The problem with Credit Suisse and banking sector. - page 2.

Alpha Marine

sr. member

Activity: 686

Merit: 332

Quote from: be.open on March 16, 2023, 02:29:37 AM

The Swiss National Bank (SNB), together with the Swiss Financial Market Supervisory Authority, issued a press release stating that the problems of some banks in the US do not pose a risk to Swiss banks. And Credit Suisse has everything in order - it meets the requirements for capital and liquidity.

Well, CS, for its part, immediately announced its intention to get access to the SNB credit line in the amount of $54 billion. "Which will certainly support business and customers."

The collapse of the global financial system is temporarily delayed.

Saying Credit Suisse has everything under control just shows that they have nothing under control. Credit Suisse has not had anything under control for a very long time. They've always been in one scandal or the other. When they're not in scandals they're in one financial trouble or the other. This is not the first time they're in a mess, the only difference is this time around they're in a very big mess. It's a surprise it took them so long to get to this level because they lost the trust of the public a long time ago.

DainSLane

full member

Activity: 784

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Thank you for sharing your insights about the problem with Credit Suisse events affecting and the wider banking sector. The situation does indeed seem concerning, especially with the delay of the annual report and weaknesses in internal control being identified. It's important for investors to keep a close eye on developments and assess the risks carefully before making any investment decisions. It's also good advice to exercise caution and wait for more information before taking any action, as the market can be unpredictable.Overall, it's important for investors to carefully evaluate the risks and potential rewards of investing in the banking sector, and to stay informed about developments that may impact their investments. Thank you again for sharing your thoughts.

davis196

hero member

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Quote

But could we truly trust their press releases saying that everything is "secure, and safe"? I believe not, and we simply shouldn't trust them. Everyone should get their money out. Because, why would they need a $54 billion credit line?

The first clues that came out about Credit Suisse's problems were back during February, and I believe that it will not be the last.

Plus did you know that the Federal Reserve can also give credit lines to eligible FOREIGN BANKS?

1.The thing you are describing is called "bank run" or "bank panic" and I wouldn't recommend it to anyone, who has deposited any money in a bank.
If everyone gets their money out of Credit Swiss, the bank will have to default. Most depositors probably won't get their money back, unless their deposits aren't guaranteed by the government. Credit Swiss will get help from the Swiss central bank and they will have enough liquidity to payout some deposits(and maybe some short term debts) so that the possibility of a bank run will be neutralized.
2.The Federal Reserve could lend money to whoever they want, even to foreign banks. I don't see a problem here. Lending money isn't the same as giving money away for free. Grin

Wind_FURY

legendary

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Quote from: be.open on March 16, 2023, 02:29:37 AM

Quote from: crypticj on March 15, 2023, 10:23:58 PM

I think you all noticed that the stock market went down again and this time it's because of Credit Suisse.
It is still one of the biggest banks in Europe so the European banking sector has some problems too.

Their bonds, CDS, everything is going down and it's bad news not just for people from Europe but for everyone cos this is international.

Credit Suisse had some problems in previous years but this time it's wild. They delayed their annual report and announced that they have weaknesses in internal control which is awful for the bank. And the largest shareholders started saying that they won't give any money to Credit Suisse. People are withdrawing from this bank for the last 3 months but now it's got even worse.

Because risk is getting higher, people move away from banks to invest in more stable assets. The US is helping banks to bail out depositors but banks still have to keep credit flowing which is pretty hard considering the loss of trust in this sector.

I think the best decision right now is to wait for what will happen next because it's pretty hard to predict where the market will move next.

The Swiss National Bank (SNB), together with the Swiss Financial Market Supervisory Authority, issued a press release stating that the problems of some banks in the US do not pose a risk to Swiss banks. And Credit Suisse has everything in order - it meets the requirements for capital and liquidity.

Well, CS, for its part, immediately announced its intention to get access to the SNB credit line in the amount of $54 billion. "Which will certainly support business and customers."

The collapse of the global financial system is temporarily delayed.

But could we truly trust their press releases saying that everything is "secure, and safe"? I believe not, and we simply shouldn't trust them. Everyone should get their money out. Because, why would they need a $54 billion credit line?

The first clues that came out about Credit Suisse's problems were back during February, and I believe that it will not be the last.

Plus did you know that the Federal Reserve can also give credit lines to eligible FOREIGN BANKS?

Quote

Borrower Eligibility: Any U.S. federally insured depository institution (including a bank, savings association, or credit union) or U.S. branch or agency of a foreign bank that is eligible for primary credit (see 12 CFR 201.4(a)) is eligible to borrow under the Program.

https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20230312a1.pdf

"U.S. Branch", OK!

Cool

be.open

copper member

Activity: 2226

Merit: 915

White Russian

Quote from: crypticj on March 15, 2023, 10:23:58 PM

I think you all noticed that the stock market went down again and this time it's because of Credit Suisse.
It is still one of the biggest banks in Europe so the European banking sector has some problems too.

Their bonds, CDS, everything is going down and it's bad news not just for people from Europe but for everyone cos this is international.

Credit Suisse had some problems in previous years but this time it's wild. They delayed their annual report and announced that they have weaknesses in internal control which is awful for the bank. And the largest shareholders started saying that they won't give any money to Credit Suisse. People are withdrawing from this bank for the last 3 months but now it's got even worse.

Because risk is getting higher, people move away from banks to invest in more stable assets. The US is helping banks to bail out depositors but banks still have to keep credit flowing which is pretty hard considering the loss of trust in this sector.

I think the best decision right now is to wait for what will happen next because it's pretty hard to predict where the market will move next.

The Swiss National Bank (SNB), together with the Swiss Financial Market Supervisory Authority, issued a press release stating that the problems of some banks in the US do not pose a risk to Swiss banks. And Credit Suisse has everything in order - it meets the requirements for capital and liquidity.

Well, CS, for its part, immediately announced its intention to get access to the SNB credit line in the amount of $54 billion. "Which will certainly support business and customers."

The collapse of the global financial system is temporarily delayed.

crypticj

sr. member

Activity: 873

Merit: 268

I think you all noticed that the stock market went down again and this time it's because of Credit Suisse.
It is still one of the biggest banks in Europe so the European banking sector has some problems too.

Their bonds, CDS, everything is going down and it's bad news not just for people from Europe but for everyone cos this is international.

Credit Suisse had some problems in previous years but this time it's wild. They delayed their annual report and announced that they have weaknesses in internal control which is awful for the bank. And the largest shareholders started saying that they won't give any money to Credit Suisse. People are withdrawing from this bank for the last 3 months but now it's got even worse.

Because risk is getting higher, people move away from banks to invest in more stable assets. The US is helping banks to bail out depositors but banks still have to keep credit flowing which is pretty hard considering the loss of trust in this sector.

I think the best decision right now is to wait for what will happen next because it's pretty hard to predict where the market will move next.

Topic: The problem with Credit Suisse and banking sector. - page 2. (Read 233 times)