One of the world’s biggest banks is on the brink of collapse

by silvertomars

Credit Suisse CDS spread… balance sheet with assets of 727bn financed with only 42bn tangible equity at end q2… Mcap is a tiny 10bn… CFO today said “Credit Suisse is at a critical moment”… counterparty risks are increasing…

One of the world’s biggest banks insists it is in a “strong” financial position, amid fears of a looming Lehman Brothers moment that could spark a major crisis.

There are a number of banks with severely impaired assets… trading at 70-80% discount to its book value implying huge losses to come from their loan books and/or derivative exposures… a bank in good shape should trade at book value plus a reasonable projected return on that equity…

With Credit Suisse possibly on the brink, the Office of Financial Research from this week: When choosing counterparties, banks tend to pick riskier ones and do not hedge such exposures. These exposures are correlated with systemic risk measures despite greater regulatory oversight after the crisis.

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ABC Australia is reporting that a major investment bank (likely Credit Suisse) is on the brink, citing ‘a credible source’. The CDS’s of the bank have been trading as if a Lehman Moment was about to hit.

‘Big Short’ Burry Warns That a Repeat of the 2008 Crisis Is in Sight. The legendary financier reiterates his warnings of a market collapse on the way.



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