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by uejfiweun 1229 days ago
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.
3 comments

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

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

> 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...

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

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.

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