How To Help Your Kids Develop An Entrepreneurial Mind

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Every parent hopes they have a genius on their hands, let’s be honest! But what if you could encourage your child’s brilliant mind to get them started early in life with an entrepreneurial attitude? That’s exactly what the folks at www.teiyu.co.uk offer. Teiyu use a storytelling approach to build an entrepreneurial mindset in children…and you can find out more below.

Because they believe, as we do, that it’s possible to help nourish kids in developing an overall leadership attitude and skillset.

  1. Teach Them About Money Early On
  2. Encourage A Leadership Attitude
  3. Inspire Creative Thinking
  4. Help Them Develop Excellence 
  5. More Ways Kids Can Make Money

Teach Children About Money Early On

Help your kid make millions by teaching them early on

At school, we hardly get any financial education at all. Sure, we’re taught maths – but there’s no real insight into how percentages (interest rates) and sums (budgeting) really impact our lives outside of the classroom.

Teaching your children about money early in their development doesn’t mean giving them lectures, either! You could start by demonstrating the importance of saving, by giving pocket money each week. For older children, what about showing them how bills work – raise their pocket money allowance, but take some back to pay ‘bills’ (you can sneak it into a savings account for them, if you like!).

Another way to encourage children to think about money is to include them in financial activities. When you go grocery shopping, for example, take a calculator. Tell them your total budget and ask them to monitor whether you’re sticking to it. Or, if you go to a restaurant, give them a budget to spend on their meal and see what they can get with it from the menu.

When they understand how money makes the world go round, it’s much easier to encourage them to consider how they want to make their own money. You can, for example, exchange a few pounds for chores they complete around the house. For older children, encourage them to take on a part-time job – that could be making and selling crafts, taking on a paper round (they still exist!), or helping older neighbours with their shopping or gardening.

 

Encourage a Leadership Attitude

When your child understands how money works, it’s a good time to start encouraging their entrepreneurial mindset. This starts with a leadership attitude!

Teiyu is a great resource for children who want to get ahead. It’s a storytelling strategy about a lizard called Teiyu, who helps children solve problems in the land of Teguria. It’s a positive, encouraging experience that helps children embrace problem-solving strategies on their own.

Other ways to encourage a leadership attitude is to volunteer with community groups, or attend other groups such as Scouts or an after-school sports team. This helps develop important skills like communication, teamwork, and delegation – as well as helping your child identify their own strengths along the way.

 

Inspire Creative Thinking

Inspire creative thinking to help your kid make millions

Another key attribute to help your kid make millions in the future is to encourage creativity. Abstract problem-solving is a perfect way to help your child identify unique ways to reach a solution. You can do this through techniques such as the Teiyu stories, as well as showing them real-world problems that need a solution.

For example, let’s say you have an arts and crafts afternoon ahead of you. Let your children build a castle from a shoebox and cardboard – but tell them it has to do certain things! Does the drawbridge go up and down? Is there a secret entrance? Things like this will help your child take instruction but think creatively to reach the solution.

Creative thinking when it comes to money is another step towards an entrepreneurial mindset. For older children, you could ask what they want to buy with their pocket money. You can work out with them how long it will take to save up for it – and get them to find ways they could make more money to save faster. This might be, for example, selling some of their old clothes and toys that they’ve grown out of at a car boot sale. When they see how much faster they can get the thing they want to buy, if they make money as well as save it, you’re encouraging creative thoughts around money from a young age.

 

Help Your Child Develop Excellence

Being brilliant at something is the most notable attribute of all entrepreneurs. For some, it might be technological savvy. For others, they could be great with social skills. Help your child find their passion – and the skills they’re great at – and nurture them.

This will help them to develop excellence in these habits, skills, or hobbies over time. As they become confident in these areas, it’s easier for them to identify their strengths and how they might be able to use them to make money through an entrepreneurial mindset. One great example of this is the 12-year-old investor we spoke to on the MoneyMagpie podcast! He realised very quickly that understanding the stock market was a great skill, and he nurtured it, and is already a leading example to other children about how to invest wealth!

