Their problems just get worse. It’s making losses and having liquidity problems as there is a mini run on the bank:
Second largest bank in Switzerland apparently!
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These guys are large and world-wide. Banks are not known to be magnanimous to clients in trouble and should not expect their clients to risk their own assets in order to throw life rings to banks. Its stress does create situations where their moral compass may be more flexible than usual (and it’s not been known as always pointing to north in the past) and regulators should keep more vigilant than usual.
Jeff
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For months the Federal Reserve has been bailing out The Swiss Central Bank by currency swaps, but it doesn’t seem to have solved the problem. In addition the counterparty risk has now been spread far and wide:
Credit Suisse is one bank whose demise I would celebrate. Around 1978 my Mom authorized broker White Weld & Co. to manage $50,000 bond account. In turn White Weld had Credit Suisse manage the account. A year later my Mom handed me the account’s statement saying she could not figure it out.
Credit Suisse had churned the account which lost my Mom five or ten percent, I no longer remember the number. When we complained to our broker he said that he could not be held accountable for Credit Suisse’s management of the account. We transferred the account to our other broker. He commented that he had heard other horror stories about Credit Suisse.
BTW, one of the bonds was issued by Ontario Hydro in Canadian dollars. To add injury to injury, the Canuck was losing value so even with the hefty divided it lost value in US$.
Lessons, don’t let anyone manage your money, don’t gamble with ForEx,
The Captain
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If that happened the world’s financial system would collapse. Credit Suisse is one of the top 100 systemic banks in the world!
That’'s how they keep the world under control, firmly by the gonads!
Enjoy!
The Captain
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A Shiny business practice. Happens frequently. Some years ago, I commented about how my aunt’s USian broker was churning her account, on top of collecting a four figure/year fee from her.
But when “big gummit” tried to pass legislation requiring investment advisors managing people’s retirement accounts be held to a fiduciary standard: putting their client’s best interests first, the financial industry had an apoplectic fit, and torrents of lobbyist money flowed until the idea of holding the financial industry accountable for anything was dropped.
Steve
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A good reason for never buying financial products!
DIY investing!
The Captain
Ayup. Both of the brokers I use for self-directed accounts assigned me to “investment advisors”. Periodically I receive voice mails (I don’t answer the phone) and e-mails from them. My “delete” buttons get plenty of use.
Steve
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I knew if I hung around long enough we would finally agree on something!! 
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The Captain
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