A smart analyst at Autonomous has spotted something weird in the Archegos disclosure by Credit Suisse.
Bear with me for the hunt for the missing billion.
Bear with me for the hunt for the missing billion.
Pre tax the bank lost -757m ow -4430m on Archegos so 3673m ex Archegos.
Pre Archegos the tax rate guidance was 26%, so a tax of -955m on the pre Archegos profit before tax.
Pre Archegos the tax rate guidance was 26%, so a tax of -955m on the pre Archegos profit before tax.
The CFO said they took only 650m of tax shield on Archegos because the loss was so big that the relevant legal tax entities (in US & UK) could not absorb the loss with future profitability
So the tax should have been a 305m tax cost.
BUT the bank actually booked a 526m tax benefit !
Where does the missing 830m come from ? There's a beautiful 830m tax benefit coming from... nowhere ?
BUT the bank actually booked a 526m tax benefit !
Where does the missing 830m come from ? There's a beautiful 830m tax benefit coming from... nowhere ?
My hunch is they booked some kind of one-off profit that wasn't taxable... but I would sure love to know what and how?
@StevenArons @BondHack @CNBCJou
@StevenArons @BondHack @CNBCJou
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