Banks failing: Lessons learnt from the Credit Suisse collapse

Banks failing: Lessons learnt from the Credit Suisse collapse - Part 1

"The bank merger and its implications

Although it is too early to judge the full impact of this deal; we can, however, state the following:

Credit Suisse is a TBTF bank, the second-largest Swiss bank and employs 50,000 workers around the globe and 17,000 in Switzerland. UBS’s acquisition comes with the aim of shrinking Credit Suisse’s core business (investment banking), or in the words of UBS Chairman Colm Kelleher: “(…) UBS intends to downsize Credit Suisse’s investment banking business and align it with our conservative risk culture”.
UBS will be able to reinforce its position in investment banking. The takeover will allow UBS to target the Asian and American market while becoming “the world’s leading wealth manager with $5 trillion of invested assets”, according to CNN."

Bailouts, mergers, what next?

The Credit Suisse collapse occurred because the alarm bells failed to ring properly. There is the feeling that FINMA’s detection of the problem was too little too late. Also, the fact that it is ultimately the SNB that is left to deal with the dirty laundry when the horse has already bolted, raises the question of the role of the Swiss watchdog and its firepower in preventing similar situations.

This is more alarming if we consider that the bank acquiring Credit Suisse is a bank that was bailed out by the taxpayers and the SNB just a few years ago following the 2008 financial crisis in similar circumstances. Adding pressure is the fact that the merger of two of the largest Swiss banks will now create one gargantuan bank, and if red flags fail to signal problems again, the room for maneuver will be very tight indeed"

SOURCE:

https://hospitalityinsights.ehl.edu/banks-failing-lessons-learnt-credit-suisse-collapse-part-1

Comments

🏗️ Corporate Complicity in Genocide: The Global Economy Behind Gaza’s Ruin.

📅 July 5, 2025 “We are witnessing not just genocide in Gaza—but a genocide made profitable.” — UN Special Rapporteur, A/HRC/59/23 “This report is written from the heart of darkness . It is penned with a broken hand from a broken land for a broken people . But its words are not broken . They are the words of law and of longing . They are the words of those who are not yet silenced . It is written for Palestinians , first and foremost. It is also addressed to those who remain silent , indifferent or complicit . And it is a call to action for those who are not.” — Introduction, UN Report A/HRC/59/23 In an unprecedented and unflinching report to the UN Human Rights Council, the Special Rapporteur on the Occupied Palestinian Territory has laid bare the truth that much of the world’s corporate, academic, and financial architecture is actively complicit in Israel’s occupation, apartheid, and now, genocide in Gaza. This isn’t just about military aggression . This is about the mac...

Tumbling of American Banks amid weak economic data that sparks recession fears.

" Citigroup led big bank losses with a near 5 per cent fall. Wells Fargo, Morgan Stanley and Goldman Sachs fell about 4 per cent each, while JPMorgan Chase and Bank of America declined 2.7 per cent and 3.5 per cent, respectively. Lenders typically feel the squeeze as recessions heighten concerns over credit losses due to higher unemployment, while loan demand – a key factor in profitability – also takes a beating." https://www.businesstimes.com.sg/companies-markets/banking-finance/us-banks-tumble-weak-economic-data-sparks-recession-fears

The Ceasefire of Exhaustion: When Empires Collapse from Within

By Malik Mukhtar — ainnbeen.blogspot.com Two years after Gaza was first set on fire , the war that began with biblical vengeance has stumbled to an exhausted ceasefire . On October 9, 2025 , Israel and Hamas — after endless carnage, famine, and rubble — have signed the first phase of a ceasefire agreement mediated in Sharm el-Sheikh . Trump called it a “ historic peace plan. ” History may call it a truce of attrition — a war that collapsed under the weight of its own hubris. What the Ceasefire Says — and What It Doesn’t Under the agreement, Israeli forces are to pull back to a designated “yellow line” within 24 hours of cabinet ratification. Hamas, in turn, will release all remaining hostages — alive or dead — within 72 hours after the withdrawal. Israel will free about 2,000 Palestinian prisoners, though it made sure to exclude political figures like Marwan Barghouti , whose freedom would remind the world that Palestine still breathes. Humanitarian convoys — food,...

WORLD OF EXCESS. Quotes of Corrine Maier

" we live in a world of excess: too many kinds of coffee, too many magazines, too many types of bread, too many digital recordings of Beethoven's Ninth, too many choices of rearview mirrors on the latest Renault. Sometimes you say to yourself: It's too much, it's all too much." ~ " We live in a society of ants, where working and reproducing represent the ultimate objective of the human experience. Work is the opiate of the people; will children be their consolation? A society where life consists of earning a living and raising your kids is a society with no future, since it has no dreams. Having a child is the best possible way to avoid asking what the meaning of life is, as everything revolves around that child, who is a marvellous substitute for the existential quest." "When you are "recruiting" people in temporary positions for the firm ( short term contracts, free lancers) treat them well, remember: they are the ones who actually do a...

The Cracks Are No Longer Hairline

For decades, Washington treated support for Israel as something beyond debate. It was political scripture. Republicans defended it. Democrats defended it. Presidents came and went, wars came and went, thousands died, settlements expanded, Gaza burned, and the checks kept arriving. Questioning the arrangement was once political suicide. Now the walls are cracking. This week, more than half of House Democrats either voted to end U.S. aid to Israel or refused to oppose doing so. The amendment failed, but something far more important succeeded. The illusion collapsed. For years, American politicians insisted that criticism of Israeli government policy belonged only to "the fringe." Apparently the fringe has become half the Democratic caucus. History has an unusual sense of humor. The same establishment that spent years dismissing students, academics, humanitarian workers, doctors, journalists, and millions of protesters as naïve, radical, or antisemitic now finds itself strugglin...

Ainnbeen

Search This Blog