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To: TobagoJack who wrote (22549)	8/12/2002 2:47:40 AM
From: elmatador	Read Replies (2) \| Respond to of 74559

Credit Suisse faces pressure over Ebner. Swiss Franc will be under pressure. It starts as an islotaed case. Then there is a string attached to a big bank, and pretty soon it is all over the place. Credit Suisse faces pressure over Ebner By Charles Pretzlik in London and William Hall in Zurich Published: August 11 2002 17:45 \| Last Updated: August 11 2002 17:45 Credit Suisse chief executive Lukas Mühlemann (pictured) will come under pressure this week to explain his bank's relationship with Swiss financier Martin Ebner and to reassure investors about the group's solvency. Credit Suisse publishes its first-half results on Wednesday with its share price trading two-thirds below its all-time high of SFr97. Analysts are likely to want details on the extent to which it has financed Mr Ebner's investments, which included shares in Credit Suisse, where he was the largest shareholder. The bank is believed to have about SFr1.5bn ($1bn) of credit outstanding with Mr Ebner, who has seen the value of his equities portfolio lose billions of francs. Mr Ebner has also been an outspoken supporter of Mr Mühlemann when he faced criticism for his leadership of Credit Suisse. "Just when we felt that about all the possible bad news had been discounted in the current share price, concerns over the financial health of Martin Ebner's BZ Group added their weight," said Lombard Odier's Regina Anhorn. One Zurich analyst said the collapse of Mr Ebner's holdings raised serious questions. "The Ebner situation is a question from a financial point of view and a corporate governance point of view," another analyst said. Credit Suisse warned last month that it expected a "modest net operating loss" in the second quarter and a "modest net loss to approximately break-even" in the first six months of 2002. Analysts predict the group will report a second-quarter net loss of just less than SFr500m, compared with an estimated SFr1bn net profit at arch rival UBS. Particular attention will be given to the group's capital adequacy. Richard Ramsden, analyst at Goldman Sachs, predicts its Tier 1 capital ratio will have fallen from 9 per cent to 8.2 per cent, mainly because of problems at the Winterthur insurance unit, which has been hit hard by falling equity markets. Analysts believe the group may also have to cut its dividend or raise funds through an equity issue. Ronit Ghose and Jeremy Sigee at Schroder Salomon Smith Barney said in a recent report: "A divestment of parts of Winterthur is probable in the near future." They added: "There are insufficient operational and capital synergies to justify Winterthur remaining part of CS in its current con- figuration." The group is known to have put its US property and casualty business up for sale.