If they don’t catch the wave, here we try to explain what is happening with Credit Suisse and how is it related to Silicon Valley Bank. Yes, the Swiss bank is going through a crisis and all because of the fall of the United States.
What about Credit Suisse?
According to information from BBCthe actions of Swiss credit are in serious trouble as they have fallen to their all-time low, as investors continue to fear the collapse of Silicon Valley Bank.
Yes, according to the British media, Credit Suisse shares fell 30% after disclosure of a “weakness” in its accounting controls. For this reason, investors are very concerned about how the Swiss bank will handle US bank failures.
This fear was obviously reflected in the stock markets, as the main indexes fell suddenly.
The Swiss bank before its fall
Well, what was I going to say: Credit Suisse assured that its financial position was not a concern and even its CEO commented that its cash reserves were still “very very solid”… Look at the face with which Conan looks at you (greetings, I’ll summarize it for you just like that).
But it was too late; the damage was done and bank stocks around the world were affected.
What happened after the fall?
Trying not to let things get out of control with the fall of Swiss creditaccording to the BBC, the prime ministers of Spain and France spoke trying to reassure investors, as the Stoxx Europe stock index also fell 7%.
And it was not the only one, since the main European indices still fell: London’s FTSE 100 fell nearly 3.9%, France’s CAC 40 fell 3.5%, Germany’s DAX fell more than 3%, and Spain’s IBEX 35 fell 4%.
Not to mention the main stock markets in the United States, which also went in free fall like a roller coastersince the actions of banks were affected, regardless of whether they were large or small.
Why did all this happen?
Some will know it, some will not, but all these problems, the falls, the insecurities of the investors they started in el gabacho last week, with the free fall of Silicon Valley Bankwhich is the 16th largest bank in the United States.
And it is that the bank specialized in giving loans to technology companies was closed by gringo regulators last Friday in what meant the biggest bankruptcy of a bank in the United States since 2008; so much so that HSBC bought the British division of Silicon Valley Bank for one pound sterling (22 or 23 Mexican pesos, depending on when you read this).
And like dominoes Signature Bank of New York couldn’t get a good grip on the rail of stability and went bankrupt. But don’t worry, US regulators assured, because they guaranteed all the deposits of both banks.
For now, the fears that other banks will suffer falls and bankruptcy are still in the air, so bank stock trading has been a seesaw these days.
Anyway… To finish it is necessary to mention that Credit Suisse, a bank founded in 1856, had already been dragging several problems and scandalssuch as money laundering charges
