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I think a relevant question is who is "they" in this case. We've talked endlessly about the US Treasury and the Fed, but CS is based in Switzerland. A country w
by tootie 4y ago
I think a relevant question is who is "they" in this case. We've talked endlessly about the US Treasury and the Fed, but CS is based in Switzerland. A country with a long and storied history of banking independence. The US and EU aren't going to stand by and do nothing since our businesses likely have major exposure but one would hope the Swiss would deal with this appropriately.
- esja 4y agoCS operates in 50+ countries. All the largest entities have resolution/winddown plans agreed with their regulators. In reality they probably won’t be used because the SNB and Fed will fear contagion.
- config_yml 4y agoThe resolution process is outlined by FINMA, this was all defined after 2008 and the bailout of UBS: https://www.finma.ch/en/enforcement/recovery-and-resolution/too-big-to-fail-and-financial-stability/banks’-recovery-and-resolution-planning/ https://www.finma.ch/en/enforcement/recovery-and-resolution/...
- esja 4y agoYes, but the SNB and FINMA (and the Federal government) will try many other things before it comes to that.
- BeFlatXIII 4y agoI hope the Swiss will let it fail. That's appropriate.