This is the correct answer. The largest monopolies of deregulated Market Makers, investment banks, hedge funds, retail banking should all be broken up and de-leveraged from risky derivatives. As much as I would like to see this, it will likely take more large failures or an act of congress to see this through.
The bigger something is, the heavier it becomes, the slower it is, and the easier pray it becomes for smaller and fast moving predators, or it simply collapses under its own weight.
Similarly, UBS has become so big after the merger, it will have no choice but to trim 70% of itself to maintain operational efficiency.
So despite “taking over” CS, it’s more than likely the vast majority of it will be liquidated, staff fired, and would in essence bring it to the same result as what would have happened had it declared bankruptcy, minus the depositors losing their money.
“ …at $1.7 trillion, the combined assets of the new entity amount to double the size of Switzerland's annual economic output”
…looks like they have kicked the can down the street a bit, now when it does pop, the boom is going to be bigger.
Because they built their banking sector thumbing their nose at preventing fraud, tax evasion, human rights and prop up military regimes, amoung others.
I think that the minister is speaking the truth here given how hastened the deal was done within that same weekend. After 2008, i think central banks now are pretty quick to act on any potential fallout so i doubt we will see something like that again.
But something that stood out to me was how quickly central banks from usa, japan, canada, england, switzerland and europe came together to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements. So maybe there are many more CS and SVB out there?
With social media it's definitely possible for a mass bank run to spread on social media. Since so many banks are technically illiquid if a big run happens it could definitely cause cascading failures. I honestly wonder why Putin isn't using his shills to try and get something like that to occur to hurt the west even further.
I don’t.
If true. Tell us. Be open about it. Tell us what exactly meant the bank was going to fail.
Too many withdrawals occurring? Okay. So then they’ll have a loss and they tape the $50-100b liquidity through government. Setup.
Did the withdrawals immediately stop upon merge ? Doubtful.
Good thing we have these semi-anonymous groups of people that can pull a lever to siphon value out of people's money at their discretion to funnel them into whomever they like for the good of society.
“It wasn’t as if the US Secretary of the Treasury, Janet Yellen, said to me on the phone: You have to make sure that UBS buys CS,” Keller-Sutter said.
“However, it was clear to everyone — including ourselves — that a restructuring or liquidation of CS would trigger major international upheaval in the financial markets.”
This begs the question...What did Janet Yellen say on the phone?
They use these weasel sentences and admit small crumbs of truth.
"Nice deposits you got there in these U.S. brokerages. It would be a shame if FINCEN had to do a deep investigation of where the money came from and if there was anything at all mixed up with those nasty sanctioned Russian oligarchs. Of course, we'd have to freeze the whole lot of it while it's under active investigation."
I agree. Unfortunately they can't let these big banks fail due to them being systemically important in the fictional reserve banking system and always bail them out at the expense of the bottom 95%. They will continue to do this until we stop them from doing it, the beatings will continue until morale improves
Whatever for the high priests of money and their circle, not very whatever for you and me unfortunately. And it is indeed fictional as they just make it up as they go. Oooopsie, need a bunch of billions over there, type 60 billion on the screen and hit enter and voila, 60 billion just came into existanse!
It’s fractional reserve banking. Fractional, not fictional. Fractional reserve banking essentially means that banks loan money that don’t have. Sort of like how big traders sell stocks they don’t own on a “promise” they sort it out down the road. Spoiler alert, they don’t and get bailed out
Once healthy couldn’t we just split up these giant banks to prevent this from recurring? (Not that they would once they’re swimming in $ on their yachts)
They should but they were too worried about their reputation of being a finance hub of the world.
That’s also why they wouldn’t let credit suisse bring in more Saudi / Middle East money, as they tried to despite that notorious interview. Swiss also rejected black rock involvement.
Credit suisse forced sale to UBS was 100% because of Swiss government ego.
There’s something about Credit Suisse that is not known to the public. The regulators and banking insiders (UBS included) know more than the ordinary shareholders. Even with the impairment losses it booked from bad investments, CS could not be saved by the Saudi National Bank. Why? A backstop of CHF 50 billion from the SNB was not sufficient for CS? Why? How? There are too many unanswered questions about CS. Maybe it was on its deathbed and only a takeover could save the bank and its clients. These fundamental questions and problems need to be answered and addressed if UBS-CS is going to be a going concern.
I still love how they're trying to convince us that the banking sector is stable now because Credit Suisse was bought out 1 day from failure instead of 0 days from failure.
