Will drama in the banking world continue?

In the wake of the SVB scandal, Credit Suisse, one of the largest and most renowned financial institutions is currently facing a significant challenge that has left many investors and industry experts questioning its future. The bank has been rocked by a series of high-profile scandals, including the collapse of Greensill Capital and losses sustained by its prime brokerage unit in the wake of the Archegos Capital Management debacle. As a result, they’ve been forced to undertake a major restructuring effort, with significant personnel changes and a renewed focus on risk management.

Lots of questions remain about whether the bank will be able to weather this storm and regain the trust of its clients and the broader financial community. What steps will Credit Suisse need to take to restore confidence and ensure its long-term viability?

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Great point. I expect they will need to offload impaired assets and restructure activities further, but in any case I was surprised by the scale of today’s bailout - £50bn is a huge amount from the Swiss National Bank - it has become nationalised to all intents and purposes. This has calmed the markets today but we’re in choppy waters and certainly reminiscent of 2008.

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