Banking on More Chaos
The collapse of Credit Suisse shows just how vulnerable the banking system is to the current financial shocks. It won't be the last to fall.
One of the world's best know banking institutions is no more.
After 167 years of operations Credit Suisse (CS) has been absorbed by UBS after it collapsed. The failure comes despite CS receiving an $80 billion bailout from the Swiss National Bank.
Even after this massive survival package , CS was sold for just $3 billion in a share swap deal.
Over $18 billion in bonds are being immediately wiped out, leaving investors with a 100 per cent loss. This plays into our thesis that bonds will deliver the greatest global wealth destruction in history.
But CS is just the latest domino to fall in a global banking crisis.
There are likely many more to come.