3 ms·
But perhaps after some point, since UBS is too big to fail, the Swiss National Bank will again back UBS indefinitely. In other words: UBS 5 billion then Swiss
by _nalply 4y ago
But perhaps after some point, since UBS is too big to fail, the Swiss National Bank will again back UBS indefinitely.
In other words: UBS 5 billion then Swiss National Bank 9 billion then UBS as long as they can and finally Swiss National Bank the rest.
- pg_1234 4y agoNo ... in the worst case scenario the Swiss protect deposits, possibly nationalize the infrastructure needed to service those deposits, then let the rest of the structure collapse into bankruptcy. You don't bankrupt your national economy to protect foreign speculators. You salvage the part that your citizens depend on (and were meant to be able to trust). Once you're talking 100 billion plus, global investor confidence will recover over time long before you recover from a financial hit like that. Basically the approach that Sweden took in 2008.