Credit Suisse anyone?

RickMac

Rumours abound on social media over the last few days that Credit Suisse is on the verge of collapse with Banco Santander and/or Deutsche Bank not far behind.

Does anyone here have any better (inside) information than the social media rumour machinery? Is this Europe's Lehman moment? 

Been reading other stuff today by Credit Suisse frantically pushing back against this, but then they would wouldn't they.

Might all be nothing, but thought it worth a question here given the current volatile economic climate over here. If one were to 'fall' then it would undoubtedly start a domino effect and a panic run on all the major banks whilst the shrewd/crude/cruel/traders will be shorting currencies like mad in the hope of making a killing.

https://www.msn.com/en-us/money/savingandinvesting/would-credit-suisse-collapse-mean-a-repeat-of-2008/ar-AA12xtvj
https://seekingalpha.com/article/4544399-credit-suisse-deep-trouble-not-lehman-moment

Zanderman

Well, I wouldn't ever, rely on social media rumours for news. Not sure why anyone does as it's a really rubbish way to get news.

And on this issue there's no need to, as actual real news channels are reporting Credit Suisse has problems.

See for example https://www.theguardian.com/business/2022/oct/03/credit-suisse-ceo-reassures-staff-bank-has-solid-balance-sheet-amid-market-speculation or https://www.telegraph.co.uk/business/2022/10/02/bank-england-monitors-credit-suisse-amid-market-turbulence/ or https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83 or https://www.bbc.co.uk/news/business-63117352

Whether those problems will get worse and become a bigger issue is not clear. No-one on here is likely to have inside knowledge!  And if someone claimed they did it would just be social media rumour again (this is merely an online forum with people's thoughts and opinions, it's not a news channel).

Daliah

Which current or other account(s) do you hold with Credit Suisse, @RickMac?

RickMac

Daliah said:

Which current or other account(s) do you hold with Credit Suisse, @RickMac?

I didn't actually say I have one, BUT my daughter does. I was on secondment to the Swiss Air Force for a while many moons ago and based at Emmen and she was born there; latterly she chose to go back and now lives/works in Lucerne - she has a mortgage with them.

RickMac

Zanderman said:

Well, I wouldn't ever, rely on social media rumours for news. Not sure why anyone does as it's a really rubbish way to get news.

And on this issue there's no need to, as actual real news channels are reporting Credit Suisse has problems.

See for example https://www.theguardian.com/business/2022/oct/03/credit-suisse-ceo-reassures-staff-bank-has-solid-balance-sheet-amid-market-speculation or https://www.telegraph.co.uk/business/2022/10/02/bank-england-monitors-credit-suisse-amid-market-turbulence/ or https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83 or https://www.bbc.co.uk/news/business-63117352

Whether those problems will get worse and become a bigger issue is not clear. No-one on here is likely to have inside knowledge!  And if someone claimed they did it would just be social media rumour again (this is merely an online forum with people's thoughts and opinions, it's not a news channel).

Well that told me    "a really rubbish way to get news"

The mainstream media is far from impartial these days and a minor step above social media IMHO. I prefer to gather information from ALL sources actually, then sift for diligence, rather than rely on one.

Much content in the "actual real news channels", aka MSM, these days is either 'opinion' and/or compromised in some way or other by sponsors/ownership - funding is the tail that wags the dog. 

https://www.opendemocracy.net/en/opendemocracyuk/five-reasons-why-we-don-t-have-free-and-independent-press-in-uk-and-what-we-can-do-about/

https://www.anewseducation.com/post/uk-media-ownership

 

As you stated "this is merely an online forum with people's thoughts and opinions" and that is exactly what I was expressing. Your disdain for the same, whether accidental or intentional, is noted. Each to their own. 

ForumUser7

When you say Banco Santander, does this include Santander UK please, or just the European version please? Thank you

penners324

Credit Suisse is vastly bigger than Santander Group.

If Credit Suisse goes under it will cause severe repercussions in the global economy. 

RickMac

ForumUser7 said:

When you say Banco Santander, does this include Santander UK please, or just the European version please? Thank you

I have been searching for any more up-to-date information and the attached links - referring to the same statement from the CEO claiming "liquidity in the banking sector was "extraordinarily high" and therefore did not see contagion risks in the sector."

https://www.reuters.com/markets/rates-bonds/santander-ceo-does-not-see-contagion-risks-stemming-credit-suisse-2022-10-04/?taid=633c2ad6e9289400014becde&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter 

The attached screen grab compares the three at the close of play on the LSE today and Santander was faring better than the other two - but you know what the markets are like - all down to customer belief in the end.

As the 4th largest banking group in Europe and 12th in the world, they should have 'room to manoeuvre' and borrow if/where necessary - but don't quote me.

TheBanker

penners324 said:

Credit Suisse is vastly bigger than Santander Group.

If Credit Suisse goes under it will cause severe repercussions in the global economy. 

I think it's the other way around. https://en.wikipedia.org/wiki/List_of_largest_banks has Santander at 16 and Credit Suisse at 41. There are, however, several ways to measure the size of a bank.

ForumUser7 said:

When you say Banco Santander, does this include Santander UK please, or just the European version please? Thank you

Banco Santander (the Spanish parent company) own Santander UK plc. But Santander UK plc is a UK subsidiary, fully regulated in the UK, fully ringfenced from its Spanish parent group and, importantly, fully protected by the Financial Services Compensation Scheme. So as a retail depositor they are as British as Barclays and Natwest.

If you are a shareholder then you are exposed to the parent company.