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There are a few other large banks that have also their lot of challenges. At this stage, as you say, it is an irrational panic. CS was well capitalised by any m
by cm2187 4y ago
There are a few other large banks that have also their lot of challenges. At this stage, as you say, it is an irrational panic. CS was well capitalised by any modern standard and it would have required massive losses before creditors and depositors were seriously exposed. But no bank can resist a large enough bank run.
- Arnt 4y agoFWIW almost none of the $100B that flowed out was insured.
- fsckboy 4y agothat's interesting, and exactly what regulators should expect. in a certain sense, the crisis starts when the bank starts taking in large uninsured deposits
- Arnt 4y agoTo be pedantic, this was managed money, not deposited. You can go to CS and say "Here, I have a million, please buy and sell some shares for me so my children will have two million each", or "here, we sell much in the runup to Christmas but our costs are evenly spread over the year, please manage our spare cash so we'll earn something when we can".
- mschuster91 4y agoCS was gobbled up in a truckload of scandals for years now; I'd guess only Deutsche Bank surpasses them. It is not surprising at all that all the mistrust finally caught up with CS.