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All very true, however, if they still had 14% CET1 capital ... they didnt need a bail out, or to be sold etc. If however, they required a bail out ... then the
by blitzar 4y ago
All very true, however, if they still had 14% CET1 capital ... they didnt need a bail out, or to be sold etc.
If however, they required a bail out ... then they cant have had that much capital left. It is not compatible to be bankrupt, but have 40bn of capital, while also only being worth 2bn - one of the statements has to be false.
- kgwgk 4y agohttps://www.ifre.com/story/3816115/should-have-known-better-the-write-down-of-credit-suisse-at1s-qx9xp6lznd https://www.ifre.com/story/3816115/should-have-known-better-... “There has also been some confusion about solvency being equal to viability. Viability is about the ability to operate viably and independently without any form of extraordinary state support, whereas solvency is merely the ability to pay debts as they fall due. So, one can be non-viable at one point, and still be solvent at that point, which may have been the case for Credit Suisse. Viability asks will the bank last on its own, and solvency asks can they pay their debts.”