FTX followed, with the second Swiss bank “Credit Suisse”, which announced the elimination of 9,000 jobs and a radical restructuring, to avoid the bankruptcy which threatens it.
Credit Suisse and the casino of global finance, but in pun, “Credit Suisse” will become “Debit Suisse”.
Published on 20.11.2022
Second Swiss bank, the bank Crédit Suisse announced on Thursday the elimination of 9,000 jobs and a radical restructuring, to avoid the bankruptcy which threatens it following financial scandals.
Time pays off that the restructuring of Credit Suisse could be very costly, not only to its employees around the world, but perhaps also to a significant part of its private clients, and even, ultimately, to all taxpayers in Switzerland.
Why is Credit Suisse close to bankruptcy? If the rumor is proven, it is the assured crisis.
Credit Suisse and the casino of global finance
First of all, a significant part of the staff working for Credit Suisse will have to go out of business, although the majority of this work force is in no way responsible for the serious financial problems which their dismissal is supposed to help solve, but which stem in reality the choices of the senior managers of this bank of Swiss origin – which today is Swiss only in name.
Venezuelans linked to corruption within PDVSA may have used previously unknown Credit Suisse accounts to acquire real estate in the United States.
Swiss version of the washing machine. Save the soldier Swiss credit (who is American, Qatari, Saudi)…
This situation may also lead to increased costs for businesses, especially small and medium-sized businesses, which will want or need to seek another bank from which to obtain the necessary lines of credit for the financing of their own production. This change of banking institution generally involves an increase in the debit interest rate, since the new bank does not know the history of the debtor company. Hence an additional factor pulling consumer prices upwards, insofar as companies that will have to pay higher interest rates will thereby increase the selling price of their goods or services. It is therefore all consumers in Switzerland who will be negatively affected, at a time when the factors of the increase in the cost of living are already numerous and difficult to solve for the common good.
What is more, we cannot exclude that the Confederation – with the support of the Swiss National Bank (SNB) – will have to intervene to “save the furniture” of Credit Suisse, particularly with regard to asset management, even if it means abandoning a a large part of its investment banking activities, activities which are at the root of its financial problems. In this respect, the UBS rescue plan (in October 2008) could inspire the federal authorities, with the hope (which this time has little chance of materializing) of making profits altogether. This is what seems to have been the case during the liquidation of the toxic assets that UBS had been able to put in a ” bad bank called SNB StabFund, where SNB is the acronym for SNB – the same acronym for Saudi National Bank, the largest commercial bank in Saudi Arabia that recently became Credit Suisse’s largest shareholder, with almost 10% of the stock of its share capital.
As Professor Marc Chesney explained in Time of October 14, 2022, the financial difficulties of Credit Suisse illustrate the debacle of Casino Suisse. It would be wise for Credit Suisse officials to recognize this and change their tune before it is too late for the future of this bank as well as for a large part of its workforce. However, the restructuring plan announced at the end of last month does not bode well for all stakeholders. The risk that Swiss taxpayers will again be forced to pay out in order to avoid the bankruptcy of such a systemically important financial institution can no longer be ruled out.