Credit Suisse was the most prominent actor in the liquidity shortage in the money markets last week. The financial deficit in the markets brought to mind the nightmare of 2008 financial markets, Lehman Brothers.
Credit Suisse has recently global interest rate trend and scandals within the company and wrong investments It is being dragged into the middle of a financial crisis due to Finance experts worry that as the Swiss banking giant sinks, it could drag an entire financial industry into its wake.
in investment banking in the first half of the year $1.4 billion Announcing losses, the bank recently lost many key players from its management team as a result of cutting bonuses to its top executives. In addition, Suisse’s access to finance became very difficult in the economic arena, where monetary expansion was replaced by contraction policies. The bank’s liquidity shortage manifests itself first. September 28 on At FRA-OIS Spread Rate showed. On September 28, it rapidly exceeded its daily average frequency. FRA-OIS, It was interpreted by experts that a bank was looking for a loan in the money market but could not find it. With the rapid depreciation of Credit Suisse’s shares, it was learned who the bank was.
Although the CEO of the company gives the employees and investors a strong capital base and position Although he says it’s more important than stock values CDS levels not seen since 2009 and bottoming stock prices indicated that the market did not agree with the CEO.
The difficult situation of the banking giant, on the other hand, brought to mind the nightmare of 2008, Lehman Brothers. But as Lehman Brothers filed for bankruptcy 600 billion Credit Suisse’s average when managing a dollar position $1.4 trillion How the management of the asset will affect the financial markets is not yet fully predicted by the experts.
Although the integration between financial markets and financial markets has increased recently, it is expected that the crypto money markets will be positively affected by this situation. Ultimately, Credit Suisse too big to sink (TBTF) Explaining that it is a bank and all kinds of financial support packages to be saved to raise inflation again It is among the rumors that he will be rescued. The rising liquidity is repeating itself as in the pandemic period. influx of cryptocurrencies is among the expectations of the financial sector.
