[thwayunion]

Credit Suisse is in free-fall. Down 83% in fixed income sales and trading. Down 95% in equities sales and trading. Down by half in M&A. On trial for cocaine dealing.

A bank losing all its income and going down in a criminal probe into a coke dealer. It'd be a good SNL skit if there weren't so many lives on the line.

It's amazing a bonus pool exists at all.

[moralestapia]

>On trial for cocaine dealing.

https://www.reuters.com/business/finance/court-convicts-cred...

"A former employee was found guilty of money-laundering in the trial, which included testimony on murders and cash stuffed into suitcases [...]"

Whew!

[uejfiweun]

Could they potentially collapse? Or are they too big to fail as well? Not sure how it works when it comes to non-US megabanks.

[toomuchtodo]

Too Big To Fail. Swiss government will prop them up.

https://www.reuters.com/business/finance/swiss-govt-proposes...

[JumpCrisscross]

> Swiss government will prop them up

Unlikely. The article describes a lender-of-last-resort mechanism more than a bail-out [1]. It comports with the EU's ELA [2]. It's an exorbitant privilege, for sure, but not TBTF.

[1] https://www.efd.admin.ch/efd/en/home/the-fdf/nsb-news_list.m...

[2] https://www.ecb.europa.eu/pub/pdf/other/ecb.agreementemergen...

[toomuchtodo]

I will bet you an adult beverage of your choice if push comes to shove, they will rescue CS.

[JumpCrisscross]

> if push comes to shove, they will rescue CS

Depends on the circumstances. If they manage to take someone else (read: UBS) down with them, probably. If they blow up on their lonesome, probably not.

[dmurray]

Collapse as a business, sure, but its portfolio probably won't go underwater. It's failing in a different way from a bank that takes on too many bad loans and can't fund its liabilities.

A merger with UBS was mooted once. Now it looks more likely UBS is waiting for it to fall completely and pick up the good bits on the cheap.

[nik736]

They will collapse sooner rather than later and the gov has to save them

[akiselev]

> On trial for cocaine dealing.

#1 rule of banking: never get high off your own supply.