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Customer Withdrawals

All articles tagged with #customer withdrawals

cryptocurrencyfraud2 years ago

Unraveling the Deception: The Trial of Sam Bankman-Fried

Former FTX Chief Executive, Sam Bankman-Fried, asked the company's former top lawyer to come up with "legal justifications" for the missing $7 billion in customer funds just days before FTX declared bankruptcy, according to the lawyer's testimony at Bankman-Fried's fraud trial. The lawyer, Can Sun, testified that Bankman-Fried or another executive sent him a spreadsheet indicating the exchange was billions of dollars short and owed billions to Bankman-Fried's hedge fund. Sun's testimony complicates Bankman-Fried's defense that he believed the use of customer funds was appropriate. Bankman-Fried is accused of looting customer funds for investments, political campaigns, and to prop up his hedge fund.

via Reuters|
#cryptocurrencyfraud#customer-withdrawals#fraud-trial
finance2 years ago

Credit Suisse's Final Days Marked by Massive Outflows and Painful Rescue.

Credit Suisse reported a loss of over $2 billion in Q1 2023, with customers withdrawing around $75 billion in deposits, leading up to its rescue by UBS Group AG. The bank posted a net profit due to paper gains from writing off $17 billion in bonds. Revenue fell across its investment-banking and wealth-management arms and its domestic bank.

via The Wall Street Journal|
#credit-suisse#customer-withdrawals#finance
finance2 years ago

Moody's downgrades US banking sector outlook to negative.

Moody's has downgraded the US banking sector's outlook to "negative" from stable, warning of a rapid deterioration in the operating environment. The ratings giant has warned that some banks face risks of customer withdrawals and rising interest rates, which could expose banks to potential losses. The downgrade came after a run on deposits led to the collapse of Silicon Valley Bank, which was a key lender to technology firms. US regulators have taken over the bank and guaranteed deposits beyond the $250,000 level typically insured by the government.

via BBC|
#customer-withdrawals#finance#interest-rates