Thomas Jordan of the Swiss National Bank (SNB) not only looks at his own institution when he reflects on the fall of Credit Suisse, he also points the finger at the banking crisis in the United States. This would have led to a loss of confidence in the Swiss banking sector.
Why is this important?
After the announcement that the main investor, the Saudi National Bank, would no longer provide credit to Credit Suisse, the bank’s share price fell rapidly. In a few days, the stock market value of the bank melted. There were fears regarding its liquidity and it was forced to be acquired by its competitor UBS.In the news : Switzerland says Credit Suisse’s bankruptcy is partly due to turmoil in the US banking sector which came at a “very inopportune time”.
Acknowledging that the growing loss of confidence has made it clear that Credit Suisse can no longer exist in its current form, Thomas Jordan of the Swiss National Bank is confident he has found a lasting and stable solution with the acquisition by UBS.
- Jordan, however, throws a spade
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