The bankruptcy of the oldest bank in Switzerland may result in the collapse of the US and EU banking system

March 20 2023 13

Switzerland's largest and oldest bank, Credit Suisse, is following the collapse of four major US banks. The Swiss authorities are thinking about how to save it, offering various options - from providing liquidity to nationalization.

Since the morning of March 20, the bank's shares have fallen in price by about 60%. At the same time, it was reported the day before that it would be bought out by another largest bank in the country - UBS. Today, Credit Suisse, which has been operating since 1856, is close to being taken over by competitors, the price of the issue and specific assets are being discussed.

The bankruptcy of the oldest Swiss bank, which has the AAA category - "unsinkable" - experts compare with a worldwide flood in the Western European banking system. This is the strongest signal for financiers and bankers that the most serious problems are being realized in the banking sector of Europe and the USA.

The talk that Credit Suisse is on the verge of collapse has been going on for a long time. The reason is billions of losses in advance loans, $4,7 billion in losses due to the collapse of Archegos and a monstrous (under 30%) drop in revenue. The hope of being saved by attracting financing from a Saudi Arabian credit institution evaporated immediately after the statements on this subject by the Arabs themselves.

A few days ago, the bank's quotes fell 30,8% to 1,55 Swiss francs, the biggest drop in just one day. The market capitalization of the bank decreased by 15%, or $1,5 billion.

Following the depreciation of Credit Suisse shares, UBS, which was about to buy its shares at a price of half a franc apiece, also sank. They fell over 8%. Other Swiss banks also fell, and this caused a chain reaction in other large banks in Western Europe. Thus, Deutsche Bank lost 6,7%, Allianz -2%. Raiffeisen -5,55%.

All this will eventually result in the collapse of the US and EU banking system, which is interconnected, banking experts say. This threatens the bankruptcy of the largest Western banks, insurance, investment and pension funds, followed by the bankruptcy of private companies and enterprises, and then the bankruptcy of individuals.

Formerly US Regulator объявил on expanding the program to support the central banks of the allied countries with the help of mutual transactions with government bonds. The central banks of Great Britain, Switzerland, Japan and Canada will participate in the mutual assistance program.

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Avarron

+6

20 March 2023 20: 10

Well, it remains to be hoped that anti-Russian sanctions will play the role of isolating the Russian banking system from the Western one, which will prevent the crisis from spilling over from the West to Russia.
And so I can say - health to the dead.
1. Dingo
  
  +3
  
  20 March 2023 23: 57
  
  And so I can say - health to the dead.
  
  And so that we ourselves do not wish such "health" - we need to keep an eye on our money ... And especially Nabiullina's "playful" little hands.
Sergey Latyshev

-3

20 March 2023 23: 23

Another "bucks is about to collapse" ...
one bank went bankrupt .... But right in the article it was reluctantly mentioned that it was connected with 104 other banks / societies .... so a trifle. Despite all...
Like us, they throw money at us ...
trampoline instructor

+1

20 March 2023 23: 27

The oldest bank in Switzerland has already been bought by another bank, so I will sleep perfectly well.
1. boriz
  
  +3
  
  21 March 2023 01: 11
  
  And you ask what is happening with the shares of this buyer's bank right now ...
  And "sleep well, dear comrade" (C) ...
  1. trampoline instructor
    
    +2
    
    21 March 2023 09: 01
    
    Do I need to inquire about the catch of fish from the wild tribes of the Amazon?
    Look better under your nose, where millions of people have been pushed back from retirement for 5 years.
    However, I survived this situation, sleep perfectly and do not tap out here at 01.11.
    1. Dingo
      
      +1
      
      21 March 2023 13: 04
      
      where millions of people have been pushed back from retirement for 5 years.
      
      Well, these questions are not for him. And to the one who "...as long as I am president, there will be no pension reform" (c). But not even the Pension reform is terrible, although there is nothing good in it, but the "optimization" of medicine, carried out by two accomplices - Tanya Golikova and Verka Skvortsova (she calls herself "Veronica"). These two (mat) turned health care into a health facility ... And what they could not ruin was transferred to a paid basis. With the lack of doctors, which they "optimized" - that's cool! Leaves no choice. From the word COMPLETELY! Who allowed and rewarded? Rhetoric ... With a beggarly pension - this is doubly cool!
      Art. The Criminal Code and the camp barracks - that's a "worthy" reward !!!
      I tell you this. like a pensioner. When I worked in 3 shifts for almost 40 years, I also paid little attention to this - the salary was not so beggarly, and my health was not that ... Only for some reason the departmental polyclinic became a general one - and there were no doctors left ... And those that remained - nothing at all until retirement, it makes no sense to go to paid offices ... I rummaged through the internet - but what is happening then? Admire .... Pictures from free, public access, if anything ...
      
      And further...
      
      Today, 21.03.23/09.02/24, my wife and I arrived from the clinic - we got in line in the direction of the ophthalmologist ... An ophthalmologist's consultation was scheduled a year later, XNUMX. XNUMX years old ... The decision is what they say ... Paid clinic ... Here you can laugh ...
      No, I'm not sorry - it's too late, and there is no one. Just think - academician Fedorov died for a reason ...
      And I'm not interested in the "catch of fish in the Amazon" either, as well as their banking system. Graf is enough...
      1. trampoline instructor
        
        0
        
        21 March 2023 22: 10
        
        And to the one who "...as long as I am president, there will be no pension reform" (c).
        
        You violated the citation rules - it was not about pension reform, but about raising the retirement age.
Cetron

+4

20 March 2023 23: 53

The bank collapsed, Swiss! What about the causes of the problem? Switzerland joined the anti-Russian sanctions and, at the insistence of the United States, froze the deposits of Russians, and considered the possibility of their confiscation. True, they have recently backed down, saying that for this it is necessary to hold a referendum. Wealthy savers in the east realized that the Swiss banks were no longer as reliable as they used to be, and began to withdraw assets. (Hundreds of billions at a time. Bank shares collapsed) Middle East, China, SE Asia, South America: against whom will the US impose next sanctions, who will not like the "hechemon" next time?
atmospheric internet

+2

21 March 2023 04: 00

The fox crept up unnoticed ....
..... or not
1. bda lng
  
  0
  
  21 March 2023 06: 22
  
  On the program of the Kremlin "propagandist" Solovyov, this was discussed last year)) And who listened, well done!
Irek

0

21 March 2023 07: 04
Of course, there will be no collapse, but the dollar is already in ...
1. boriz
  
  0
  
  21 March 2023 13: 12
  
  Against the backdrop of the collapse of banks, the dollar may also rise. It's just that depositors will rush about where they can put their money, since such an ambush with banks.