Credit Suisse Shares Crash as Banking Crisis Goes Global

[mystery-ak]

Credit Suisse Shares Crash as Banking Crisis Goes Global

John Carney 15 Mar 2023

Shares of Swiss banking giant Credit Suisse fell by more than 20 percent and the cost of insuring its bonds against default soared on Wednesday after its biggest shareholder said it would “absolutely not” provide additional support.

The decline brought shares to an all-time low. Concerns about the bank’s health and stability have been weighing on the stock for three months.

The most recent sell-off appeared to be triggered by remarks from the chairman of Saudi National Bank, the biggest shareholder of Credit Suisse, when asked if the Saudi bank was open to further capital injections.

“The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory,” Chairman Ammar Al Khudairy said in an interview with Bloomberg TV.

Al Khudairy said increasing his bank’s stake in Credit Suisse would bring an unwanted regulatory burden under Swiss, Saudi, and European laws.

more
https://www.breitbart.com/economy/2023/03/15/credit-suisse-shares-crash-as-banking-crisis-goes-global/

[mystery-ak]

Charles Gasparino
@CGasparino
·
37m
Breaking from a @CreditSuisse
 employee: “panic, meltdowns, people crying.”

[Kamaji]

What is the particular contagion that is putting Credit Suisse at risk?

[catfish1957]

What is the particular contagion that is putting Credit Suisse at risk?

Based on what I am hearing at least from FBN, is that Saudi's balking at deposits of Oil sales set off a speculative panic.  No accident or coincidence that the Chicoms just brokered a diplomatic deal between Iran and the Saudis.

Some parts of me are thinking, and maybe fearing we are in the beginning stages of flight from $USD as reference currency. Maybe the events of the past week have been test baloons, (nefarious as it sounds) around how this process would unfold.

I am especially watching close gold prices (now at $1928/oz) around any truly triggering events.

I did mention yesterday, that I thought it was extremely fishy that the 5 regional bank collapses triggered an almost instaneous circuit breaker event, and each (1) instanaenously recovered in near tandem and (2) BTC shot up at the same time.....   Hmmmmmmm....  Someone's moving assests around on a mass shell game basis.   I wonder who.....   

Addendum: KBE down only 3%.  So at least in hasn't hit home yet with the big boys!

[Kamaji]

Based on what I am hearing at least from FBN, is that Saudi's balking at deposits of Oil deposits set off a speculative panic.  No accident or coincidence that the Chicoms just brokered a diplomatic deal between Iran and the Saudis.

Some parts of me are thinking, and maybe fearing we are in the beginning stages of flight from $USD as reference currency. Maybe the events of the past week have been test baloons, (nefarious as it sounds) around how this process would unfold.

Addendum: KBE down only 3%.  So at least in hasn't hit home yet with the big boysl

I am especially watching close gold prices (now at $1928/oz) around any truly triggering events.

I did mention yesterday, that I thought it was extremely fishy that the 5 regional bank collapses triggered an almost instaneous circuit breaker event, and each (1) instanaenously recovered in near tandem and (2) BTC shot up at the same time.....   Hmmmmmmm....  Someone's moving assests around on a mass shell game basis.   I wonder who.....   

I'm not entirely sure why the Saudi bank refusing to put additional equity into Credit Suisse is per-se a bad thing.  I understand that Saudi National Bank currently holds a 9.9% interest in Credit Suisse.  It's been a long time since I looked at ownership triggers in bank regulation, but having its ownership percentage exceed 10% would most likely subject SNB to additional regulatory oversight, both in Switzerland and in those countries where CS has a presence, such as the U.S.  It might also trigger additional Saudi government oversight on the basis that SNB, by holding 10% or more of CS, is too exposed to the general risks of any portfolio company (a lot of bank regulations limit the percentage a bank can hold of any underlying investment or portfolio company).

As such, people who are selling simply because of SNB's announcement are letting themselves be goaded into selling without sufficient justification.

[catfish1957]

I'm not entirely sure why the Saudi bank refusing to put additional equity into Credit Suisse is per-se a bad thing.  I understand that Saudi National Bank currently holds a 9.9% interest in Credit Suisse.  It's been a long time since I looked at ownership triggers in bank regulation, but having its ownership percentage exceed 10% would most likely subject SNB to additional regulatory oversight, both in Switzerland and in those countries where CS has a presence, such as the U.S.  It might also trigger additional Saudi government oversight on the basis that SNB, by holding 10% or more of CS, is too exposed to the general risks of any portfolio company (a lot of bank regulations limit the percentage a bank can hold of any underlying investment or portfolio company).

As such, people who are selling simply because of SNB's announcement are letting themselves be goaded into selling without sufficient justification.

Hmmmmmm.....

Do the Saudi's that use Credit Suisse deposit their income as equity shares or deposits?  Wondering.....

