Will Credit Suisse Implode, Sinking Europe? By Richard Miller (London)
The Swiss bank, Credit Suisse, Switzerland’s second largest bank, may be facing collapse, as the company sent shivers down the metallic spines of the financial community, by announcing that there was a “material weakness” in its operations. Like clockwork, shares crashed to an all-time low.
According to Credit Suisse, the “weakness” arises from a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements.” In short, the bank is suffering from the same faults as led to the US banks collapsing. And if Credit Suisse does collapse, the European economy will, according to a report by Bloomberg Markets Live, “fall off a cliff.”
As we have been saying, the globalists are cheering the cascading bank collapses on, as it paves the way for Central Bank Digital Currencies, and total New World Order control of the world for them.
“It is looking increasingly likely that Swiss banking giant Credit Suisse will be the next big bank to fall, in which case the European economy will fall off a cliff, according to Bloomberg Markets Live reporter and strategist Ven Ram.
Europe will be the first to feel what Ram ominously described as an upending of the global financial system, resulting in major central banks bringing their policy tightening “to a screaming halt.”
“Unlike Silicon Valley Bank and Signature Bank, the Swiss lender is classified as systemically important by the U.S. Financial Stability Board – meaning it’s too big to fail as a collapse has the potential to trigger a financial crisis,” Ram explained.
On Wednesday, March 15, European Central Bank officials made contact with lenders to ask about their financial exposure to Credit Suisse. The bank reported that its assets under manage are nearly 1.3 trillion Swiss francs, or the United States equivalent of around $1.4 trillion. This amounts to nearly 10 percent of the 14.5 trillion euro-area economy.
This announcement resulted in an immediate spike in Credit Suisse’s 1yr Sr CDS, which represent the cost of insuring the bank’s debt against default for another year, by a record 2,728 basis points. Conversely, the company’s shares tumble to a record low while its bonds plunged to levels that Ram said are “typically associated with distress.”
All of this occurred following comments made by Saudi National Bank, which is Credit Suisse’s top shareholder. That bank announced that it has no intention of investing any more money into the Swiss lender, which is currently in the throes of a complex three-year restructuring that aims to return Credit Suisse back to profitability.”