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Could they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.
by uejfiweun 4y ago
Could they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.
- toomuchtodo 4y agoToo Big To Fail. Swiss government will prop them up. https://www.reuters.com/business/finance/swiss-govt-proposes-public-liquidity-backstop-big-banks-2022-03-11/ https://www.reuters.com/business/finance/swiss-govt-proposes...
- JumpCrisscross 4y ago> Swiss government will prop them up Unlikely. The article describes a lender-of-last-resort mechanism more than a bail-out [1]. It comports with the EU's ELA [2]. It's an exorbitant privilege, for sure, but not TBTF. [1] https://www.efd.admin.ch/efd/en/home/the-fdf/nsb-news_list.msg-id-87574.html https://www.efd.admin.ch/efd/en/home/the-fdf/nsb-news_list.m... [2] https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergencyliquidityassistance202012~ba7c45c170.en.pdf?dca797da3212289956ac24df607eb168 https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergen...
- toomuchtodo 4y agoI will bet you an adult beverage of your choice if push comes to shove, they will rescue CS.
- JumpCrisscross 4y ago> if push comes to shove, they will rescue CS Depends on the circumstances. If they manage to take someone else (read: UBS) down with them, probably. If they blow up on their lonesome, probably not.
- esotericimpl 4y ago[dead]
- nik736 4y agoThey will collapse sooner rather than later and the gov has to save them
- deleted 4y ago[deleted]
- dmurray 4y agoCollapse as a business, sure, but its portfolio probably won't go underwater. It's failing in a different way from a bank that takes on too many bad loans and can't fund its liabilities. A merger with UBS was mooted once. Now it looks more likely UBS is waiting for it to fall completely and pick up the good bits on the cheap.