Too big to fail: 167 year old Credit Suisse Bank goes belly up due to internal corruption.

[MarathonMike]

How do you screw up a 167 year old global bank so badly, you have to sell it for pennies on the dollar? This is a good read that gives a different perspective in this massive failure. The Bottom line is when you get away from your fundamental principles, bad things happen. Kind of like what's happening with our government and media.

Revealed: Credit Suisse leak unmasks criminals, fraudsters and corrupt politicians

Massive leak reveals Swiss bank’s accounts have been used by an array of high-risk clients over several decades

www.theguardian.com

 

[pknopp]

Simple. Greed.

 

[multivita-man]

How do you screw up a 167 year old global bank so badly, you have to sell it for pennies on the dollar? This is a good read that gives a different perspective in this massive failure. The Bottom line is when you get away from your fundamental principles, bad things happen. Kind of like what's happening with our government and media.

Revealed: Credit Suisse leak unmasks criminals, fraudsters and corrupt politicians

Massive leak reveals Swiss bank’s accounts have been used by an array of high-risk clients over several decades

www.theguardian.com

And this is why UBS was super hesitant to buy CS. They had a pretty good hunch that something like this would come out of the woodwork - or maybe they already knew - and wanted assurances from the Swiss government that they would be indemnified against investor lawsuits.

OTOH, if you're one of their AT-1 bondholders, you just have to accept the fact that you got played and that your bonds are completely worthless now.

Don't think other bondholders at other major systemically important banks around the world aren't thinking about this.

 

[Magnus]

And this is why UBS was super hesitant to buy CS. They had a pretty good hunch that something like this would come out of the woodwork - or maybe they already knew - and wanted assurances from the Swiss government that they would be indemnified against investor lawsuits.

OTOH, if you're one of their AT-1 bondholders, you just have to accept the fact that you got played and that your bonds are completely worthless now.

Don't think other bondholders at other major systemically important banks around the world aren't thinking about this.

UBS only took over CS after they pretty much-declared bankruptcy. Swiss govt and the global community wanted it to happen.

The 9b provided by the Swiss govt sure made the medicine go down easy.

 

[multivita-man]

UBS only took over CS after they pretty much-declared bankruptcy. Swiss govt and the global community wanted it to happen.

The 9b provided by the Swiss govt sure made the medicine go down easy.

The medicine went down easier for CS' shareholders. Not so much for their bondholders, though.

 

[ChemEngineer]

I challenged the Chief Investment Strategist of Credit Suisse Bank long ago as published in the Wall Street Journal.
Obviously these guys aren't very bright.

"It ain't braggin' if you really done it." - Hall of Fame Pitcher Dizzy Dean

 

[merrill]

well well well,

PBS
https://www.pbs.org › newshour › world › credit-suiss...

4 days ago — GENEVA (AP) — Credit Suisse shares surged Thursday after the Swiss central bank agreed to loan the bank up to 50 billion francs ($54 ...

Swiss regulator offers lifeline to Credit Suisse after its ...​

NBC News
https://www.nbcnews.com › business › business-news
5 days ago — Swiss regulators stepped in to reassure global financial markets after fresh fears about the viability of Credit Suisse threatened wider fallout ...

 

[multivita-man]

well well well,

PBS
https://www.pbs.org › newshour › world › credit-suiss...

4 days ago — GENEVA (AP) — Credit Suisse shares surged Thursday after the Swiss central bank agreed to loan the bank up to 50 billion francs ($54 ...

Swiss regulator offers lifeline to Credit Suisse after its ...​

NBC News
https://www.nbcnews.com › business › business-news
5 days ago — Swiss regulators stepped in to reassure global financial markets after fresh fears about the viability of Credit Suisse threatened wider fallout ...

A little late to the end-of-the-world party, dude.

 

[Tom Paine 1949]

“The Bottom line is when you get away from your fundamental principles, bad things happen. Kind of like what's happening with our government and media”. — from the OP

The simple truth is that — historically speaking — Credit Suisse’s “fundamental banking principle” has been to protect the absolute “privacy” of its richest depositors.

It never mattered if it was Nazi gold, or Saudi royalty “petrodollars,” the stolen gains of the Marcos clan in the Philippines or that of corrupt African dictators, or whether it was simply a matter of quietly facilitating transactions of drug cartels & arms dealers. In the “good old days” every very rich capitalist or crook seeking untraceable tax harbors was also welcome.

This history is shared by many bank centers, from “independent” British Commonwealth islands to the “City of London.” Indeed, today Swiss banks are not in any sense worse than British banking. Russian oligarchs until very recently preferred the genteel “City of London” banks to those in Switzerland. Of course now much of that wealth is being confiscated by the British bank giants under U.S. pressure … due to Putin’s invasion of Ukraine.

What are “fundamental banking principles” anyway? Much of the great fortunes of European and American banks originally arose from the slave trade, from colonial resource extraction, from the forced opium trade between India & China, etc.

The popular rightwing idea that it is the “political correctness” of “Liberal” bankers & politicians that has caused world financial instability is … preposterous.

Hypocrisy may indeed be the guilty compliment that vice pays to virtue, but it is not the root cause of vice, or of corruption and greed. It is also not now (nor has it ever been) at the root of fear, panic and … runs on banks.

 

[ChemEngineer]

Reminiscent of Christoph Melli, an absolute hero for exposing theft by Swiss bank.

Christoph Meili - Wikipedia

en.wikipedia.org