On this day, 27th January 2020, investor backing Proven Poison Chalice for Credit Suisse CEO of Credit Suisse International became a cuckoo in the housing market. The stock market and the financial crisis it has caused have affected quite a few countries and companies worldwide. Among these countries, Japan and China are the ones who have suffered the most from the financial crisis.
When Steve Ballmer, the CEO of Microsoft took over as the CEO of the company, he was able to achieve a great deal. One of the most significant achievements of the time was the purchase of a lot of shares by the employees of the company. This is a common practice in every country all over the world but this is something which wasn’t possible when Steve Ballmer assumed his post as the CEO of Microsoft.
The reason why the shareholders of Credit Suisse were successful in their attempt to oust the CEO of Credit Suisse from his post was the fact that they had almost no investor backing behind them. The reason why there was hardly any investor backing behind the CEO of Credit Suisse was that the investors wanted to see the company be sold to the highest bidder. Of course, this was impossible due to the fact that this company had no assets to sell and therefore there was no money to sell. Therefore, the investors could not force the sale of Credit Suisse to a buyer who would buy the company.
Failure to Investors
This failure of the investors was due to the fact that the shareholders of Credit Suisse Proven Poison, for all intents and purposes, had run out of excuses. They couldn’t convince anyone to purchase the company and that is what caused the credit rating agency to be sold to Deutsche Bank for just over a billion dollars. The fact that the board of the company kept its board members on the payroll proves that the company wasn’t in a critical state.
The reason why the corporation that holds Credit Suisse’s license as an investment bank is falling apart is because of the fact that the government has opened itself up to manipulation. In order to control the economy, the Japanese government placed restrictions on banks that hold investment licenses. This caused banks like Credit Suisse to lose a lot of customers. Because of this, the economy crashed down and the citizens began to suffer.
Due to the fact that the Japanese government has banned the issuance of bonds to corporations that have no assets in Japan, the organization Credit Suisse failed to get government approval for its issuance of bonds. Even though the corporation lacked the financial capacity to finance the issuance of the bonds, it tried to do so anyway. With the help of the government and its bailouts, the bonds were eventually approved.
Credit Rating Agency Proven Poison
The reason why the Japanese government has intervened and made sure that the economy of Japan has not collapsed is because of the fact that it knew that Japan would never fall. Even though credit rating agencies are aware of the fact that a large portion of the population doesn’t trust the economy of Japan, the credit rating agencies are doing their jobs. They are taking stock of the health of the Japanese economy and they are predicting that the economy will continue to grow.
The CEO of Credit Suisse has not been fired from his position by the Japanese government, but he is being evicted from his office in Japan after fifteen years of employment by the Japanese government. His successor, Mr. Timothy S. Geithner, will replace him and will be paid by the same company that sold the corporation to the Swiss bank. This proves that even though credit rating agencies failed in the past and in the present, they are still needed to prevent another depression from occurring.