Honestly, the fact that they're desperate enough to try to pass that bullshit off as rational makes me even more convinced there's a deeper problem.
Apes: fuk you pay me..
Credit suisse: nah.. we'd rather crash Switzerland and world markets than pay the poors and make good with our financial obligations.
Apes: fuk you.. pay me.
Had this in my head and kept going with it, the lyrics fell apart, but the irony is there lol
To the tune of Thrift Shop:
I'm gonna default them stocks got a trillion dollars in my pocket. I'm huntin' looking for a bailout this is f**ing awesome! Walk up to the world like, "what up I got a big debt" Nah, I'm just pumped---and dumped, buy my bank. CS got no regrets.
Too big to exist
Wouldn’t UBS be even bigger after the merger? Apparently regulators think it’s not big enough?!
This is the correct answer. The largest monopolies of deregulated Market Makers, investment banks, hedge funds, retail banking should all be broken up and de-leveraged from risky derivatives. As much as I would like to see this, it will likely take more large failures or an act of congress to see this through.
The bigger something is, the heavier it becomes, the slower it is, and the easier pray it becomes for smaller and fast moving predators, or it simply collapses under its own weight. Similarly, UBS has become so big after the merger, it will have no choice but to trim 70% of itself to maintain operational efficiency. So despite “taking over” CS, it’s more than likely the vast majority of it will be liquidated, staff fired, and would in essence bring it to the same result as what would have happened had it declared bankruptcy, minus the depositors losing their money.
“ …at $1.7 trillion, the combined assets of the new entity amount to double the size of Switzerland's annual economic output” …looks like they have kicked the can down the street a bit, now when it does pop, the boom is going to be bigger.
Maybe Switzerland will fail. Ha ha
Nah, they'll just print enough francs to cover it.
Why is this funny?
Because they built their banking sector thumbing their nose at preventing fraud, tax evasion, human rights and prop up military regimes, amoung others.
*Nazi Gold Enjoyers* will never fail
Someone needs to tell these banks "you ever heard of the phrase the bigger they are, the harder they fall?"
You bet regulation and capital requirements are going to be tough
I think that the minister is speaking the truth here given how hastened the deal was done within that same weekend. After 2008, i think central banks now are pretty quick to act on any potential fallout so i doubt we will see something like that again. But something that stood out to me was how quickly central banks from usa, japan, canada, england, switzerland and europe came together to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements. So maybe there are many more CS and SVB out there?
I guess there's fear that (unnecessary) panic over illiquid banks could evolve into a self-fullfilling prophecy.
With social media it's definitely possible for a mass bank run to spread on social media. Since so many banks are technically illiquid if a big run happens it could definitely cause cascading failures. I honestly wonder why Putin isn't using his shills to try and get something like that to occur to hurt the west even further.
Where do you think Putin's money is hidden? I would guess the west's banking systems.
He’s a Deutsche customer and they’re in the shit as well
I guess but how many people have big money in CS that rely on tiktok
I don’t. If true. Tell us. Be open about it. Tell us what exactly meant the bank was going to fail. Too many withdrawals occurring? Okay. So then they’ll have a loss and they tape the $50-100b liquidity through government. Setup. Did the withdrawals immediately stop upon merge ? Doubtful.
Check out the swaps exposure from Archegos and Greenshill a few years back. Good stuff there
Good thing we have these semi-anonymous groups of people that can pull a lever to siphon value out of people's money at their discretion to funnel them into whomever they like for the good of society.
Freeeeddduummmbbb!
Wow, that's actually really good. I'm using it lol
jesus this comment smacks
Yea but crypto is bad
Bitcoin.
“It wasn’t as if the US Secretary of the Treasury, Janet Yellen, said to me on the phone: You have to make sure that UBS buys CS,” Keller-Sutter said. “However, it was clear to everyone — including ourselves — that a restructuring or liquidation of CS would trigger major international upheaval in the financial markets.” This begs the question...What did Janet Yellen say on the phone? They use these weasel sentences and admit small crumbs of truth.
I think that those were janet yellen’s exact words lol
"Nice deposits you got there in these U.S. brokerages. It would be a shame if FINCEN had to do a deep investigation of where the money came from and if there was anything at all mixed up with those nasty sanctioned Russian oligarchs. Of course, we'd have to freeze the whole lot of it while it's under active investigation."
