They came out and said they had a "material weakness" in their financial statements for 2021 and 2022 is what started it.
Credit Suisse shares sink as ‘material weaknesses’ found in financial reporting
The SEC conversation related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”
In the Tuesday annual report, Credit Suisse revealed that it had identified “certain material weaknesses in our internal control over financial reporting” for the years 2021 and 2022.
These issues related to a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements” and various flaws in internal control and communication.
Despite this, the bank said that it was able to confirm that its financial statements over the years in question “fairly present, in all material respects, [its] consolidated financial condition.”"
Credit Suisse said its net asset outflows had "not yet reversed," and that "material weaknesses" were identified in its financial reporting processes.