Do Not Let the Boring Façade of Credit S

Credit Suisse considers a refurbishment of its main office in Lucerne as important news! It is a sign for the stock market of the priorities and concerns of a business which serves a niche. Financial interests in the stock market do not always lose sleep over the idiosyncrasies of a listed company, but the ethics of private banking as practiced by the Swiss has been questioned in many circles for a long time.

Financial services for high net worth individuals constitute a short-term cash cow. Corrupt politicians and bureaucrats have used Swiss banking channels throughout the 20th century, but hopefully the dimensions of this business are not the best growth prospects in our times! Mutual funds and general awareness of investment principles have spread expertise related to financial services quite widely, and banks without strong products for people in legitimate ventures are not worthy of international stock market support.

The unique strengths of Credit Suisse are not very helpful for most interests in the U.S. stock market world. Checks on large financial transactions within the United States make banking with a Swiss entity of highly restricted relevance. Credit Suisse must focus on China and parts of the third world to find new and growing clientele for its secretive services, but the profit potential of such activity on the U.S. stock market scene is questionable.

Credit Suisse is not limited to private banking, for it does advise on investments and funding as well. However, the brand in this respect is diffused and compares poorly with leading American competitors. The bank makes much of its 150-year history, but investors must question the dividend and appreciation potentials of such a background. Absence from large-volume and visible market segments does no good for stock market confidence in this scrip. Stake holders in Switzerland may still stand to gain from the bank’s operations in shady parts of the world, but this can hold no attraction for investors in the United States. The bank’s systems, controls and commitment to staying away from entities which threaten security issues is unclear in the public domain.

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