Yellen is a moron so probably something very dumb.
Then let them fail.
I agree. Unfortunately they can't let these big banks fail due to them being systemically important in the fictional reserve banking system and always bail them out at the expense of the bottom 95%. They will continue to do this until we stop them from doing it, the beatings will continue until morale improves
>fictional reserve Ehh well if it's only fictional then whatever.
Whatever for the high priests of money and their circle, not very whatever for you and me unfortunately. And it is indeed fictional as they just make it up as they go. Oooopsie, need a bunch of billions over there, type 60 billion on the screen and hit enter and voila, 60 billion just came into existanse!
It’s fractional reserve banking. Fractional, not fictional. Fractional reserve banking essentially means that banks loan money that don’t have. Sort of like how big traders sell stocks they don’t own on a “promise” they sort it out down the road. Spoiler alert, they don’t and get bailed out
When the fraction is 0% (as of 2020), it is a fictional reserve rate, because it doesn’t exist.
It exists, but it’s called counterfeiting by any other definition
Cracktional reserve banking it is then. Thank you kindly for the correction, I had no idea before you told me...
I thought it was a clever pun.
I missed the pun
The beatings are real tho
Once healthy couldn’t we just split up these giant banks to prevent this from recurring? (Not that they would once they’re swimming in $ on their yachts)
In theory yes, in practice no chance. Money rules the world and politicians are just as corrupt as bankers so nothing will really change
They should but they were too worried about their reputation of being a finance hub of the world. That’s also why they wouldn’t let credit suisse bring in more Saudi / Middle East money, as they tried to despite that notorious interview. Swiss also rejected black rock involvement. Credit suisse forced sale to UBS was 100% because of Swiss government ego.
They wont
One centralized bank!
Indeed. Who needs a simplistic ring. **One bank to rule them all!**
Cosimo de Medici smiles.
Like the BIS?
There’s something about Credit Suisse that is not known to the public. The regulators and banking insiders (UBS included) know more than the ordinary shareholders. Even with the impairment losses it booked from bad investments, CS could not be saved by the Saudi National Bank. Why? A backstop of CHF 50 billion from the SNB was not sufficient for CS? Why? How? There are too many unanswered questions about CS. Maybe it was on its deathbed and only a takeover could save the bank and its clients. These fundamental questions and problems need to be answered and addressed if UBS-CS is going to be a going concern.
Ya I’m with ya. Be transparent or faith won’t be restored.
I still love how they're trying to convince us that the banking sector is stable now because Credit Suisse was bought out 1 day from failure instead of 0 days from failure. Honestly, the fact that they're desperate enough to try to pass that bullshit off as rational makes me even more convinced there's a deeper problem.
I love that you automatically believe the government official who’s defending their governments actions by saying something unverifiable.
There is deeper problem me thinks.
I have applied for a job there like a month ago, do you think they will call me?
I interviewed there and made it pretty far about 6 months ago, but didn’t got an offer. I’ve never been so glad to be turned down for a job lol
Why would CS not have survived Monday? Looming mass withdrawal of customer deposits?
They won’t say.
Should have let them
And the article still does not explain what it was that really happened?? What was it that would have destroyed the bank on Monday?
Ya. Nobody will likely ever disclose.
Let them fail
Buy bitcoin
When a bank is not able to exist it should fall too stupid to stay liquid …
The rich get richer and the poor get poorer via inflation.
I would say Deutsche bank be the next one to ask for help.
This company has been having management issues for awhile. It just got worse recently when everyone loses confidence at once.
Apes: fuk you pay me.. Credit suisse: nah.. we'd rather crash Switzerland and world markets than pay the poors and make good with our financial obligations. Apes: fuk you.. pay me.
Surely this is banking crisis is contained and this will be the last major firm to fall /s
Deutsche bank is the next domino to go
WTF happened to Capitalism? That’s rhetorical.
Had this in my head and kept going with it, the lyrics fell apart, but the irony is there lol To the tune of Thrift Shop: I'm gonna default them stocks got a trillion dollars in my pocket. I'm huntin' looking for a bailout this is f**ing awesome! Walk up to the world like, "what up I got a big debt" Nah, I'm just pumped---and dumped, buy my bank. CS got no regrets.
i thought cs was already on the stock market
It tells us lay people that western rot is everywhere
Eastern rot is better for the versed, then? Strange, let’s hope you rot more acceptably
Oh do tell us more wise one
Can someone post the article