Credit Suisse Crashes Most Ever After Admitting It Suffered A Bank Run And Breached Liquidity Requirements
Two weeks ago, the NYT mocked “amateur investors” for piling up in a historic, “meme” short bet against the troubled Swiss bank Credit Suisse, which it argued was nowhere near as distressed as rumors suggested and when discussing the violent plunge in the stock price said that “the timing puzzled the bank’s analysts, major investors and risk managers. Credit Suisse had longstanding problems, but no sudden crisis or looming bankruptcy.”
Well, in retrospect it did, because as today’s shocking “radical overhaul” by Credit Suisse – which included massive layoffs, new equity injection, a strategic outside investors (apparently Saudi money talks and fake woke anger about Jamal Khashoggi walks), and a complete business restructuring – showed, the second largest Swiss Bank was indeed on the brink.
And it wasn’t just on the brink of insolvency: as Bloomberg today also reports, the (former) Swiss banking giant, was this close to a liquidity crisis too!
On Thursday, Credit Suisse said one or more of its units breached liquidity requirements this month when depositors pulled their money amid speculation about the lender’s turnaround plan.
Translation: the bank admits it suffered a bank run, something which the NYT shoudl have been reporting on instead of mocking all those who were shorting the bank to oblivion… and as we now learn, with justification.
According to a bank statement, the withdrawals were triggered by “negative press and social media coverage based on incorrect rumors” and made worse because the bank had limited its access to debt markets in the weeks before it unveiled its restructuring plan. Liquidity and funding ratios for the group as a whole have been maintained at all times.
But… but… how is it “incorrect rumors” if the Swiss bank ended up having a bank run, the very thing said rumors were warning about.
Circular sarcasm aside, we appreciate the bank’s “explanation” but if all it took to put a giant bank out of business was “negative press and social media coverage” then not a single bank would exist today. Which begs the question: why is Credit Suisse once again prevaricating, especially since it just admitted its entire former business model was just hours away from total collapse.
“These outflows have partially utilized liquidity buffers at the group level and legal entity level, and we have fallen below certain legal entity-level regulatory requirements,” the bank said.
Sorry, bank, but if all it takes for your liquidity to fall below legal regulatory requirements are a few tweets, then you probably shouldn’t exist in the first place. Which, incidentally, is the hard lesson that those who believed the NYT and bought the stock – because, you see, it was all meme traders’ fault – are learning today: the Swiss stock just tumbled the most on record.
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GUNS N GEAR
So which two banks have suffered “runs” and liquidity crises in the last two weeks? Credit Suisse and the BOE (Bank of England). What do they have in common? They are outside of the ECB system. Think about who might want these two banks to fail. Do the WEF and the EU globalists ring a bell? The Fed gave CS a swap line to reliquify their system, they didn’t do this for the BOE. Why? The BOE did not want this as they deliberately pulled the plug on Truss and Kwarteng because they wanted them gone, and placed one Jeremy Hunt as the new Exchequer, and forced the resignation of Truss, “electing” WEF puppet Rishi Sunak to the post of PM, all with the approval of Charles III, another gobalist. Brexit is done, and the remainers have won.
The Fed and the Commercial banks in the US are in a financial war with the globalists and the WEF as they do not want to have their business subsumed by the Eurocrats and the European banking system as identified by the BIS (Bank of International Settlements). The Fed is raising rates to dry up liquidity in the EU and break the ability of the EU aristocracy from putting them out of business. Listen to the people decrying the Fed’s actions, especially here in the USA. Most are aligned with the globalists. If the Fed can break the globalists by destroying their ability to use the Eurodollar market to keep their power, and sparking a Euro debt and currency crisis, then the EU and the European aristocracy will not succeed in destroying the US and making it into a subsidiary or “colony” of Europe again.
IMO, this is the powerplay behind what is going on in the banking system worldwide. The Fed is giving swap lines to banks in Japan, S. Korea, Switzerland etc. but none at all to the EU aligned banks. To me this is a tell as to what the real game is. I may be way off base, but the longer that the Fed continues its actions, the more this seems to be the case.
Spot on.