Credit Suisse: Imperiled global investment bank has CCP-tied official on risk committee

One of the world’s largest financial institutions is teetering on a full-blown crisis. Affiliated with the Chinese Communist Party Individuals in its risk management team.

On Wednesday, Swiss bank Credit Suisse plunged nearly 30 percent, leading to a sudden afternoon trading halt, after it admitted in its annual report that it had “material weakness.” and its largest investor, a Saudi state-owned bank, said it was a ‘material weakness’. Do not provide additional support citing a “regulatory issue.”

Then, on Thursday, Credit Suisse said it intended to borrow $54 billion from the Swiss National Bank as an unprecedented lifeline to shore up its liquidity.

“These actions demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” CEO Ulrich Koerner said in a statement. “My team and I are committed to moving faster to deliver a simpler and more focused bank that is tailored to client needs.”

Credit Suisse shed about 25%, with key backer saying there is no more money

According to its website, however, Shan Li, a figure with extensive ties to the Chinese Communist Party (CCP), has been a board member of the bank since 2019 with senior roles in its risk management team, Asia Advisory Council and compensation committee. are

Credit Suisse’s website also boasts Lee’s extensive experience. Associated with the Chinese government For example, he is a board member of the Silk Road Finance Corporation, which aims to advance the Chinese government’s Belt and Road Initiative, and previously held senior positions at the China Development Bank and the Bank of China. Has held positions, both of which are state. -property.

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Li’s profile page also shows that he is a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), a key member of the CCP’s “United Front” influence campaign apparatus. According to a US government report published in 2018, the CPPCC is a “critical coordinating body” that brings together representatives of Chinese interest groups and is led by the Standing Committee of the CCP’s Politburo.

“CPPCC, an Advisory Committee headed by [CCP],’ is the highest-ranking body overseeing the United Front System,” said the report, which was compiled by the United States China Economic and Security Review Commission, an independent federal agency.

The report added that “the united front strategy uses a number of methods to influence overseas Chinese communities, foreign governments and other actors to take actions or take positions in favor of Beijing’s preferred policies.” ” “A number of government and semi-government organizations conduct activities overseas under the guidance or financial support of the United Front, including the Chinese government and military organizations.”

CPPCC has also demonstrated the ability to infiltrate other entities. Impact on the US economy. The CEO of a major Chinese tech company that inked a high-profile deal last month to help Ford Motor Co develop batteries for its electric vehicles is also CPPCC, Fox News Digital reported at the time. is a member of

Meanwhile, the near-failure of Credit Suisse, which followed its collapse California-based Silicon Valley Bankraised fears of a full-blown global banking crisis and called into question the safety of the global banking system. The European Union sought to allay concerns by confirming that the banking sector has remained “resilient,” but Bloomberg reported that the US government was closely monitoring the situation.

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The Financial Stability Board, an international body that oversees the global financial system, specifically names Credit Suisse among 30 institutions that are “systemically important.”

But in recent years, Credit Suisse has faced several scandals and has vowed to revamp its risk management operations. In June 2022, the bank announced it would move forward with major overhauls as it also dealt with litigation costs associated with the collapse of the former New York City-based Arcegos Capital Management firm, CNBC reported. .

Now, Credit Suisse is facing legal action from US shareholders who accuse the Swiss bank of failing to disclose its financial problems and violating securities laws.

There have been class action lawsuits. Filed against Credit Suisse in federal court, alleging that the bank made false or misleading statements about its finances and failed to adequately demonstrate that it faced a “significant” increase in customer outflows at the end of 2022. is lying A newly filed lawsuit includes those claims, as well as a claim related to material weaknesses in Credit Suisse’s internal financial controls.

Credit Suisse did not respond to Fox News Digital’s request for comment.

Eric Revell of Fox News contributed reporting.