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  "documentTitle": "id19 an effective approach 3 case studies",
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      "text": "Being a global bank, the risk of being implicated in global scandals will undoubtedly be higher than for less international banks. However, it seems Credit Suisse found itself embroiled in a greater number of scandals compared to other global banks.",
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      "text": "Luckin Coffee Inc. (Luckin Coffee) is a coffee chain which was launched in China and became a unicorn in a short period of time. Its speedy growth from the initial funding stage to launching an initial public offering was achieved within two years, with the underwriters being Credit Suisse and Morgan Stanley.121",
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      "text": "Although the financial losses recorded by Softbank and Credit Suisse were limited due to an insignificant exposure to the Wirecard bonds, Wirecard's collapse rebounded on many institutions that had once helped the company to establish its presence in Europe's technology scene.131",
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      "text": "After helping sell the convertible bonds to Softbank, Credit Suisse helped Softbank cut its exposure.129 It packaged the convertible bonds for resale to third party investors. However, in June 2020, Wirecard's stock crashed after news broke that its auditor could not account for more than US$2 billion in cash on the company's balance sheet. The convertible bonds fell to just 12% of their face value, causing huge losses to the investors, including European private banks which bought them.130",
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      "text": "Being a global bank, the risk of being implicated in global scandals will undoubtedly be higher than for less international banks. However, it seems Credit Suisse found itself embroiled in a greater number of scandals compared to other global banks.",
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      "text": "Credit Suisse was also publicly criticised for several deals it arranged for another key Asian client, Masayoshi Son's SoftBank. In late 2019, Credit Suisse bankers helped Wirecard AG (Wirecard) sell US$1 billion worth of convertible bonds that Softbank had agreed to buy.126,127 This was apparently done to establish a strategic partnership with Softbank. The deal was closed by September 2019 and helped stabilise Wirecard's volatile share price. Wirecard was already facing allegations of accounting fraud at that time.128",
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      "text": "Following this accounting scandal, Credit Suisse had to bear a five-fold increase in the loan-loss provisions for the region. It set aside US$100 million to provide for the potential default of Luckin Coffee. Credit Suisse had lent millions of dollars of money to Luckin Coffee's Chairman Lu and was one of the biggest creditors for the loans defaulted by Luckin Coffee.125",
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      "text": "Shortly after it was listed, a shortseller's report led to the unravelling of major fraud in the company.122 It was unveiled that Luckin Coffee had been falsifying the books over almost a year from April 2019. More than US$310 million of retail sales over this period were fabricated. Numerous other issues relating to the company's Chairman, its business model and its corporate governance were raised in the shortseller's report. The company's valuation plummeted from US$12.7 billion to US$731.5 million,123 and its share price fell from a peak of US$50 to less than US$3.124",
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