NY fines Credit Suisse $135 mn over forex manipulation

Report Swiss are richer than ever but wealth inequality persists

The increase in wealth among the already filthy rich led to the creation of 2.3 million new millionaires in just the past year.

Overall, Credit Suisse found global wealth at mid-2017 totalled $407 trillion, up 6.4 percent year-on-year, the fastest pace of growth since 2012 thanks to surging equity markets and more valuable non-financial assets such as property.

Globally, Switzerland remains the richest nation in the world in terms of wealth per adult with $537,600 in 2017, followed by Australia $402,600.

The UK will lose 63,000 dollar millionaires over the next five years as a result of Brexit, while the rest of the world creates eight million more, according to a survey of global wealth. Despite its plurality of millionaires, the U.S.'s median wealth of $55,876 puts it 21st place in the world, alongside Austria and Greece. "But we find that millennials face particularly challenging circumstances".

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.

Credit Suisse has been slapped with a $135 million fine by the top financial regulator in NY, which found a long pattern of unsafe and unsound practices in the bank's foreign exchange (FX) business from at least 2008 to 2015.

The report showed that there are now more than 36 million global millionaires in dollar terms. Issues hurting Millennials were tighter mortgage rules, growing house prices, increased income inequality and lower income mobility, all adding up to holding back wealth accumulation by young workers and savers in many countries. 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". That brings the total number of millionaires in the USA up to approximately 15,356,000, or about one in every 20 Americans.

This report was the eighth such annual report out of Credit Suisse, and the firm measures roughly 4.8 billion adults over approximately 200 countries for its data.

Related:

Comments


Other news