[SeanAnderson]

So, is Credit Suisse considered "too big to fail?" If no, are there any ramifications if it were to collapse? It seems like the writing has been on the wall for a while now, so I would hope preparations have been made and it would not be catastrophic, but it's honestly a little crazy to see a ~170 year old institution getting this close to shuttering.

[microtherion]

In theory, after the 2008 bailout, the Swiss people were promised that this would be the last time, and next time the bank(s) in question would be wound down.

I'm not super optimistic this actually is going to happen. On the other hand, in contrast to 2008, UBS, the other large bank, is not in crisis right now, so the argument that it's an enterprise rather than a sector problem is much stronger.

[c7b]

In theory, there exist firm plans to do an orderly resolution that can result in a market exit should the bank not be able to survive: https://www.finma.ch/en/enforcement/recovery-and-resolution/...

In practice, it'll be interesting to see.

[NoboruWataya]

There will certainly be ramifications. Whether CS is "too big to fail" will determine the extent of those ramifications. TBTF generally means that a bank's failure is liable to bring down the entire economy. But any large bank, even if not strictly speaking TBTF, will cause plenty of pain if it fails, both for those who save/invest with it and those who rely on it for financing.

[nxm]

It’s a source of pride for the Swiss, and hence Swiss government won’t let it fail no matter how poorly it’s managed.

[microtherion]

There may be Swiss people proud of Swiss banking as an abstract concept, but I'd be surprised if much of that extended to Credit Suisse in particular as a concrete bank. Given that the overall economy is quite good, there might be a certain appetite even in business friendly circles to let a badly run bank fail pour encourager les autres, but its size would make such a failure fairly difficult to handle.

[sschueller]

I don't think so. Maybe some banks but not CS and not UBS. In fact you may as well rename "Credit Suisse" to "Credit Saud" at this point.[1]

[1] https://www.swissinfo.ch/eng/business/-just-another-cheque--...

[tdrz]

So true, I just wonder how will they package it for the voters.

[khmii]

I can't imagine them being bailed out because they really aren't too big to fail.

A bank like Citi in 2008 really was too big to fail without imploding the entire system given the circumstance.