[Kamaji]

Hmmmmmm.....

Do the Saudi's that use Credit Suisse deposit their income as equity shares or deposits?  Wondering.....

My understanding is that the head of SNB stated that they would not consider giving additional financial support to Credit Suisse because doing so would increase their regulatory burden.  Such financial support would normally come in the form of an additional equity investment, probably in the form of common stock or subordinated debt.  The increase in ownership percentage above 10% would draw additional regulatory scrutiny from the CS regulators, and increasing such a risky investment on the part of SNB would probably draw additional regulatory scrutiny from the Saudi banking regulators who have regulatory authority over SNB itself.

Nothing to do with where depositors would be depositing their money.

[catfish1957]

My understanding is that the head of SNB stated that they would not consider giving additional financial support to Credit Suisse because doing so would increase their regulatory burden.  Such financial support would normally come in the form of an additional equity investment, probably in the form of common stock or subordinated debt.  The increase in ownership percentage above 10% would draw additional regulatory scrutiny from the CS regulators, and increasing such a risky investment on the part of SNB would probably draw additional regulatory scrutiny from the Saudi banking regulators who have regulatory authority over SNB itself.

Nothing to do with where depositors would be depositing their money.

I got to step away from the TV....   This shell game is giving me a headache.   The world didn't learn squat in '08.

[Kamaji]

I got to step away from the TV....   This shell game is giving me a headache.   The world didn't learn squat in '08.

Unfortunately, that is 110% true.  Nothing was learned; oh, there were some nice speeches made, and people acted a little more prudently for a few years, but none of that had any lasting effect, and so now, here we are, about to fall into another financial pickle.

[Free Vulcan]

Based on what I am hearing at least from FBN, is that Saudi's balking at deposits of Oil sales set off a speculative panic.  No accident or coincidence that the Chicoms just brokered a diplomatic deal between Iran and the Saudis.

Some parts of me are thinking, and maybe fearing we are in the beginning stages of flight from $USD as reference currency. Maybe the events of the past week have been test baloons, (nefarious as it sounds) around how this process would unfold.

I am especially watching close gold prices (now at $1928/oz) around any truly triggering events.

I did mention yesterday, that I thought it was extremely fishy that the 5 regional bank collapses triggered an almost instaneous circuit breaker event, and each (1) instanaenously recovered in near tandem and (2) BTC shot up at the same time.....   Hmmmmmmm....  Someone's moving assests around on a mass shell game basis.   I wonder who.....   

Addendum: KBE down only 3%.  So at least in hasn't hit home yet with the big boys!

I read that Suisse has lost money for 5 quarters. Why I have not seen yet. Know the Saudis said no to any kind of further bolstering or bailout.

Current int'l banking and money flows are above my paygrade anymore. The complexity and opaqueness these days just leaves too much in the dark, but you can't at all rule out your scenario. The Saudis in particular are skittish and will do what they have to do to land on their feet.

[catfish1957]

I read that Suisse has lost money for 5 quarters. Why I have not seen yet. Know the Saudis said no to any kind of further bolstering or bailout.

Current int'l banking and money flows are above my paygrade anymore. The complexity and opaqueness these days just leaves too much in the dark, but you can't at all rule out your scenario. The Saudis in particular are skittish and will do what they have to do to land on their feet.

Good points....

I know I need to shed this tin foil hat for awhile, but did you see ESG's godfather Fink today send shareholders a message that due to this banking crisis, to expect a 3-5% inflation rate for the foreseeable future?  Talk about throwing gas on this dumpster fire.

It's like he and Klaus Schwab are  conspiring a NWO driven Run on Banks.

[Free Vulcan]

Good points....

I know I need to shed this tin foil hat for awhile, but did you see ESG's godfather Fink today send shareholders a message that due to this banking crisis, to expect a 3-5% inflation rate for the foreseeable future?  Talk about throwing gas on this dumpster fire.

It's like he and Klaus Schwab are  conspiring a NWO driven Run on Banks.

Didn't but not surprised. It's a cabal at the top of that food chain and they are pulling hard on the strings right now, and have a great deal of ability to do so.

Problem is it's easier to destroy than build, and stopping people who want to burn it all down and who have that much power is daunting.

[berdie]

I read that Suisse has lost money for 5 quarters. Why I have not seen yet. Know the Saudis said no to any kind of further bolstering or bailout.

Current int'l banking and money flows are above my paygrade anymore. The complexity and opaqueness these days just leaves too much in the dark, but you can't at all rule out your scenario. The Saudis in particular are skittish and will do what they have to do to land on their feet.

In every banking crisis, Suisse comes up. I don't know how the very intertwined relationships of banking work but it seems odd.

[mountaineer]

Disclose.tv
@disclosetv
JUST IN - European Central Bank raises interest rates by 0.50% to 3.50%.
9:16 AM · Mar 16, 2023

[sneakypete]

The international bankers (The BIG BOYS of banking/multi-billionaires) seem to be making their moves.

