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Will taxpayers save CS?  Inside the parade ground

Will taxpayers save CS? Inside the parade ground

US banks are proving once again that they are too big to fail 15 years after the collapse of Lehman. The taxpayer should bail them out.

The same thing threatens in Switzerland. CS stock went into a free fall this morning. Sometimes the title lost about 15 percent.

Investors suspect much higher risk in the Number 2 books than before. According to insiders, the field of leveraged acquisition is critical.

CS took loans for privatization on its balance sheet. Due to the rapid increase in interest rates, you can only put it with customers at terrible costs.

It is clear that investors no longer trust the CS leadership with leaders Axel Lehmann and Ulrich Korner on the bridge.

I have lost faith in their October plan.

It begs the question of who will save the CS if all else fails. Will there be an event like 15 years ago?

At the time, Bern and the Swiss National Bank helped the reeling UBS with a total of CHF70 billion.

Taxpayers became major shareholders in UBS, while the Swiss National Bank took over illiquid mortgages.

In the end, the taxpayer is also behind the Swiss National Bank. Without it, the central bank has no power.

“There is nothing to comment on,” said a spokeswoman for the SNB this morning when asked if the SNB would help CS.

In the AFF on previous statements, according to which Bern is based on the CS plan. In addition, Venma accompanies the bank “closely.”

The bailout of Bern and the Swiss National Bank for CS would be a GAU for politicians. After Operation UBS in 2008, they swore never to help banks again.

Long Pride Zurich (IP)

To do this, systemically important financial institutions, above all UBS and CS, had to accumulate the so-called guarantee capital, which becomes shares in emergency situations.

The Silicon Valley bankruptcy in the US is now showing that banks should not continue to go bankrupt.

The US Treasury now guarantees all banks their bonds on the asset side of their balance sheets. Otherwise, they will have to sell their treasury investments and other assets.

A Silicon Valley bank became illiquid in a very short period of time due to a bond crash. She suffered from running down the bank.

US Treasury support aims to avert the imminent collapse of the offshore banking and financial system.

Backstop means tax money, even if the US government talks about it. The Treasury guarantee is based on the financial strength of the US taxpayer.

Switzerland is at the same point. Your system is too big to fail not ready for emergencies.

This has been officially confirmed by Finma in its latest reports. More stress tests are needed, according to the banking supervision authority.

This means that the CS could potentially be bailed out by the state if everyone else fails.

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