Swiss central bank says it is ready to provide support to Credit Suisse

[Scott]

 

Switzerland’s central bank said Wednesday it was ready to provide financial support to Credit Suisse after shares in the country’s second biggest lender crashed as much as 30%.

In a joint statement with the Swiss financial market regulator FINMA, the Swiss National Bank (SNB) said Credit Suisse (CS) met the “strict capital and liquidity requirements” imposed on banks of importance to the wider financial system.

“If necessary, the SNB will provide CS with liquidity,” they said.

https://edition.cnn.com/2023/03/15/investing/credit-suisse-shares-saudi-national-bank/index.html

 

[candide]

 

Unlike the US, Europe kept its banks on a tight rein post-2008. That was smart

http://edition.cnn.com/2023/03/15/economy/european-bank-rules-svb/index.html

[OneMoreFarang]

3 hours ago, Scott said:

after shares in the country’s second biggest lender crashed as much as 30%.

I have little knowledge about banks. But that something like that can happen at all to such a big bank is scary. 

[nigelforbes]

Just now, OneMoreFarang said:

I have little knowledge about banks. But that something like that can happen at all to such a big bank is scary. 

As I wrote in a separate thread, this appears to be a combination of historic issues that were already being addressed, along with the momentum of herd mentality.....as ever, short sellers were in on the act also.

 

CS's liquidity levels are just fine and more than adequate, they also now have the backing of the Swiss Central Bank. All banks are now becoming targets, even robust ones such as JP Morgan which has seen it stock fall by over 5%. At some point, actions and soothing words from Central Banks will make all of this settle down then things can return to normal.

 

[Skeptic7]

CS has had problems and scandals for years. Been fined billions of dollars over the past decade. Stock is????88% over the past 5 years. 

 

[Tug]

Scary stuff hope they get it sorted out!

[AndyFoxy]

Cash out of the bank. Invest in tangible assets.

[nglodnig]

Credit Suisse is a basket case anyway. Totally inept management ( I know several people who work/have worked there).  Had an interview with them where I expressed my doubts on their methodology - guess what I didn't get the job. Their loss.

[nigelforbes]

On 3/16/2023 at 6:55 PM, Skeptic7 said:

CS has had problems and scandals for years. Been fined billions of dollars over the past decade. Stock is????88% over the past 5 years. 

 

Indeed there have been problems at CS although not many of them have been traditional banking type problems, the client confidentiality issue was a biggee which was more cultural than banking. And whilst the graph above does look thought provoking, it also is a good example of the impacts that covid had on the banking industry! If you go a bit further back in time you can get a better perspective and see the various impacts of other US banking related events, on the CS share price.

https://www.macrotrends.net/stocks/charts/CS/credit-suisse-group/stock-price-history