 

Special offer

Right now, MoneyMagpie readers are able to get an exclusive 50% off the Happy Pack. All you have to do is use the discount code HOPE50 at the checkout.

 

More Ways Kids Can Make Money

There are lots of ways to include your children from an early age when it comes to understanding (and making) money. Here are a few more ideas:

The post How To Help Your Kids Develop An Entrepreneurial Mind appeared first on MoneyMagpie.

The 6 richest Americans are worth more than the GDP of 13 US states combined, including Delaware, Maine, and Hawaii

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Tesla CEO Elon Musk and Amazon CEO Jeff Bezos.

  • According to Forbes, six Americans are worth more than $100 billion, making them centibillionaires.
  • Their combined fortune of $815 billion is just over the collective GDP of the US’ 13 poorest states.
  • Amazon CEO Jeff Bezos is worth nearly $200 billion, beating the 2020 GDP of Utah.
  • See more stories on Insider’s business page.

America’s richest keep getting richer.

The six richest Americans are worth more than the GDP of 13 states combined, including Delaware, Maine, and Vermont, according to data from Forbes and the US Department of Commerce.

The publication’s rich list contains six “centibillionaires” – people worth at least $100 billion each.

In a new report, the Institute for Policy Studies (IPS) and Americans for Tax Fairness (ATF) said this meant that individually, each of the centibillionaires had a net worth bigger than the GDP of each of the 13 poorest US states.

Read more: 9 hurdles facing Biden’s $2.2 trillion infrastructure, jobs, and tax plan as Republicans pitch a less-pricey alternative

But calculations by Insider show that, collectively, these six centibillionaires have a collective fortune bigger than that of the 13 states combined.

Amazon CEO Jeff Bezos, Tesla CEO Elon Musk, Microsoft co-founder Bill Gates, Facebook CEO Mark Zuckerberg, Berkshire Hathaway CEO Warren Buffet, and Oracle founder and chairman Larry Ellison have a combined fortune of around $815 billion, per Forbes data from April 12.

US 10 richest people

This is just over the combined GDP of the 13 poorest US states, according to 2020 data from the US Department of Commerce: Hawaii, New Hampshire, Idaho, Delaware, West Virginia, Maine, Rhode Island, North and South Dakota, Montana, Alaska, Wyoming, and Vermont.

Bezos is worth nearly $200 billion – just over the 2020 GDP of Utah.

Vermont has the lowest GDP of all the US states, at $32.8 billion in 2020, followed by Wyoming and Alaska, though this is largely due to their small populations.

Mississippi has the lowest GDP per capita, at $38.5 billion. It has high levels of poverty and a low median income, in part caused by its historic reliance on cotton agriculture.

The ATF and IPS also found that over the last 13 months, American billionaires increased their wealth by 55%, Insider’s Juliana Kaplan reported. In the second half of 2020, meanwhile, 8 million Americans fell into poverty, according to a study by the University of Notre Dame and the University of Chicago.

“We’re going to come out of the pandemic another degree of more unequal,” Chuck Collins, director of the Program on Inequality at IPS, told Kaplan.

Oxfam suggested wealth taxes could be a good option to reverse this. In December, academics published a study of 50 years of tax cuts for the wealthy that suggested “trickle-down” economics made inequality worse and didn’t lead to economic growth and employment.

Argentina became the first country to respond to the pandemic with a one-off “millionaire tax” approved by its Congress in December, which the government hopes will raise $3.78 billion to help pay for its pandemic response.

The US has also ramped up efforts to tax its highest earners.

Massachusetts Sen. Elizabeth Warren has proposed an “ultra-millionaire” tax on individual net worth above $50 million, while New York Gov. Andrew Cuomo included tax hikes for the state’s richest in his 2022 budget proposal.

