Saturday, 21 July, 2018

Credit Suisse fined $135 million by United States for malpractices

SWITZELRAND-CREDITSUISSE-BANKING Credit Suisse was fined in the forex probe
Nellie Chapman | 15 November, 2017, 05:08

A decade on from the onset of the global financial crisis, global wealth has grown by 27 percent, this according to Credit Suisse Research Institute's 2017 Global Wealth Report.

The number of millionaires in the USA just hit an all-time high, a new banking report finds.

"Wealth per adult has now fully recovered [from financial crisis lows], and is 30% above the 2006 level", the bank says.

The US generated more than half of the total global wealth aggregation of $16.7 trn of the past 12 months.

The Credit Swiss bank has been ordered to pay a fine of $135 million to USA authorities after an enquiry into the Swiss bank's practices in setting foreign exchange rates.

"Looking ahead, however, high market valuations and property prices may curb the pace of growth in future years".

The U.S. still leads the world in millionaires, with 15.3 million people worth $1 million or more.

According to the report, growth in Europe was the second highest of all regions, but the United Kingdom was singled out as having an "uncertain" outlook because of Brexit.

Not everyone expects to acquire such wealth, however, especially millennials. The Millennial group as a whole may face some ongoing challenges that prior generations have not faced.

"Those with low wealth tend to be disproportionately found among the younger age groups, who have had little chance to accumulate assets", Credit Suisse chairman Urs Rohner, explained. Millennials may also be more educated than their parents, but the chairman noted that "We expect only a minority of high achievers and those in high demand sectors such as technology or finance to effectively overcome the "millennial disadvantage".

The report showed that there are now more than 36 million global millionaires in dollar terms.

The wealthiest 10 per cent of people, meanwhile, own 87.8 per cent of global wealth. At the same time, the number of ultra-high-net-worth individuals has risen five-fold. Emerging economies are expected to generate wealth at a faster pace than their developed peers and are likely to achieve a 22% share in global wealth at the end of the five-year period.