[sneakypete]

I did mention yesterday, that I thought it was extremely fishy that the 5 regional bank collapses triggered an almost instaneous circuit breaker event, and each (1) instanaenously recovered in near tandem and (2) BTC shot up at the same time.....   Hmmmmmmm....  Someone's moving assests around on a mass shell game basis.   I wonder who.....   

Addendum: KBE down only 3%.  So at least in hasn't hit home yet with the big boys!

@catfish1957

The "Big Boys" you mentioned are behind it. They are engineering another global Depression so they can buy up bankrupt properties and businesses at a dime on the dollar,and then allow the economy to slowly recover again so the cheap properties they bought are once again worth the mega-dollars they will sell them for.

[catfish1957]

The international bankers (The BIG BOYS of banking/multi-billionaires) seem to be making their moves.

The fact that KBE (the ETF for banks in the S &P 500) never dropped more than 5% at any point, adds some credence to that point.  But see my points below that might shed some light on "the big boys" potentially avoiding monopoly implications.

One item, that I noticed the other day while all this shit was going down, was when the 5 U.S. regional banks crashed, a little after 9 my time......     Circuit Breakers all went in effect simutaneously at the same time.  When trading reopened, they mostly all roared back.  BUT.......   at that same reopening, BTC (crypto) started shooting up.  That's some fishy stuff going on, and my guess, moves that wanted to be either stealthly hid, or were illegal as hell.

Seems no one on FBN, CNBC, or Bloomberg was picking  up on this.

[sneakypete]

Good points....

I know I need to shed this tin foil hat for awhile, but did you see ESG's godfather Fink today send shareholders a message that due to this banking crisis, to expect a 3-5% inflation rate for the foreseeable future?  Talk about throwing gas on this dumpster fire.

It's like he and Klaus Schwab are  conspiring a NWO driven Run on Banks.

@catfish1957

Say hit ain't so!

Do you  really think honorable banking gentlemens like that wood do sumptin like dat?????

Why,next ting we no,peepuls will be sayin dey ain't no such critter as Santa!

[sneakypete]

Didn't but not surprised. It's a cabal at the top of that food chain and they are pulling hard on the strings right now, and have a great deal of ability to do so.

Problem is it's easier to destroy than build, and stopping people who want to burn it all down and who have that much power is daunting.

@Free Vulcan

Give the fact that it would HAVE to be the politicians of today who are the only ones with the power to stop them,and these same politicans are even more corrupt than the international banking cartels,I would say that is impossible to stop them.

I would also suggest that everyone that is in a position to do so should immediately pay off as many debts as possible, especially those on "Real Property". Inflation IS going to be a brass-plated bitch some time soon. Probably starting now,but will have a head of steam going within a year or two as businesses begin to collapse and jobs begin to disappear.

[catfish1957]

Disclose.tv
@disclosetv
JUST IN - European Central Bank raises interest rates by 0.50% to 3.50%.
9:16 AM · Mar 16, 2023

ECB normally plays it closer to vest than our Clown Car Fed.  And to go 300 basis points.  I don't ever remember ever seeing that level of knee jerk before.

They are pretty much matching our 10/30 notes, so the next concern does this become a world wide bidding war for liquidity?

And to think this is all on Joe Biden, and his day 1 EO's that started triggering these dominos. 

[Kamaji]

ECB normally plays it closer to vest than our Clown Car Fed.  And to go 300 basis points.  I don't ever remember ever seeing that level of knee jerk before.

They are pretty much matching our 10/30 notes, so the next concern does this become a world wide bidding war for liquidity?

And to think this is all on Joe Biden, and his day 1 EO's that started triggering these dominos. 

They went up 50 basis points, not 300 basis points.

[Free Vulcan]

They are pretty much matching our 10/30 notes, so the next concern does this become a world wide bidding war for liquidity?

Can't give an example but know it's not the first time it's happened, except the world financial position wasn't teetering off the edge of the cliff.

I never forget that alot of these financial bureaucrat pukes are chalkboard smart, market/economy stupid, and almost always myopic.

[catfish1957]

They went up 50 basis points, not 300 basis points.

Sorry...  I read it wrong, was thinking I saw .5 to 3.5.

[Kamaji]

Sorry...  I read it wrong, was thinking I saw .5 to 3.5.

I read it the same way too, the first time; however, I know I need new glasses, so I tend to read surprising things several times to make sure I'm actually reading what's there.

[catfish1957]

I read it the same way too, the first time; however, I know I need new glasses, so I tend to read surprising things several times to make sure I'm actually reading what's there.

Same here, and I realized that common sense should have told me that a 300 basis point increase in any monetary policy would not only be news but, pretty earth shattering (like in Zimbawe terms)