After some customers pulled their investments and deposits, Credit Suisse Group AG warned that it would lose around $1.6 billion in the fourth quarter according to the Wall Street Journal.
Customers in the bank's wealth-management arm reportedly removed $66.7 million. The fast pace of withdrawals caused the bank's liquidity to fall below some local-level requirements. Under post-financial-crisis-era rules, banks must keep enough liquid assets on hand to meet expected cash outflows in a thirty-day period.
The reduced customer assets mean the bank has less money to manage and will earn less in fees, according to the bank's filings. Credit Suisse executives said that A broader slowdown in activity in its wealth-management division and investment bank contributed to the warning of a pretax loss of around $1.6 billion for the quarter. Credit Suisse's filings say more than $100 billion has left the bank since June.
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