President Joe Biden, meanwhile, has proposed raising the corporate tax to 28% as a way to fund his $2 trillion infrastructure plan. The package, which Biden hopes will overhaul the US economy, includes investments in transportation, water, broadband, power, housing, and education.

Read the original article on Business Insider

China’s digital currency will be distributed using a two-tiered system to help get it into consumers’ hands

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Chinese digital currency.

  • China has become the first major economy to roll out a digital currency.
  • The e-yuan will bypass the global financial system.
  • Economists, however, warn it could endanger the US dollar long-term.
  • See more stories on Insider’s business page.

The People’s Republic of China (PBOC) introduced its first blockchain-powered digital currency controlled by its central bank, The Wall Street Journal first reported. The project took seven years to complete since work began in 2014.

The e-yuan is a government-sponsored virtual currency designed to trace all movements of money. For example, the state will know full details about what someone purchased and where, FXStreet reported.

It is money that isn’t associated with the global financial system, where the US dollar has dominated since World War II. Its main aim is to gain more centralized control and replace some of the cash and coins in circulation, CNBC reported. It is also a faster and cheaper way to make domestic and international transactions.

Up to 750,000 people have been chosen by a lottery system, allowing them to spend their digital yuan in both offline and online stores using an app, per the Journal. Food and drink giants including Starbucks and McDonald’s reportedly moved quickly to accept the new currency.

China is the second country and first major economy to roll out a digital currency. The first country was the Bahamas Central Bank, according to Bloomberg.

Distribution of the digital yuan will involve a two-tiered system. It will be dispensed to commercial banks who will then be responsible for getting the currency into consumers’ hands, CNBC reports.

PBOC also suggested the two-tier structure can “avert disintermediation in the financial sector” because the central bank will not be in competition with the commercial banks, per CNBC.

The virtual currency is held in cyberspace. It is available on a card, or an individuals’ mobile phone screen with a picture of Mao Zedong, mirroring the paper money. Spending doesn’t require an internet connection.

Support for the digital yuan is not unanimous as some think it could potentially threaten the future of the US dollar, MarketWatch suggested.

John Lipsky, a former International Monetary Fund staffer, told The Wall Street Journal: “Anything that threatens the dollar is a national-security issue. This threatens the dollar over the long term,” in a feature that described the virtual yuan as “a re-imagination of money that could shake a pillar of American power.”

Does this mean there is a digital dollar on the way?

Jerome Powell, the federal reserve chairman, thinks so, telling Congress that it is looking carefully at issuing one. It is now a “high-priority project for us,” he said.

Read the original article on Business Insider

The youngest billionaire in the world right now is a teenager in Germany

drogerie
Kevin David Lehmann inherited 50% of his father’s stake in German drugstore dm-drogerie markt.

  • The youngest billionaire in the world right now has a German drugstore chain to thank for his fortune.
  • That’s according to Forbes‘ annual billionaire ranking, which was released on April 6.
  • The teen, 18-year-old Kevin David Lehmann, is worth $3.3 billion and inherited his wealth from his dad.
  • See more stories on Insider’s business page.

It’s good to be Kevin David Lehmann.

Lehmann, 18, is worth $3.3 billion after inheriting stakes in German drugstore chain dm-drogerie markt from his father, Guenther Lehmann. That’s according to Forbes’ 35th annual billionaires list, which was released on April 6.

Dm-drogerie markt, the source of Lehmann’s wealth, is the leading drugstore chain in Germany. It was founded in 1974. According to the company website, it employs over 41,000 people across more than 2,000 stores throughout Germany.

According for Forbes, neither Lehmann nor his father is actively involved in the company, and little is known about them. Insider has reached out to Dm-drogerie markt for comment. Lehmann could not immediately be reached for comment for this story.

The No. 2 spot among the world’s youngest billionaires in 2021 is held by 24-year-old Wang Zelong of China, who is worth $1.5 billion. The No. 3 and 4 spots are held by Norwegian sisters Alexandra and Katharina Andresen, who are 24 and 25 years old respectively and each worth $1.4 billion. They both own part of their family company, Ferd, a multibillion-dollar investment firm.

