Credit Suisse To Raise 4bn CHF To Fund Restructure, Tesla Inc. Under Criminal Investigation, Trading Of TWTR Shares Will Be Paused
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Summary:
- Credit Suisse is essentially dismantling the investment bank.
- EV with self-driving capabilities was involved in many accidents.
- Musk has until October 28 to complete his $44 billion acquisition of TWTR.
Credit Suisse to restructure
Credit Suisse Group AG announced a restructure that will result in a multibillion dollar capital raising, thousands of job cutbacks, and the separation of the investment bank, taking the most drastic moves yet to restore the firm. According to a statement released on Thursday, the company intends to raise 4 billion francs ($4.1 billion) by selling shares to investors, including the Saudi National Bank, and through a rights issue. By splitting up the advice and capital markets businesses and selling the majority of its SPG business to Apollo Global Management Inc. and Pacific Investment Management Co., it is essentially dismantling the investment bank.
After a string of significant losses and managerial upheaval destroyed Credit Suisse's reputation as one of the most respected institutions in Europe, the makeover is an urgent effort to rebuild trust. Ulrich Koerner, the bank's chief executive officer, and Chairman Axel Lehmann, who were appointed as crisis managers, now have the difficult task of carrying out the largest restructuring in the bank's recent history while attempting to safeguard the wealth management division that will determine its future.
Credit Suisse seeks billions from investors in make-or-break overhaul https://t.co/MSy4Q4h7fT pic.twitter.com/e9mg3eUByl
— Reuters Business (@ReutersBiz) October 27, 2022
TSLA under criminal investigation
The National Highway Traffic Safety Administration (NHTSA) released its initial wave of data on car crashes involving vehicles with autonomous driving systems in June of last year as part of its attempts to increase traffic safety while still encouraging innovation.
It came out that a very well-liked electric car with self-driving capabilities was involved in a lot more accidents than was previously thought. Ten months of data were covered in the June report. It showed that when employing fully autonomous capabilities like Tesla's Autopilot, ADAS-equipped vehicles crashed 392 times, with Tesla vehicles accounting for 273 of those collisions. It represents around 70% of the cases.
Given this context, it was logical but yet surprising to learn that the Department of Justice is looking into Tesla as part of a criminal investigation. The revelation that the Department of Justice is looking into Tesla as part of a criminal probe made sense given this backdrop, but it was nonetheless unexpected.
The Justice Department is looking into possible customer misinformation regarding the functionality and security of the self-driving feature.
For the mere reason that Tesla emphasizes in its own materials that the cars are not yet capable of completely autonomous driving, it might be challenging to make any form of claim against the company over excessive promises.
Tesla is under criminal investigation in the United States over claims that the company's electric vehicles can drive themselves, three people familiar with the matter said https://t.co/HQh5rvn54u pic.twitter.com/oGo5ZKtWqT
— Reuters Business (@ReutersBiz) October 27, 2022
Musk to acquire TWTR by October 28th
According to the website of the New York Stock Exchange, trading in Twitter Inc. (TWTR) shares will be paused on Friday because entrepreneur Elon Musk has until October 28 to complete his $44 billion acquisition of the social media platform.
Musk, the richest man in the world, visited Twitter's San Francisco offices on Wednesday and implied that he was the company's top executive by changing his profile bio to "Chief Twit."
Reuters stated on Tuesday that Musk's attorneys had provided the necessary documentation for the finance pledge to equity investors Sequoia Capital, Binance, Qatar Investment Authority, and others.
The closing of the transaction would put an end to Twitter's litigation. Twitter, together with the investors, now anticipate that the transaction will close at the agreed-upon price of $54.20 per share.
On Wednesday, the NYSE saw the company's stock close at $53.35 per share. They were trading slightly below Musk's offer price in extended trading, up nearly 1% at $53.90.
*TWITTER WILL BE DELISTED FROM THE NYSE ON FRIDAY AFTER MUSK COMPLETES DEAL$TWTR pic.twitter.com/jasBHEMrJp
— Investing.com (@Investingcom) October 27, 2022
Sources: twitter.com, investing.com, reuters.com, finance.yahoo.com, thestreet.com
