Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out

[JackAlabama]

Well, well, I don't think Credit Suisse will go anywhere... that is my prediction.

They got a bailout by snb as I already hinted before. "Exactly as predicted"

https://www.washingtonpost.com/business/2023/03/15/svb-banking-credit-suisse-stocks/

 

[uplana]

Sure, still they will be here tomorrow and next year. Will be fun to read this thread in 5 or 10 years to see who predicted the truth

 

[JackAlabama]

Sure, still they will be here tomorrow and next year. Will be fun to read this thread in 5 or 10 years to see who predicted the truth

Indeed. My crystal ball tells me:

The big banks will all get bailouts, depositors made whole. Shareholders can get shafted if they have not already been and eventually could profit from the bailouts...
Fiat debasement and (semi) hidden high inflation will be the modus operandi.

Credit suisse is very important for the location its in, so no politician will want to let if fail and deal with the immediate fallout. It would result in many unemployed and many angry people who can vote.

This applies to every bank. High risk for specialized and small banks (like private banks etc which do not enjoy a big local footprint), there I can see a risk for only getting the FDIC-insured amount back since A) only a niche audience banks there which is often hated (rich or some segment like tech or crypto bros) and B) the 50 employees working there do not matter for the political process.

 

[MiddleEuroAsia]

As expected -> Swiss National Bank says it will provide Credit Suisse with liquidity if necessary

Well, they did.

Credit Suisse to borrow up to nearly $54 billion from Swiss National Bank

Credit Suisse announced it will be borrowing up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.

www.cnbc.com

How much longer will they survive? To be frank, this bank should have closed down a while ago. I remember how desperate they were when I visited their representative office in EG a couple of years ago and they explicitly said to me, "Don't ask, don't tell." I was surprised tbh. I'm used to dealing with tellers who behave similarly, but not so blatantly.

 

[Jorozey]

JPMorgan Says Fed’s Loans Will Provide $2 Trillion of Liquidity

The Federal Reserve’s emergency loan program may inject as much as $2 trillion of funds into the US banking system and ease the liquidity crunch, according to JPMorgan Chase & Co.

www.bloomberg.com

 

[Martin Everson]

They got a bailout by snb as I already hinted before. "Exactly as predicted"

https://www.washingtonpost.com/business/2023/03/15/svb-banking-credit-suisse-stocks/

You got it right Fair play.

I wonder how much of that credit line they will actually need .

 

[JackAlabama]

You got it right Fair play.

I wonder how much of that credit line they will actually need .

Thanks. Just a lucky guess.
I could imagine they would need much more.