The low profile of the current youngest billionaire in the world – who has no discernible presence on any major social platform – stands in stark contrast to the previous titleholder. In the 2020 edition of Forbes’ billionaire ranking, the title was held by reality TV star and fashion mogul Kylie Jenner. While 23-year-old Jenner has fallen off Forbes’ 2021 billionaire ranking altogether, she was – controversially – named the world’s youngest self-made billionaire in 2019 at the age of 21.

Forbes’ list pulls together information on the world’s wealthiest people using stock prices and exchange rates as of March 5 and only considers those individuals whose net worths are higher than $1 billion. According to the list, there are now 2,755 billionaires in the world, more than there have ever been before.

Even after the pandemic year of 2020, the world’s billionaires are also richer than they’ve ever been, though estimates of their collective gains vary. Per Forbes, the collective fortunes of the world’s billionaires increased by $8 trillion to a whopping $13.1 trillion. Meanwhile, a report from the Institute for Policy Studies found that the world’s billionaires added $4 trillion – substantially less than Forbes’ estimate – to their wealth from March 18, 2020, to March 18, 2021.

Read the original article on Business Insider

Central banks must start issuing digital currencies in the coming years because cash will become irrelevant, UBS chief economist says

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  • Central banks need to issue digital currencies as cash will become outdated, a UBS chief economist said.
  • These digital currencies won’t operate like cryptocurrencies and will have no wild swings in value, Paul Donovan said.
  • The supply of an officially backed coin depends on a central bank’s authority to regulate the currency’s spending power.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Central banks will soon need to issue digital currencies as the use of cash slowly becomes irrelevant, according to UBS chief economist Paul Donovan.

“Central bank digital currencies are likely to start becoming part of individual economies’ payment systems in the coming years,” he said in a note published this week.

People are using physical forms of money, like notes and cash, much less than before. Moreover, about half of Sweden’s banks no longer accept cash and its economy is expected to go cashless by 2023.

“We wave debit cards and mobile devices around with the reckless abandon of a first year student at Hogwarts trying out a wand, magically paying for things without ever having to touch cash,” Donovan said, referring to the boarding school in the “Harry Potter” series of children’s books.

Donovan laid out specific differences between how CBDCs would operate compared with cryptocurrencies. CBDCs would be interchangeable with notes and coins in circulation, accepted for tax payments, and wouldn’t have wild fluctuations in value – unlike typical crypto, such as bitcoin. Officially backed digital currency supply could change depending on the central bank’s ability to regulate the spending power of the currency, he said. Meanwhile, cryptocurrencies are decentralized and cannot be controlled by any one party.

He also said digital cash is a direct claim on the private bank to which its account is tied, and not on the government. This means government-produced money is becoming less significant, while digital money produced by the private sector is increasing in importance.

“If central banks want to stay relevant as cash becomes less relevant, they might have to consider entering the world of digital money,” he said.

China is among the leading economies looking closely at CBDCs. The People’s Bank of China aims to become the world’s first to issue a digital currency as part of a push to reduce its reliance on the dollar-denominated financial system, according to Reuters.

Federal Reserve Chairman Jerome Powell said last month a potential digital dollar is a “high priority” project for the US. But he thinks CBDCs should exist alongside cash and other forms of money, rather than replace them entirely.

Read the original article on Business Insider

America’s wealthiest earners appear to be hiding billions of dollars from the IRS, study finds

Dubai party coronavirus
Tourists party on a yacht in Dubai Creek on February 4, 2021.

  • The top 1% of US earners aren’t reporting about a fifth of their income, new research shows.
  • Under-reporting is even higher among the top 0.1%, the paper found.
  • Offshore accounts and pass-through businesses are used to avoid taxes.
  • See more stories on Insider’s business page.

The top 1% of the highest-earning American households fail to report around 21% of their income, according to new research by the Internal Revenue Service (IRS) and academic economists.

