The frightening news about Credit Suisse is that it is quite obviously too big to be allowed to fail
It is so large and so interconnected with the global financial system that a collapse would surely create an all-out systemic crisis.
The good news about Credit Suisse is also that it so clearly too big to be allowed to fail. Somehow or other, its clients and counterparties will be tided through whatever is to come because the alternative is unthinkable.
To the extent that the problem is liquidity, then the $54 billion rescue package from the Swiss National Bank should see it through until regulators can thrash out a viable longer-term resolution.
Once worth more than $100 billion, it is now worth less than $10 billion. Even in the depths of the GFC, it was worth twice as much as it is now.
John Authers Bloomberg 16 mars 2023
Is Credit Suisse, the bad apple of European banking, really 'too big to fail, too big to be saved'?
“The SNB and the Swiss government are fully aware that the failure of Credit Suisse or even any losses by deposit holders would destroy Switzerland’s reputation as a financial centre.”
Simon Foy Telegraph 16 March 2023
Is Credit Suisse really 'too big to fail, too big to be saved'? (telegraph.co.uk)
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