Is anyone concerned about Credit Suisse, following on from the US banks failing?

[isthisallnormal]

Apologies if there is a thread already but can't see any.

What do people think of this? How will this affect ordinary people and high street banks and economies?

I am. I have friends and family working there. That would be a lot of jobs to go if it went down.

I'm twitchy and paying attention. Could do without another 2008.

Trying not to get too worried but yes CS is worrying

Any thoughts on this now? It's interesting to read opinions from posters who have more knowledge on this than me, which is basically everyone

What exactly is it that people here are worried about regarding CS? I read the summary audit findings and it didn’t look devastating to me. Or is the worry more the effect that rumour can have? Admittedly that in itself is a concern, that banks (and the markets) rely so heavily on moment by moment public confidence.

Yes, that the markets seem to get wary easily and this sometimes seems like it has a domino effect? So that seems concerning to me?

But I don't have a good working knowledge of how it all works or how the global economic ecosystem affects individual economies.

So, it's reassuring to get a range of opinions and while some others are a bit uneasy, others seem confident it will not snowball into a 2008 situation.

@isthisallnormal I'm worried too but also not very knowledgeable. I've just messaged my son as he's doing his masters in economics so when he messages me back his normal 4000 word essay on why I'm wrong I'll cut and paste it here 😂

Credit Suisse is too big to fail…

www.fsb.org/wp-content/uploads/P231121.pdf

Hopefully regulators and Swiss National Bank are beavering away to nationalise in a cost effective way.

Loss of faith = counterparties don’t want to overexpose and depositors withdraw= downward spiral.

I am not sure what comfort has been given to depositors? Does anyone know? I wouldn’t be leaving my money there if I had some in that bank without guarantees.

It's very worrying and the start of things to come all over.

They won't be allowed to fail. They will get bailed out 100%.

However why anyone would give their money over to Credit Suisse or SoftBank I will never know.

I am sure they will get bailed out, but I would be pissed off as a Swiss tax payer. Because essentially a solid old fashioned Swiss bank became all Americanised US investment bank style and run to the ground over a number of years.

The Torie articles the Telegraph are running on Switzerland and Credit Suisse thought… rubbing their hands in glee. I suppose our London financial centre is a competitor…

Also, who are the bulk of the depositors in Credit Suisse? Is it mainly simple Swiss people or the super rich from the Middle East? I don’t know.

Stock market looks good though.

High net worths and businesses.

@Emotionalstorm - mainly Swiss ones or international ones? Because I don’t understand the concept of a country bailing out foreign rich people and foreign businesses? However, I don’t think they have a choice because Credit Suisse can’t fail.

I haven't read them, what did you think of it?

when I heard about SVB, I hope it was one with niche investments.

CS worries me

have we got another set of cases of massive overextension - and lots of other banks will have done the same? Will this affect consumer banks? I am worried so grateful for any info.

is a building society safer?

This is the trouble with woke ESG credit ratings.

www.google.com/amp/s/www.mirror.co.uk/news/uk-news/outrage-male-bank-director-who-13293001.amp

www.google.com/amp/s/www.dailymail.co.uk/news/article-11863441/amp/Silicon-Valley-Bank-donated-73-MILLION-Black-Lives-Matter.html

I recall Barclays being very woke. I understand from the Halifax pronouns badges fiasco that they are owned by Lloyd's and they inturn had their biggest share holder Blackrock.

If you bank with these companies in ISAs or savings I would go check them out, as the theme seems to be woke banks so far.

www.esg.org/what-is-esg

It definitely is worrying and CS has been struggling for a while now. i always expected the Swiss Regulators to step in because CS is so much bigger than SVB and the impact of CS failing will be similar to if not worse than Lehman Brothers.

SVB had a niche focus on VC and early stage investors and while it did have an impact eg companies those investors invested in used SVB etc, CS has bigger retail, investment banking and asset manager operations. Also the impact for the UK will be more severe than SVB because CS has a larger prescience in the city for its investment banking business.

Anyway as I said and expected the Swiss authorities have stepped in to provide support, they just cannot let it fail. I do hope they recover soon because it’s been one crisis after the other for CS over the last 3 years or so.

Super rich from the Middle East, Asia etc.

The former CEO focused on building the wealth manager business in Asia a few years ago.

www.google.com/amp/s/www.dailymail.co.uk/news/article-10971383/amp/Halifax-exodus-banks-woke-badges-amid-outcry-decision-urging-staff-share-pronouns.html

I understand that the more woke a company is the more it needs credit and will try to increase it's ESG credit score.

So logically without loking at the accounts, look around at all the companies, supermarkets, high Street shops, banks, building societies etc and see how woke they are and I would guess that's how much debt they have.

Blackrock own shares in Lloyd's, so also Halifax, this article has the their share price history, which should give you an idea, until you get to a personal financial adviser.

capital.com/blackrock-shareholder-who-owns-most-blk-stock