This Bank May Put The Entire Global Financial System At Risk
Credit Suisse (CS) is the number two Swiss banking giant. It is one of the largest banks in the world
It's stock price has fallen by 56% in one year to $3.92. Its Market cap is now just USD 10 bn
It's key employees are leaving the bank. The CEO said "this is a critical moment" for the bank.
It's CDS (Credit Default Swap) Spreads which indicate the risk of default has reached a 14 year high touching levels last see in 2008.
In 2008 Lehman Brothers collapsed and the entire financial system went in a shock and the stock market collapsed.
Rising interest rates is putting pressure on weak banks. With interest rates likely to rise further the fate of CS hangs in balance.
The bank has faced several setbacks in the recent past including a scandal.
According to the Wall Street Journal the bank has a capital buffer of $100bn but the market is so far not convinced on the survival of the bank.
Follow us on
Join WhatsApp Group