Credit Suisse Is in Deep Trouble

[UpInArms]

Cutting to the chase …

The No. 2 Swiss bank and one of the largest banks in the world is in deep trouble and is currently fighting for its survival. A negative outcome is likely to cause a shock similar to that caused by the bankruptcy of the U.S. bank Lehman Brothers in September 2008. This event triggered one of the most serious financial and economic crises since the Great Depression.

… huge snip of tons of info …

"In the same business, it also found a failure to control limit excesses across both lines of defense as a result of an insufficient discharge of supervisory responsibilities in the Investment Bank and in Risk, as well as a lack of prioritization of risk mitigation and enhancement measures (such as dynamic margining)."

To avoid filing for bankruptcy, Credit Suisse has promised to present a strategic plan on Oct. 27. This should include the divestment of investment banking activities, the black sheep, speculate the markets.

More at …

https://www.thestreet.com/investing/credit-suisse-is-in-deep-trouble

[enid602]

1. Serious

This is very serious. Recession more likely.

[Farmer-Rick]

2. The first domino?

Got to love the wild speculative swings of free market capitalism.

[magicarpet]

5. The magic hands of the free market are the only regulatory,...

..... forces required for capitalism to endlessly prosper & flourish into eternity.

Ignore the ups and downs of recessions and depressions. They are only a figment of your imagination.

[magicarpet]

6. Price gouging at the gas pumps are right on track,...

.... just before midterm elections. Consumer confidence soon headed for the shitter.

The media message will be - the Dems have not yet mastered the intricacies of keeping the economy on the up swing. When the Rethugs are in control - the economy is gang busters and thriving. A businessman like tRump kept the economy thriving during his term in the Oval Office. When it comes to economic matters, the Dems have much to learn to keep the economy robust and consumers content.

[live love laugh]

8. Bingo ✔️

[Farmer-Rick]

10. I love your sarcasm

Do you think GOPers notice most economic crashes, at least the worse ones, happen on their watch? Probably not, they are too busy conning everyone.

[gay texan]

3. Just in time for the midterms

How quaint

[Journeyman]

4. "I am an old man and have known many troubles, most of which never happened," wrote Mark Twain . . .

Think I'll wait to hear the shoe actually drop before I get excited.

[UpInArms]

7. Just positing a marker

Am a watcher … and have seen a lot of economic signs … not certain if this is one, but worth a warning

[dixiegrrrrl]

14. What would the other shoe dropping look like to you?

Serious well intended question.

[RANDYWILDMAN]

9. Greedy mother f-ers

and you would have thought this stopped with the 08, but these people don't learn and they don't care !!!

[KentuckyWoman]

15. In my lifetime the financial industry blows up about every 15-20 years.

The explosion happens, we put some guardrails up on only what exploded. Someone comes up with a new or new again idea to stuff their pockets while everyone else is digging out not paying enough attention. They balloon it up again and then... kapow ... we start all over.

This particular one looks isolated but it does have the potential to ripple - depending on if the top of the economic food chain wants to use it for a purpose.

I know this whole point sounds like I slapped on a tin foil hat and joined a crazy train. I didn't come to this opinion lightly.

[IbogaProject]

11. It isn't of a scale of Lehman

But it could still be like blood in the water to bearish sharks, so it could start a panic. And the other point is when Lehman was faltering, many banks and financial firms were is similar positions, in this case CS is standing alone without any peers in a similar situation.

[uponit7771]

13. +1,

[FSogol]

12. Just some FUD to affect the midterms? FUD, FUD, FUD!

So what’s driving the fear mongering? Part of it is that the business seems to be doing badly as the investment bank has had persistent losses and poor performance that led to credit and stock downgrades. It makes sense, then, that its share prices have been on a steady decline. And as mentioned earlier, a notable part of that downward pressure is likely connected to online traders with overblown fears and concerns about this being another 2008 crisis.

and

So, it's unlikely that Credit Suisse will collapse or is even on the brink, but it is likely that it’ll suffer more pain as investors and traders overreact, cause some harm, smell blood in the water, and continue the feeding frenzy.

https://www.vice.com/en/article/y3p57m/reddit-thinks-credit-suisse-is-about-to-collapse-and-trigger-a-financial-crisis-like-2008