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(Bloomberg) -- Credit Suisse Group AG was stung by the collapse of Luckin Coffee Inc. in China following an accounting scandal, which led to a five-fold increase in Asian loan-loss provisions.The Swiss bank set aside 97 million Swiss francs ($100 million) for soured loans, primarily related to three cases, the largest of which was Luckin Coffee, according to a person familiar with the matter. The bank only referred to a “Chinese food and beverage company” in its earnings statement Thursday.Credit Suisse led the initial public offering for Luckin in New York last year and is among the biggest creditors on defaulted loans to Luckin founder Lu Zhengyao. The bank provided about $100 million in margin loans before accounting fraud allegations at the Chinese company triggered a collapse in the stock this month.Luckin, the biggest challenger to Starbucks Corp. in China, has said its chief operating officer and some of its employees...
Mike Raab has been the CEO of Ardelyx, Inc. (NASDAQ:ARDX) since 2009. This report will, first, examine the CEO......
(Bloomberg Opinion) -- As concern mounts about the rising levels of U.S. government debt, it’s important to keep in mind two principles that are not quite opposing but not quite complementary: First, there is no looming debt crisis. Second, the U.S. needs to address the growing federal deficit over the medium term in a deliberate way.To be clear, the pandemic has created an unprecedented shock, and the economic outlook is difficult at best. If there are Depression-like levels of unemployment for an extended period, then it would be a profound economic crisis and public debt will explode. That’s very different from saying that public debt will cause an economic crisis. There are a number of reasons to think that it will not.First, for nations that issue debt in their own currency, excessive levels of public borrowing tend to produce exchange-rate crises rather than debt crises. The reason for this is straightforward: If...
Top news and what to watch in the markets on Thursday, April 23, 2020....
Boeing Co (BA) is being sued by Kuwaiti Alafco Aviation Lease and Finance Co., for refusing to return the $336 million it paid for the delivery of 40 of its grounded 737 MAX jets.Alafco Aviation had canceled the plane order March 6 after the aerospace company allegedly failed to deliver the aircraft on time, according to media reports.The delivery of the order was expected be received in March 2010, Alafco Aviation said in a lawsuit filed Wednesday in federal court in Chicago.The failure to deliver the planes, “and the circumstances in which they have occurred, substantially impair the value of the purchase agreement as a whole,” Alafco said in the lawsuit. “Accordingly, Alafco has canceled its 737 Max aircraft orders and requested return of all advance payments.”The lawsuit is the latest blow to the aerospace company, which has seen shares plunging almost 60% this year. The stock slid 1% to close...
