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 just pissed off that, as with the Trussonomics damage to pensions, no-one in finance wants to learn anything from history and it is always ordinary punters who end up paying for their games.

Yes, one way or another we will pay for this.

This worries me
I never thought this stuff would influence their investments, I thought it was performative

I am moving home and was going to take most of the deposit from my building society account, but maybe I should try to preserve more of that and take more from bank savings. Or Do building societies do this crazy stuff too?

Put them into a search engine with words like woke and pronouns see if something comes up.

I think you are OK for £85,000.

No it's for the ESG, I came across this when people were outraged about Halifax, I followed some tweets trailing that Halifax was owned by Lloyd's, then went down a rabbit hole to ESG credit scores and Blackrock owning 9% of Lloyd's shares.

It's then been interesting to see the woke institutions fail, as they aren't focused on banking and are dreadful with finances hence they were chasing good ESG scores because they were more despirate for credit they had to do more to gain the loans.

The FDIC (Federal Deposit Insurance Company) insures bank deposits (cash only, not CDs or any investment products) up to $250K.

They're now breaking their own rules and ripping off the tax payers by guaranteeing ALL this garbage bank's deposits. Another US taxpayer funded bailout of rich, corrupt, criminals

Anyone who thinks SVB failure has anything to do with "woke" or ESG is woefully misinformed.

The bank failure was due to basic and predictably stupid money mismanagement. You can't offer depositors 1.8% interest rates on deposits when every other bank offers 0% and do it by having a long duration bond portfolio. Everyone knew sooner or later the Fed was going to raise rates. Keeping them at 0 since 2009 can't happen forever especially with double digit inflations. It's econ 101. When rates rose, the long duration bond portfolio lost a ton of value. Bond prices are inversely related to interest rates. This is what happened. Period. Full stop. SVC should have barbelled that bond portfolio.

Injecting "woke" or ESG into this is absolutely idiotic far right Ben Shapiro-esque idiocy. Long term treasuries are not "woke" or "ESG". Like at all.

ESG is all fake too btw.

A company my firm passed on investing in made single use plastics. They had a high ESG score because they have a "diverse board". There's nothing "ESG" about a company that makes single use plastics. It's all BS.

www.mumsnet.com/talk/womens_rights/4765928-credit-suisse-and-pip-bunce

www.bloomberg.com/news/articles/2023-03-13/sweden-bans-non-esg-funds-from-touching-90-billion-pension-pot?sref=6uww027M&leadSource=uverify%20wall

This should be interesting, as the United Nations thinks the UK isn't up to date with human rights when it comes to trans.

If an international investment firm is interested in applying for the pool of pension savings - which represents around 10% of Sweden's overall public retirement funds - they need to be able to document their fealty to the ESG movement, including proving they have processes in place to prevent funds from being linked to various international agreements such as the OECD's guidelines for multinational corporations, the UN Global Compact, and the UN's guiding principles for human rights.

Interesting update, Swiss regulators are trying to broker a deal for UBS to buy Credit Susie. Suggested Credit Suisse’s problems are a lot worse.

www.wsj.com/articles/ubs-in-talks-to-take-over-credit-suisse-ed932b01

Credit Suisse is a bit of an outlier as it’s been poorly run for a good couple of years now. It was a weak link. Hopefully the damage can be contained. I don’t think we’re in a similar situation to 2008 as the stress tests are pretty strong. That said I’ve not heard good things about Deutsche Bank who’ve had issues for a long time.

Thank you, this is interesting

So other banks have less risk exposure?

Today feels like a dark day in banking. Is this the start of another huge recession?

Is this about UBS buying CS?

The ftse looks ok though.

The regulators don’t want anyone to panic… Hopefully BOE will keep interest rates as is on Thursday…

The press is whipping people up in a frenzy as usual.

Do you think a further increase will spook the markets?

Yes. The BOE has already said this is the maximum they can raise interest rates without having the housing market collapse. They also said a couple of weeks ago they won't raise it anymore.

BBC are reporting that the Germans are saying their banks aren't in the same situation as 2008.

Yet we read here that Deutsche Bank may be an issue.

How did the press fuck up Credit Suisse?

Well I don't think the BOE predictions on inflation are going to be correct

Chat I'm seeing on twitter seems to think they won't increase, for all that's worth.

Let’s see what the Fed does regarding interest rate pause in the next couple of days…

All along some economists have predicted that raising the interest rates so quickly was mistaken in the first place because inflation was primarily driven by energy costs and not full basket of goods. In very simplistic terms energy traded in dollars so dollar going up means ECB and BOE no choice but to raise rates (especially given weakness of pound post Brexit etc). ECB was criticised in early days for not raising rates quickly enough. Frankly, I think the Fed -overegged all along and should have foreseen consequences.

Added to that UBS/CS merger is now a whopping systemic too huge to fail bank problem really for Switzerland so not sure how that is going to work long term.

I feel dim.

Why is it so dark and a bad sign that UBS have bought Credit Suisse? Hasn't that saved the bacon of the wider economy?

So frustrated I just don't get the nuance of all these decisions!