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How was Credit Suisse bailed out? It seems like they were closed and sold, as happens with a bank that fails. Bailouts, by 2008 standards, would have been givi
by mrzimmerman 4y ago
How was Credit Suisse bailed out? It seems like they were closed and sold, as happens with a bank that fails.
Bailouts, by 2008 standards, would have been giving money to Credit Suisse so they could continue operating and avoid the fallout of their bad choices.
- TheAlchemist 4y agoNot the greatest term I agree. But how do we call what happened ? Shareholders still got some money (~3B$). If it wasn't for government intervention, the bank would be dead very soon. The thing with banking and finance is that incentives are very bad - you play with other's people money, on thin margins - you're de facto encouraged to take risks. If they pay off, you get big bonuses, if they don't - you just change the bank you work for.
- neural_thing 4y agoThe SNB provided government guarantees to the tune of 260B Swiss francs. That's a bailout.