[resource0x]

If they don't bail it out, we will have Financial Crisis 2.0. Just the magnitude of derivatives portfolio of CS is enough to accomplish that. Panic ensues. Contagion will engulf other big banks, starting with DB. Will DB be allowed to fail too?

But if they do bail out, then other national banks will have to quickly bail out their banks, too. Almost every bank in the world will have to be bailed out.

Neither option is good.