Credit Suisse fined $135m for NY forex investigation

Share

"But we find that millennials face particularly challenging circumstances".

The economic gap between the world's super-rich and everyone else is growing yet again, according to Credit Suisse's 2017 global wealth report.

"Those with low wealth tend to be disproportionately found among the younger age groups, who have had little chance to accumulate assets", Credit Suisse chairman Urs Rohner, explained. The firm feels that a hard start and adverse market conditions in their early adult years most likely will limit their wealth acquiring prospects in future years. And in every region of the world except for China, they say, median wealth has actually declined.

They have been hit with direct losses from the global financial crisis, but also "faced first-hand the subsequent unemployment, increased income inequality, as well as higher property prices, tighter mortgage rules, and in some countries, a considerable rise in student debt", the study said. High student debt in some countries was also referenced.

Credit Suisse, like numerous other foreign banks, operates in the United States through foreign branches that are licensed and regulated by NY state.

Millionaires now comprise 0.7 percent of the world's adult population.

The U.S. still leads the world in millionaires, with 15.3 million people worth $1 million or more. Credit Suisse went on to show that the wealthiest 10% own 88% of the world's wealth.

A decade on from the onset of the global financial crisis, global wealth has grown by 27 percent, this according to Credit Suisse Research Institute's 2017 Global Wealth Report.

Early this year, United States authorities announced a $5.28 billion settlement with Credit Suisse over its role in the sale of the kind of toxic securities that led to the global financial crisis of 2008.

Credit Suisse is even forecasting that the number of ultra-high net worth individuals will likely increase by 45,000 to a level of 193,000 individuals by 2022.

The department's superintendent Maria Vullo said certain bank executives "deliberately fostered a corrupt culture" which permitted repeated violations of the law and of client trust.

This report was the eighth such annual report out of Credit Suisse, and the firm measures roughly 4.8 billion adults over approximately 200 countries for its data.

Share