This is a far larger percentage than the IRS’s methods had previously assumed, according the working paper published Sunday and first reported on by the Wall Street Journal. ]

Out of the 21% of unreported tax, around 6 percentage points are linked to sophisticated tax evasion that is rarely detected in random audits, the paper, by researchers at the IRS as well as schools including the London School of Economics, Carnegie Mellon, and the University of California at Berkeley, said.

These high-income households avoid paying tax through a number of ways, researchers found, adding to a bevvy of recent insight into wealth secrecy and tax avoidance. One strategy is using tax havens, where super rich individuals keep money in offshore accounts. Such evasion “increases the top 1% income share” in the US, the paper said.

Read more: Billionaire Tom Golisano says the Warren wealth tax would be ‘triple taxation’

Under-reported income is almost twice as high among the top 0.1% of earners, largely because of tax evasion through foreign bank accounts and pass-through businesses, like partnerships and S-corporations, the report says. The research found offshore accounts made up about $15 billion of evaded taxes, with the top 0.1% accounting for most of that.

To be in the top 1% of earners in the US, a family must meet an annual income threshold of $421,926, according to 2018 data from the Economic Policy Institute. But the average annual earnings for these top earners is actually $1,316,985.

For a decade, audit rates and staffing at the IRS have declined because of budget cuts, but Democrats and President Joe Biden are seeking to change that by expanding the agency, the Journal said, noting that additional enforcement could increase tax revenue by $1 trillion over a decade.

Last week, Biden said he was considering a tax hike for the wealthiest Americans in order to fund an infrastructure and jobs package. Those making more than $400,000 could see taxes raised to nearly 40% under the plan.Earlier in March, Democrats including Sen. Elizabeth Warren proposed an ultramillionaire tax on the top .05% of earners, which would raise $1.4 trillion over a decade, based on Forbes billionaire data.

Read the original article on Business Insider

The top 1% of high-income households in the US fail to report 20% of their income, a new paper reveals

Dubai party coronavirus
Tourists party on a yacht in Dubai Creek on February 4, 2021.

  • The top 1% of US earners aren’t reporting about a fifth of their income, new research shows.
  • Under-reporting is even higher among the top 0.1%, the paper found.
  • Offshore accounts and pass-through businesses are used to avoid taxes.
  • See more stories on Insider’s business page.

The top 1% of the highest-earning American households fail to report around 21% of their income, according to new research by the Internal Revenue Service (IRS) and academic economists.

This is a far larger percentage than the IRS’s methods had previously assumed, according the working paper published Sunday and first reported on by the Wall Street Journal. ]

Out of the 21% of unreported tax, around 6 percentage points are linked to sophisticated tax evasion that is rarely detected in random audits, the paper, by researchers at the IRS as well as schools including the London School of Economics, Carnegie Mellon, and the University of California at Berkeley, said.

These high-income households avoid paying tax through a number of ways, researchers found, adding to a bevvy of recent insight into wealth secrecy and tax avoidance. One strategy is using tax havens, where super rich individuals keep money in offshore accounts. Such evasion “increases the top 1% income share” in the US, the paper said.

Read more: Billionaire Tom Golisano says the Warren wealth tax would be ‘triple taxation’

Under-reported income is almost twice as high among the top 0.1% of earners, largely because of tax evasion through foreign bank accounts and pass-through businesses, like partnerships and S-corporations, the report says. The research found offshore accounts made up about $15 billion of evaded taxes, with the top 0.1% accounting for most of that.

To be in the top 1% of earners in the US, a family must meet an annual income threshold of $421,926, according to 2018 data from the Economic Policy Institute. But the average annual earnings for these top earners is actually $1,316,985.

For a decade, audit rates and staffing at the IRS have declined because of budget cuts, but Democrats and President Joe Biden are seeking to change that by expanding the agency, the Journal said, noting that additional enforcement could increase tax revenue by $1 trillion over a decade.

