Business There are some serious rumours doing the rounds about a major bank failure - Deutsche Bank and Credit Suisse are tanking more right now than the financial crisis of 2009.

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ABC Australia is reporting that a major investment bank is on the brink, citing 'a credible source'.

Most are pointing towards Credit Suisse. It was caught out in the Archegos disaster and since then (Feb 2021) its share price has spiralled to $3.90 from $14.90. Moreover, the credit default swaps are at distressed levels.

A memo from the CEO to staff circulated late on Friday:

"I know it's not easy to remain focused amid the many stories you read in the media – in particular, given the many factually inaccurate statements being made. That said, I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," he wrote.

Today, Fox Business' Charlie Gasparino reported that:

"CEO Ulrich Koerner has been meeting w major institutional investors worried the firm is on shaky financial footing and assuring them the bank has strong capital, liquidity etc. One large investor tells me "the bank and wealth management platform are very valuable, but the investment bank is a disaster." The CDS's of the bank have been trading as if a Lehman Moment was about to hit."
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This could lead to an ugly open tomorrow and something far worse if it proves to be true.

The bank will have to effective refute this in the strongest possible fashion, otherwise they'll have clients pulling money and couter-parties cutting credit lines. Rumours like these can be self-fulfilling.

We've already got an inflation crisis and an energy crisis. How about a banking crisis too?

https://www.forexlive.com/news/ther...e-rounds-about-a-major-bank-failure-20221002/ (Archive)

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https://twitter.com/JamesMelville/status/1576117664132386816 (Archive)

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https://twitter.com/WallStreetSilv/status/1576324595321229312 (Archive)

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https://twitter.com/GrahamStephan/status/1576601663477059585 (Archive)
 
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reptile baht spaniard rid said:
Insisting everything is fine is always what the CEO is saying when the big Dick of FDIC enters the chat.

They’re fucked.
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Bear Stearns was saying the same shit up until the hours before they got the plug pulled on them too lol. Like they may as well have been copied and pasted.
 
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We'll I didn't expect to recreate 2008 again, if we're having do overs can I get my 2008 hair back?

Your Starter for 10 said:
Haha I wonder how much this is going to cost US taxpayers moneyprinters.
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For each $1 printed it costs about 90c to make, Physical currency is something modern governments hate it's a massive drain on slushfunds.

Lord of the Large Pants said:
Sure is a good thing we broke down the legal walls between boring old deposit banking and sexy, exciting investment banking.
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I will never understand how that sort of shit passed and wasnt re-regulated after 2008 just to prevent this sort of crap from happening - if you look at a lot of the "Private Banks" like coots they managed to keep this sort of shit separate even if they have a investment arm to begin with.

Then again there is a reason Banker rhymes with Wanker, and Politician rhymes with Brown Envelope stuffed with readdys.
 
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Lord of the Large Pants said:
Sure is a good thing we broke down the legal walls between boring old deposit banking and sexy, exciting investment banking.
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I especially love how the media in 2020 was like "another 2008 could never happen, we put up so many regulations to prevent it"

Which ignored that there was no way to enforce those regulations and banks just kept on doing the same "investment" shit that got us in the financial crisis after being bailed out, except far more aggressively because now they knew that the governments would never let them fail. Which everyone (who was paying attention) said would happen.
 
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Twinkletard said:
Bush and Obama kicked the can down the road which caused the 2008 banking crisis.

Looks like we've caught up to it!
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Its more accurate to say that Obama (and the FED) lit the can on fire, then threw it in the woods while declaring they had "solved the issue" and everyone just ignored the growing all consuming forest fire until it started inching its way towards their houses.
 
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Don't worry bros, I'm sure the government will bail out the poor downtrodden banks who are in no way the architects of this situation. That worked out so well in 2008, I personally had my life improved a great deal by billions of dollars of public money being handed over to Shalom, Goldberg and Shabbat.
 
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Chilson said:
Which ignored that there was no way to enforce those regulations and banks just kept on doing the same "investment" shit that got us in the financial crisis after being bailed out, except far more aggressively because now they knew that the governments would never let them fail. Which everyone (who was paying attention) said would happen.
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That's the main problem "Enforcement" in the UK before the 80's any bank that did busness in the UK had to have a HQ with the manager in a area called "the Square Mile" at one point in time you had to be able to be directly report to the head of the Bank of England within a 15 minute walk at a moments notice and YOU could be held directly responsible, and that wasnt always a stern talking to, you could be arrested and charged and there was a jail less than 2 miles away for crimes against the state / crown that had penalties you couldnt just game your way out of.

Catler said:
I know nothing about banking, but from personal experience when the CEO feels the need to reach out and say things are okay, they're actually completely on fire.

In the tech industry that’s a sign to abandon ship asap.
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This is exactly what happening, Banking borrowed a lot of tech and inner management culture from Big Tech after the .com bust and the social flop so are using that kind of playbook - I'm not going to power level but I know someone who was in serious finance who handed there notice in last week, and they where seeing this sort of memo months ago to branch and division directors. If it's going company wide there is a fire and it's not one that's going to be put out.

This is the financial equivalent of saying to a indian textile worker - Don't mind the fire we're just drying the cotton as they are legging it down the fire escape.

Twinkletard said:
Looks like we've caught up to it!
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We never stopped kicking that's the problem, markets are to concerned about chasing the dragon of growth rather than slow an steady and have worked very hard over the last 50 years to make people expect new and awsome ways to find ways of getting into debt from cloathing that changes style every 3 months, newer and more addictive technology, latest must have items and a way to make you feel bad for not seeing those new trends dumped directly into your eyeballs you constantly scroll through people living a life as a advertisisment the problem is the moneys ran out nobody really wants or needs the new fancy thing as the last fancy thing works better than they ever need.

People don't want a tripple espresso soy lattle frappe with stevia and artifical nutmeg, they just want a milky coffee that's not bitter, and they can get that with a kettle, instant coffee and a bottle of milk - it doesnt have to be branded and thats what they will go back to even if they put it in a Starbucks cup for appearances.
 
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Someone in the Ukraine thread was whinging that Ukraine is a huge money laundering country.

As if real estate in the US isn't used for money laundering, speculation, weird credit shell games, debt leveraging, quick profit turnaround, investor ripoffs, ChiCom tax evasion, and all kinds of other shit.

This shit didn't even start in 2008. The Savings and Loan crisis in the 80's was similar.


There was also at least one crisis in the 1980s where at least one massive company loaned money to property owners to buy properties that were not worth the amount they loaned them, so the money was not recoverable, and all the while the quarterly reports were telling the shareholders how great everything was. (This folds into the S&L crisis.)

If you own one house which you live in, you are not in the real estate game.
 
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Twinkletard said:
Bush and Obama kicked the can down the road which caused the 2008 banking crisis.

Looks like we've caught up to it!
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Obama was elected as a result of the crisis. This is like blaming Biden for the shitty response to Covid.

Edit: Shit that happened after they were elected, fine. Shit that happened before, lolno.
 
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