Part 8/10:
Adding to the crisis's complexity is Credit Suisse’s troubled history. The bank has faced numerous scandals, including failures to prevent money laundering, sanctions breaches, tax evasion, and bond fraud over the past two decades. Last year, it was convicted of money laundering for a Bulgarian drug trafficking gang, and its reputation remains deeply tarnished.
Further undermining confidence, Credit Suisse recently discovered material weaknesses in its financial reporting. Its delayed annual report, pending SEC review, indicates potential deeper issues. The bank’s financial position is so precarious that Swiss authorities have offered liquidity support preemptively, signaling concern about a possible failure if conditions worsen.