Another banking sector collapse?

[TxRover]

On 14/03/2023 at 09:48, topcat(The most tip top) said:

In other parts of the world even tiny institutions had to comply with all the new regulations brought in by the Basel III agreement

In the United states smaller "Community Banks" were largely exempted 

Presumably because they weren't considered too big to fail. 

Silicon Valley Bank was about as big as a bank could get while still not having to deal with all that extra annoying paperwork

It was required to comply, but in 2017 The Donald signed a bill quintupling the value for that regulation, putting SVB under the new limit. The bill was passed mainly by Republican votes with a few a Democratic votes.

[Ross.]

7 hours ago, alta-pete said:

 Credit Suisse. @Ross.? 

Written off long ago here and the butt of a considerable amount of jokes for years. Most I know are surprised they have made it this long without this happening, and certainly in the last year or two pretty much everyone in my line of work has been trying to reduce the amount of contracts open with them. The Swiss government have said they won’t bail them out, but there will be moves to protect the stuff that affects exclusively Swiss operations, though what that means in practice, f**k knows.

[hk blues]

14 minutes ago, Ross. said:

Written off long ago here and the butt of a considerable amount of jokes for years. Most I know are surprised they have made it this long without this happening, and certainly in the last year or two pretty much everyone in my line of work has been trying to reduce the amount of contracts open with them. The Swiss government have said they won’t bail them out, but there will be moves to protect the stuff that affects exclusively Swiss operations, though what that means in practice, f**k knows.

Is this still the case - below article seems to suggest it will 

LONDON, March 16 (Reuters) - Switzerland's radical pledge to bankroll Credit Suisse Group AG has won the embattled lender the chance to resurrect itself from an almost complete collapse in confidence that rattled global markets.

[Ross.]

44 minutes ago, hk blues said:

Is this still the case - below article seems to suggest it will 

LONDON, March 16 (Reuters) - Switzerland's radical pledge to bankroll Credit Suisse Group AG has won the embattled lender the chance to resurrect itself from an almost complete collapse in confidence that rattled global markets.

That’s a hell of a change in tone from what they have been saying for quite a while, but I’m struggling to find anything that gives any real detail. Probably those middle eastern boys who can’t go above 9.9% ownership coming up with some creative solution to their issues, if you ask me.

[coprolite]

19 minutes ago, Ross. said:

That’s a hell of a change in tone from what they have been saying for quite a while, but I’m struggling to find anything that gives any real detail. Probably those middle eastern boys who can’t go above 9.9% ownership coming up with some creative solution to their issues, if you ask me.

What's the point in having all that Nazi gold if they don't use it? 

[Ross.]

17 minutes ago, coprolite said:

What's the point in having all that Nazi gold if they don't use it? 

Meh. Might have helped the Swiss get off their knees 80 years ago but finance is small time here now relative to other parts of the economy. Any action taken on CS is either the result of serious political pressure from outside Switzerland, or some daft misty eyed nostalgic boomers making decisions off the back of a bottle of red wine.

The second option is unlikely.

[hk blues]

3 minutes ago, Ross. said:

Meh. Might have helped the Swiss get off their knees 80 years ago but finance is small time here now relative to other parts of the economy. Any action taken on CS is either the result of serious political pressure from outside Switzerland, or some daft misty eyed nostalgic boomers making decisions off the back of a bottle of red wine.

The second option is unlikely.

Almost certainly the 1st - the markets are already jittery following last week's events in the US so the collapse of a perceived big player like Credit Suisse would set the cat amongst the pigeons big time.   

[Satoshi]

It's a shame because Credit Suisse is a much cooler name than UBS.

Laxer dress code too

With regards to SVB it's your standard case of capitalism when winning and socialism when losing, ideally they would get some equity state to get some upside from protecting deposits but doesn't seem too likely.

Shares took a fairly big dive after a big purchase I made last week

Still the actions of the Swiss and US governments have prevented a wider contagion which is good, but further highlights how rigged the system is for equity owners.

[ICTChris]

Times are hard, they might need to dip into the deposits of Nazi gold.

[beefybake]

8 hours ago, Ross. said:

That’s a hell of a change in tone from what they have been saying for quite a while, but I’m struggling to find anything that gives any real detail. Probably those middle eastern boys who can’t go above 9.9% ownership coming up with some creative solution to their issues, if you ask me.

My understanding was that 'a major power' strongly asked the Swiss government to 'do something'. 

The US presumably, as the shit show started with them.

[beefybake]

2 hours ago, beefybake said:

My understanding was that 'a major power' strongly asked the Swiss government to 'do something'. 

The US presumably, as the shit show started with them.

Next up..., First Republic.

https://www.theguardian.com/business/2023/mar/16/first-republic-biggest-us-banks-weigh-rescue

[Ross.]

6 hours ago, beefybake said:

My understanding was that 'a major power' strongly asked the Swiss government to 'do something'. 

The US presumably, as the shit show started with them.

Probably the US, with the Saudis promising to cover the costs somehow.

ETA: it’s possibly worth noting that the SNB is actually a private entity and not a government department. There’s a fairly convoluted ownership structure involved and there is a lot more independence from the government there than there is with the BOE for example. Politics will definitely have played a part but it’s not as straight forward as it would be elsewhere.

Edited March 16, 2023 by Ross.

[Ross.]

UBS effectively taking over CS. Didn’t see that one coming. Work will be fun for the next few weeks.

[ICTChris]

[ICTChris]

Lol

[Michael W]

43 minutes ago, ICTChris said:

Lol

The KYC checklist needs some adjustment. 

[Ross.]

30 minutes ago, Michael W said:

The KYC checklist needs some adjustment. 

I think This is the sort of red tape that Brexit is hoping to finally get round to removing for the guys in London. I’m just disappointed that I work for a broker and not a bank. The bribes paid to get that through would have eye watering…