4 ms·
Would pre-2018 regulations (when they were eased for banks with deposits less than $250B) have prevented this?
by sanp 4y ago
Would pre-2018 regulations (when they were eased for banks with deposits less than $250B) have prevented this?
- disgruntledphd2 4y agoI think so. I believe that this is the reason EU banks have been ok so far, as they do need to hedge interest rate risk.
- brabel 4y agoEU banks are ok? Didn't Credite Suisse just go under and had to be forcedly saved by its main competitor?
- disgruntledphd2 4y agoYeah, I almost added CS to the original post, but their problems were relatively unique to them, rather than being an extreme case of a common problem, like regional banks in the US (who didn't need to hedge interest rate risk).
- the_mitsuhiko 4y agoCredite Suisse's problems predate the interest rate issues by years.
- School-Cotton 4y agoI have no idea about the substantive discussion, but just to point out: Switzerland is not in the EU.
- Maakuth 4y agoCredit Suisse is Swiss. Switzerland is not a member of EU and they don't use euro.
- brabel 4y agoI appreciate the correction but that probably doesn't change the point being made, as the economy of Switzerland is obviously closely tied to that of the EU (when I read EU I normally think Europe, not just European Union, which is my mistake, but in conversations like this I think "Europe" would be the better term after all).
- shagie 4y agoAside from where the bank is chartered... I would suggest a read of https://en.wikipedia.org/wiki/Credit_Suisse#Controversies https://en.wikipedia.org/wiki/Credit_Suisse#Controversies and consider that each time that happened they lost money and trust. At this point, they have neither.