Shares of Credit Suisse are tumbling after reports surfaced that the Justice Department is investigating its role in asset hiding.
RACHELLE AKUFFO: All right, everyone. It is time for Triple Play, the three stocks that we're watching in the final 30 minutes of trading. You've got Credit Suisse, Coinbase, and Walmart on deck. So kicking us off with my pick, which is one of Europe's largest banks, Credit Suisse, ticker CS, under more pressure today. We're seeing the stock off more than 5% today. And that's as Bloomberg reports the Justice Department is investigating the role the bank played in helping US clients hide assets from authorities and the IRS, particularly, as they mentioned in that article, those with South American passports.
Now, this comes just eight years after the bank already paid $2.6 billion in a tax evasion settlement. And it's just the latest in a string of recent missteps. We're also seeing that Goldman Sachs analysts estimate that these scandals could result in a capital shortfall of up to $8.1 billion in 2024. And that's when you factor in weaker earnings, risk weighted asset inflation, the risk of continued litigation, and of course, ongoing restructuring costs.
We were talking about those recently, these restructuring initiatives, including the buyback announcement last week of up to 3 billion Swiss francs of debt, and also focusing more on its wealth management business. And if you look at the losses, just from the past three quarters, that hit $4 billion. And the stock itself off about 60% year to date, Seana.
SEANA SMITH: It certainly has some challenges here ahead of it. Now, it is important to point out Credit Suisse denying any improper misconduct here, saying that it is cooperating with US authorities. They did put out a statement on this, saying that Credit Suisse doesn't tolerate tax evasion. That's not a surprise. They also went on to say that we have implemented extensive enhancements since 2014-- what you were just talking about, Rachelle-- to root out individuals who seek to conceal assets from tax authorities.
You just mentioned the number of hurdles that Credit Suisse has in front of them. We know Wall Street has had a lot of questions just about what the bank will look like 6, 9, 12 months from now. So this, of course, is just the latest challenge here, and we're seeing that reflected in shares today with the stock, once again, under pressure.