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Credit Suisse going bankrupt?

GeneralGogol

GeneralGogol

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Jul 2, 2022
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Antarctyka
#1
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#7
azb1 said:
Let's see how many days it will survive ???
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Lol....it's not that bad I hope. However CS is a very large correspondence banking provider also. I can think of one bank off head that switched over to CS as their main correspondence banking provider in the last few years. Medirect in Malta is the one :confused:. A CS trading halt could impact access to most currencies for them or cause liquidity problems for their operations. They use a Euro nostro account at CS as their default Euro payment account also rather than their direct connection to ECB also :rolleyes:.

https://www.medirect.com.mt/wp-content/uploads/Correspondent-Bank-Network.pdf
Now magnify that by the many banks around the world that also use CS for correspondence banking and you could end up with a short lived liquidity crunch globally, failed payments, credit defaults etc if a smooth bail-in does not happen nai¤%.
 
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#8
JohnnyDoe said:
What about Deutsche Bank?
Is 2008 coming again in a bigger and more entertaining fashion?
Click to expand...
Just this time we have bitcoin.

Martin Everson said:
Lol....it's not that bad I hope. However CS is a very large correspondence banking provider also. I can think of one bank off head that switched over to CS as their main correspondence banking provider in the last few years. Medirect in Malta is the one :confused:. A CS trading halt could impact access to most currencies for them or cause liquidity problems for their operations. They use a Euro nostro account at CS as their default Euro payment account also rather than their direct connection to ECB also :rolleyes:.

https://www.medirect.com.mt/wp-content/uploads/Correspondent-Bank-Network.pdf
Now magnify that by the many banks around the world that also use CS for correspondence banking and you could end up with a short lived liquidity crunch globally, failed payments, credit defaults etc if a smooth bail-in does not happen nai¤%.
Click to expand...
A local bail in and you have public unrest since many smes and pension funds bank with them.
Maybe bail in only the rich foreigners? Possible but it would severely harm Switzerland as banking magnet.

So snb will print money and all will be paid by inflation. The easiest and smoothest solution which as a nice side effect will send Bitcoin into the 6 digits measured in $.
 
#13

FINMA and the SNB issue statement on market uncertainty​


https://www.finma.ch/en/news/2023/03/20230315-mm-statement/
---- quote start

The Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank SNB assert that the problems of certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets. The strict capital and liquidity requirements applicable to Swiss financial institutions ensure their stability. Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will provide CS with liquidity.

FINMA and the SNB are pointing out in this joint statement that there are no indications of a direct risk of contagion for Swiss institutions due to the current turmoil in the US banking market.

Regulation in Switzerland requires all banks to maintain capital and liquidity buffers that meet or exceed the minimum requirements of the Basel standards. Furthermore, systemically important banks have to meet higher capital and liquidity requirements. This allows negative effects of major crises and shocks to be absorbed.

Credit Suisse meets regulatory capital and liquidity requirements​

Credit Suisse’s stock exchange value and the value of its debt securities have been particularly affected by market reactions in recent days. FINMA is in very close contact with the bank and has access to all information relevant to supervisory law. Against this background, FINMA confirms that Credit Suisse meets the higher capital and liquidity requirements applicable to systemically important banks. In addition, the SNB will provide liquidity to the globally active bank if necessary. FINMA and the SNB are following developments very closely and are in close contact with the Federal Department of Finance to ensure financial stability.

----- quote end

What's all the panic about?

....ok run with your money and don't look back eek¤%&
 
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#14
Switzerland is well regulated and after the crash in 2008 most of the major European countries have secured the banking network. No need to panic.
 
#16
And CS is still alive :p. Got a credit line from SNB i.e lender of last resort. I wonder if this will reverse their outflows, but only time will tell I guess.
 
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#17
Martin Everson said:
Lol....it's not that bad I hope. However CS is a very large correspondence banking provider also. I can think of one bank off head that switched over to CS as their main correspondence banking provider in the last few years. Medirect in Malta is the one :confused:. A CS trading halt could impact access to most currencies for them or cause liquidity problems for their operations. They use a Euro nostro account at CS as their default Euro payment account also rather than their direct connection to ECB also :rolleyes:.
Click to expand...
What would happen to the euro deposits at Medirect if CS goes bankrupt? Can Medirect simply choose another routing, or would the money be trapped for the time being, as with EPB?

(In the case of EPB, the money is trapped, but there is no alternative routing/correspondent bank available.)
 
#18
Marie Manila said:
What would happen to the euro deposits at Medirect if CS goes bankrupt? Can Medirect simply choose another routing, or would the money be trapped for the time being, as with EPB?
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Yes EPB situation would happen until issue is resolved. Money would be safe but nothing moves if a bank goes out of business until receiver says so. CS also provides correspondence banking for smaller Swiss banks etc. The scope of its failure would have had domino affect across Switzerland and the global financial system. If CS provided correspondence banking to lets guess a 100 banks around the world those banks would be stuck. Hence why banks like BOA , JPM and Citi, BARC etc that are major correspondence banks are just too big to fail and could cause systemic problems.

This being said if you look at some banks they hold multiple correspondence banks for each currency for this very reason i.e BOG has 5 USD correspondence bank accounts and 7 EUR correspondence bank accounts thu&¤#. I guess Medirect has a sweet heart deal with CS or maybe has backup banks but does not publish them as they are not in regular use.


https://conditions.bog.ge/en/bank/info/correspondent-banks
 
#20
kkein said:
Some are saying that they were sunk because they, like DB, dared to go do business in the US. Anyone can confirm?
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Credit Suisse is a convicted criminal enterprise that helped US tax payers avoid paying taxes. They pleaded guilty to this in US court in 2014. Don't think it was smart to run a bank in US while helping US tax payers using Swiss bank hide money from IRS :confused:.

https://www.justice.gov/opa/pr/cred...-and-assist-us-taxpayers-filing-false-returns
P.S Even found guilty in Switzerland over Cocaine cash laundering.

https://www.reuters.com/business/fi...edit-suisse-money-laundering-case-2022-06-27/
 
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