Swiss National Bank Ready To Step In To Aid Beleaguered Credit Suisse

Join Our Telegram channel to stay up to date on breaking news coverage

The global economy has taken a major hit in the past couple of months. Stocks, cryptocurrencies and several other asset classes have lost value considerably and continue to plunge in terms of price. While there were rumours of a recovery and slight upwards movement since the start of 2023, the recent collapse of major banks put a halt to these- Credit Suisse being the latest on the list.

The current state of cryptocurrencies, especially top altcoins have already been dire, but the recent Credit Suisse debacle is likely to put even more pressure on the bulls. So what exactly is the Credit Suisse debacle all about? Who does it affect and how is the cryptocurrency market going to react to it?

Let us try to find out by first taking a look at the how-about of Credit Suisse

Credit Suisse- An overview

Credit Suisse is a leading Swiss multinational investment bank and financial services company. Its main office is in Zurich, Switzerland, where it was established in 1856. In addition to offering investment banking, private banking, and asset management services to its clients, Credit Suisse also offers a wide range of other financial goods and services. The bank has operations in more than 50 nations and is well-established in Asia Pacific, Europe, and the Americas.

Thomas Gottstein, the CEO who assumed the position in February 2020, is currently in charge of the bank. In his more than 20 years with Credit Suisse, Gottstein has held a number of executive positions in the bank’s Wealth Management and Investment Banking departments. He took over for Tidjane Thiam, who resigned following the revelation of a spying scandal involving Credit Suisse executives.

António Horta-Osorio, who started working for Credit Suisse in April 2021, is the chairman of the board of directors. In his former role as CEO of the Lloyds Banking Group, Horta-Osorio oversaw the bank’s recovery from a financial crisis it faced at the time.

Credit Suisse has encountered a variety of difficulties and issues recently. The failure of Archegos Capital Management, a family office that had acquired sizeable stakes in a variety of companies, resulted in the bank suffering large losses in 2021. In connection with its participation in the 1MDB scandal, a prominent corruption case involving a Malaysian state fund, the bank has also been subject to regulatory sanctions.

Swiss National Bank Ready to Help

On March 15, the Swiss National Bank (SNB) and the Swiss Financial Market Supervisory Authority issued a joint statement regarding the stability of the Swiss banking system and Credit Suisse. The statement was reportedly created due to a request from Credit Suisse.

According to the regulators, the issues faced by “certain banks in the USA” do not pose any risks to the Swiss financial system. The regulators were implying the recent fall of the Silicon Valley bank in their statements, whose collapse also led to a major financial meltdown recently. They stated that Credit Suisse meets all of the requirements for capital and liquidity and that if needed, the SNB would provide liquidity to the bank.

While the cry for help was addressed by SNB, its statement solidified the speculation that Credit Suisse had been negatively affected on the financial front. All this negative press put major pressure on the institution’s stock prices, which fell to levels last seen during the 2008 financial crisis.

Some Parties May Not be Willing to Help Out

"The answer is absolutely not"

Credit Suisse's largest shareholder will not provide more investment to the troubled lender, Saudi National Bank Chairman Ammar Al Khudairy tells @BloombergTV https://t.co/WRUYNUDOqh pic.twitter.com/VrzPfDwLUo

— Bloomberg (@business) March 15, 2023

While Credit Suisse could be potentially relieved to an extent by the SMB’s statement, it is now evident that its largest stakeholder Saudi National Bank, may not be inclined to help them. The bank’s chairman Ammar Al Khudairy said that they were “absolutely not” going to provide any kind of support for Credit Suisse.

Conclusion- How will the Cryptocurrency Market React to This?

Fortunately for the crypto investors, there haven’t been any major changes in the price of unexpected price dumps since the news was released. Surely, the frontrunner crypto BTC took a hard beating as the string of negative press was out, when the prices went from being in the $25,000 range to the $19,700 level.

However, a strong recovery has been seen, where the crypto once again pumped back to the $25,000 level, providing much hope to investors on a global level.

Newest Meme Coin ICO - Wall Street Pepe

Rating