Credit Suisse on the Brink.....Of complete collapse! Fresh off the the massive turmoil in the US banking system, with the collapse & seizure of three American banks, it seems this isn't only isolated to the US and there's a high probability of this contagion spreading far off the American shores. The European banks which were already in deep trouble and suffering, are now being hit with the fallout from the the US bank failures and a vote of no confidence from investors. And Credit Suisse seems to be the first to fall. The heavily indebted and much scrutinized CS which was already in a very precarious position prior to the failures in the US, is now feeling the squeeze & eventual consequences from that situation. This could be the final nail in their coffin that seals their fate!
No one should be surprised it has ended up this way for Credit Suisse, they've been on the verge of collapse for a few years and it was only a matter of time and some blackswan event or TRIGGER that would finish them off for good. As CS's fate has now been sealed, it will be interesting to see if the EU's Gov't "bails them out" as the Americans have done OR if the EU will let them fail. As i don't see any solution for CS that falls in the middle of those two options that would allow them to continue operating. So the following days should be very interesting to see how this developes.
Unfortunately for the Europeans, it doesn't stop here with CS or end here. They have many banks "in difficulty" and many more who are just ZOMBIE banks who been operating at huge losses for years, hanging on by a thread for dear life. Another example of this is Deuche Bank, and they COULD be next in line to fail. As for the Canadian, they're more resilient than their American & European counterparts, probable the only good thing in the Canadian financial ecosystem, partly due to the heavy restrictions & oversight placed on them. So even though their stock prices might take a heavy hit from all this fallout, they should be fine in terms of operating as a viable & stable going concern.
https://ca.finance.yahoo.com/news/credit-suisse-says-outflows-stabilized-062716520.html
https://ca.finance.yahoo.com/news/credit-suisse-default-swaps-18-093144418.html
GLTA