Last week, Biden said he was considering a tax hike for the wealthiest Americans in order to fund an infrastructure and jobs package. Those making more than $400,000 could see taxes raised to nearly 40% under the plan.Earlier in March, Democrats including Sen. Elizabeth Warren proposed an ultramillionaire tax on the top .05% of earners, which would raise $1.4 trillion over a decade, based on Forbes billionaire data.

Read the original article on Business Insider

Drinks maker Bolthouse Farms is offering 1,800 hourly workers a $500 bonus to get a COVID-19 vaccine

coronavirus vaccine recipient
A coronavirus vaccination site in the US.

  • Bolthouse Farms is paying full-time hourly workers a $500 bonus to get the COVID-19 vaccine.
  • So far, 1,100 California employees out of 1,800 have signed up for the shot.
  • Before the $500 bonus, Bolthouse paid staff an extra $100 for being essential workers during the pandemic.
  • See more stories on Insider’s business page.

Jeff Dunn, CEO of Bolthouse Farms, is offering his full-time hourly employees $500 to get a COVID-19 vaccine, the Wall Street Journal first reported Sunday.

Bolthouse employees must submit a photo of their vaccination cards to the company after they’ve had their shot to receive the bonus, the Journal reported.

The California-based company, known for its smoothies and dressings, has poured tens of millions of dollars into COVID-19 safety measures, including testing, protective clothing, paid time off, and staff cover for anybody who is self-isolating, Dunn told the Journal.

Bolthouse also hosts vaccine events weekly at its main plant in Kern County to deliver shots on-site, Dunn said.

Dunn said his philosophy was to “go bigger now because it gives us the best chance at reaching herd immunity quickly.”

Before the $500 incentive for a COVID-19 shot, Bolthouse paid its full-time hourly workers an extra $100 every week for their role as essential workers during the pandemic. This stopped once the vaccine bonus was introduced, Dunn said.

Workers at Bolthouse are a priority group for getting shots because it is a food and agriculture company, and it has secured shots for all its California essential workers, Dunn said.

The company has about 1,800 hourly workers at its Kern County plant, and 1,100 have signed up for the vaccine, the Journal reported. So far, 475 employees have received at least one shot.

The company also employs about 300 office workers in the area.

Bolthouse hopes to reach “herd immunity”

The company estimates that between 1,300 and 1,400 workers at the plant need to be vaccinated to reach “herd immunity,” which is when immunity in a population, either through vaccination or infection, stops a virus spreading and gives protection to the group.

Company executives told the Journal that it was difficult to know when Bolthouse would reach herd immunity because vaccine supply – and vaccine hesitancy amongst employees – was always fluctuating.

Dunn said the company was expecting a certain level of reluctance, because about 80% of its workforce is Latino. Some polls have suggested that Latino people are more likely to be hesitant about getting vaccines, because of skepticism and mistrust of the US health system, triggered by historical injustices.

Bolthouse started teaching staff about COVID-19 in tents in its plant parking lot before it offered the vaccine on-site, Dunn said.

“You just gotta reach out and help people and understand their concerns,” he said. He hoped that there would be a chain reaction once employees start seeing colleagues get immunized safely at work, he added.

Dunn also told staff that some aspects of work would be easier if herd immunity is reached on the plant, the Journal reported.

Read the original article on Business Insider

The IRS commissioner told lawmakers that child tax credit payments may not be issued monthly – and may not start in July

pregnant woman and child
The child tax credit is an allowance for parents within certain income limits.

  • The $3,000 child tax credit payments approved in the pandemic relief bill may not be sent monthly.
  • The payments, which were meant to start in July, may also be delayed, according to the IRS.
  • The child tax credit is a government-approved grant for parents with certain income limits.
  • See more stories on Insider’s business page.

The child tax credit payments approved in the most recent coronavirus relief bill may not be sent to parents monthly, and may not even start in July, according to Charles Rettig, the IRS commissioner.

