Credit Swiss...

[Ted Hoppe]

Sh!t may be hitting the fan. Bank is asking for money.

[Figment]

edit: disregard, I was thinking Deutsche

[Ted Hoppe]

Running out of money is a large problem in many banks. All the central banks are going to have to kick in.

[Paul Pless]

perspective:

• credit suisse has been in trouble for a long time, since the pandemic
• their largest investor is precluded by law from taking a larger stake in the bank than 10% - it is not that they are unwilling to invest more, it's that they are barred from doing so
  
  • worth noting the largest investor is the house of saud - that should tell you something
  
  
• this comes as no surprise to anyone in the financial industry
• by size of assets, credit suisse is not a very large bank on the global stage - not even in the top 100 globally, not even in the top seven banks in switzerland

[Ted Hoppe]

The bond market is moving. My friends at the federal reserve of San Francisco were on a conference call as we all took the ferry. They are quite concerned.

[Too Little Time]

Sh!t may be hitting the fan. Bank is asking for money.

Regulators made poor rules. And the whole game went South.

After 2008 regulators made the rule that sovereign bonds would be valued at face value not market value. Rules like that have always led to poor ends.

The US banking system may be sitting on $620 billion in mark to market losses. But they all look healthy because of that rule. European banks are in equally poor condition.

But overall the world is the same today as it was yesterday.

[Ted Hoppe]

60 Billion is a lot of dough to find to cover their losses. The Europeans are not happy. Tip of the iceberg with higher interest rates and more low mortgages on the books than bonds can cover.

Europe may become a huge upcoming Chinese buying spree in the next days. Travel is open and lots of cash to move from the Middle Kingdom.

[ERGR]

Three US banks have severe problems and your main worry is European banks?
/Erik

[NickW]

From https://www.bbc.co.uk/news/business-64964881 about 20 minutes ago.

The Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority said in a joint statement that strict rules applied to Swiss financial institutions "ensure their stability".


"The problems of certain banks in the US do not pose a direct risk of contagion for the Swiss financial markets," the regulators said.


"Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will provide [Credit Suisse] with liquidity."

Nick

[Chip-skiff]

Greed never sleeps. . .

[heimfried]

perspective: [...]

• by size of assets, credit suisse is not a very large bank on the global stage - not even in the top 100 globally, not even in the top seven banks in switzerland

This will not the only relevant criterion, may be.

[...]
Unlike SVB, which wasn’t even classed as systemically important in the US (until, in death, it was), nobody is in doubt about Credit Suisse’s status. It had a balance sheet of 530bn Swiss francs at the end of last year and is classed as a “globally systemically important financial institution”, which translates as one that is definitely capable of causing contagion. [...]

https://www.theguardian.com/business/nils-pratley-on-finance/2023/mar/15/credit-suisse-has-shot-itself-in-the-foot-and-wounded-the-global-banking-system

[Andrew Craig-Bennett]

The problem may not be the notorious Credit Suisse; it may be Swiss banking regulation.

[David G]

Three US banks have severe problems and your main worry is European banks?
/Erik

Some folks are magpies. Lacking any foundation, or overall perspective... they snatch at any shiny bit that pops up.

Banking was not an area I focused on when studying economics... but even I know that Credit Suisse and 'shady' are regarded as synonymous. Dodgy banking usually comes a cropper eventually.

[John of Phoenix]

“The first thing we do is, let’s kill all the lawyers.” - Shakespeare, 1596

"Then the banksters" - JOP, 1987, 1999, 2003, 2008, 2011, 2023

[Paul Pless]

​....