Published: Wed, November 15, 2017
Business | By Max Garcia

Credit Suisse fined $135 million by United States for malpractices

Credit Suisse fined $135 million by United States for malpractices

Credit Suisse finds that across all global regions, wealth inequality has increased from 2007 to 2016.

The total wealth in the world grew by six percent over the past 12 months to $280 trillion, marking the fastest wealth-creation since 2012, according to a new report from Credit Suisse.

"Looking at the bottom of the wealth distribution, 3.5 billion people - corresponding to 70 percent of all adults in the world - own less than 10,000 USA dollars", said the report.

Credit Suisse says emerging economies are expected to generate wealth at a faster pace than their developed counterparts and are likely to achieve a 22 percent share in global wealth at the end of the next five-year period.

Meanwhile, 70 per cent of adults - 3.5 billion people - own less than $14,547 in assets and account for 2.7 per cent of wealth.

Early this year, USA authorities announced a $5.28 billion settlement with Credit Suisse over its role in the sale of the kind of toxic securities that led to the global financial crisis of 2008.

The wealthiest one percent of the world's population now owns more than half of the world's wealth. In contrast, the world's poor are mostly found in developing nations like India and Africa for example, where a large majority of adults - over 90 percent to be exact - are living on less than $10,000.

The future may, however, be rosier for those with less wealth, according to the report. And 0.5% of us have wealth over $100,000.

Based on this updated forecast, global wealth is anticipated to reach 341 trillion USA dollars by 2022. "For many residents of low-income countries, life membership of the base tier is the norm rather than the exception".

Not everyone expects to acquire such wealth, however, especially millennials.

The study also found that millennials face a significant disadvantage compared to older generations. 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.

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