The child tax credit is an allowance for parents within certain income limits. American citizens who qualify for the child tax credit can get part of it as recurring cash payments.

On March 11, President Joe Biden signed into legislative action the $1.9 trillion American package, kickstarting a massive government rescue effort for struggling families, in which the child tax credit was significantly increased.

The legislation means families will be eligible to receive $3,000 annual benefits per child from ages 6 to 17, and $3,600 per child under the age of 6 for the 2021 tax year.

The child tax credit payments were scheduled to start in July as monthly payments, instead of a lump sum. That now may not happen, especially since the IRS has extended the tax-filing season for citizens to May 17 from April 15, Rettig said during a hearing with the House Ways and Means Committee on Thursday.

The IRS now only has limited time to devote to implementing and initiating a portal for the program, which must happen by July 1. Rettig said: “I don’t have the resources to devote to that portal until the filing season ends. It might be a challenge to get it monthly right out of the box.”

The commissioner also specified that in the final bill, payments were changed to be sent periodically as opposed to monthly, to give the agency more flexibility. “We’re focused on trying to get these payments out to the people in a meaningful manner and a meaningful timeframe,” he said at the hearing.

Read the original article on Business Insider

Credit Suisse is overhauling its asset management business and has suspended bonuses after Greensill collapsed

Credit Suisse
The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020. Picture taken October 28, 2020.

  • Credit Suisse is shaking up its asset management business following the collapse of Greensill.
  • Ulrich Körner will become the new CEO of the bank’s asset management business from April 1.
  • Three senior asset management employees have temporarily stepped aside.
  • See more stories on Insider’s business page.

Credit Suisse is overhauling its asset management business as it faces regulatory investigations into its dealings with Greensill Capital, warning on Thursday that its results and client confidence could be hit by the finance firm’s collapse.

Switzerland’s second-biggest bank and its asset management arm are reeling from the implosion of around $10 billion of funds related to British supply chain financier Greensill, heaping pressure on CEO Thomas Gottstein.

Credit Suisse said in its annual report that Swiss regulator FINMA was looking into the matter and reviewing its impact in relation to the bank’s so-called Pillar 2 buffer, which is capital banks hold against risks.

“We can confirm that we have also imposed a Pillar 2 buffer in this context as stated by the bank in its annual report,” FINMA said, adding it was in contact with other authorities.

Credit Suisse stuck to its guidance on capital and said plans to buy back at least 1 billion Swiss francs ($1.1 billion) worth of stock this year were still on.

The bank named Ulrich Koerner as its new head of asset management and said it would separate the business into its own division from April 1. It has been part of the international wealth division run by Philipp Wehle.

Koerner will return to Credit Suisse from arch-rival UBS, where he most recently served as adviser to the CEO from 2019 to 2020. He ran UBS Asset Management from 2014 to 2019. Koerner was previously a senior executive at Credit Suisse Financial Services and ran the Swiss business.

Current asset management head Eric Varvel, who is also chairman of Credit Suisse’s investment bank and head of its U.S. holding company, will focus on his other roles.

Credit Suisse’s annual report said some unidentified fund investors had threatened litigation over the Greensill affair and the ultimate cost may be “material” to operating results.

“The portfolio manager has been informed that certain of the notes underlying the funds will not be repaid when they fall due,” it added.

“We might also suffer reputational harm associated with these matters that might cause client departures or loss of assets under management,” it said.

Three senior asset management employees who helped oversee the Greensill funds have temporarily stepped aside.

The annual report showed the bonuses for a number of senior employees involved, “up to and including Executive Board members”, had been suspended.

Credit Suisse shares gained 2.5%.

The new structure bucks a trend for blending Credit Suisse products and services in a seamless offering to its wealthy clients. It could, however, help address suggestions that the model lent itself to internal conflicts of interest.

Asset Management lost 39 million Swiss francs ($42 million)before taxes last year after a hefty writedown on an investment in a U.S. hedge fund.

Read the original article on Business Insider