’re right. Probably English is not their first language.
- progre 5y agoSorry, yes. I wrote that mess. I'm swedish, we use the same word for both sides of the transaction. "Låna" - very obviously related to the english "loan". It didn't occur to me that there is a directionality to the English term.
- aaron695 5y ago
- dreamcompiler 5y agos/loaned money from/borrowed money from/