There have been all sorts of rumors and chatter on the Interwebs about Credit Suisse and Deutsche Bank having some major financial troubles. Many are saying that they are both on the brink of a collapse.
I’ve reposted some of what is being said below.
Credit Suisse, $CS, executives spent the weekend reassuring large clients, counterparties and investors about its liquidity and capital position, the Financial Times reported.
— unusual_whales (@unusual_whales) October 2, 2022
OOPS! Credit Suisse CEO seeks to calm as default swaps near 2009 level. Koerner touts ‘strong capital’ after shares touch new low. The cost of insuring bank’s bonds against default climbed about 15% last week. Markets price default probability at 20%. https://t.co/AMzLjRTYiJ pic.twitter.com/TG3s6gacl5
— Holger Zschaepitz (@Schuldensuehner) October 2, 2022
#CreditSuisse isn’t the only bank to be concerned about. Multiple banks showing similar reports. Dominoes. It’s going to be an interesting week.
— Steven Cooper (@iamstevencooper) October 2, 2022
Guys!
Credit Suisse🇨🇭one of the largest banks in the world is in deep trouble and is currently fighting for its survival.
This could be the Lehman Brothers Crisis of 2022.
Stay Safe.
— Kashif Raza (@simplykashif) October 2, 2022
$600 Billion: What Lehman Brothers held in assets when they crashed and took the economy with them.
$2800 Billion: What Credit Suisse and Deutsche Bank control in AUM. 4.6x more.
Credit Suisse is at a 'Critical Moment' now, says the CEO.
What lies in store for the world?🧵 pic.twitter.com/VIaMU7dSLX
— Graham Stephan (@GrahamStephan) October 2, 2022
Credit Suisse executives spent the weekend calling investors and clients in a bid to reassure them about bank’s financial strengthhttps://t.co/NjnMJdxLk0
— Owen Walker (@OwenWalker0) October 2, 2022
Credit Suisse is probably going bankrupt … $CS
The collapse in Credit Suisse's share price is of great concern. From $14.90 in Feb 2021, to $3.90 currently.
And with P/B=0.22, markets are saying it's insolvent and probably bust.
2008 moment soon ?
Systemic risk bank. pic.twitter.com/tbYgdGYOMY— Wall Street Silver (@WallStreetSilv) October 1, 2022
Deutsche Bank and Credit Suisse are tanking more right now than the financial crisis of 2009. There are so many market indicators that we are heading towards a major financial crisis. $DB $CB pic.twitter.com/AfkCX3yr9V
— James Melville (@JamesMelville) October 1, 2022
The European financial system is now showing worse downwards trends than the financial crisis 2008/2009. Just look at the share price decline of Credit Suisse. Tomorrow’s markets could be carnage. pic.twitter.com/5Stmod9OsA
— James Melville (@JamesMelville) October 2, 2022
*A LARGE INVESTOR THAT DEALS WITH CREDIT SUISSE SAYS THE INVESTMENT BANK IS A DISASTER, CDS TRADING LIKE A 'LEHMAN MOMENT' ABOUT TO HIT – FBN#CreditSuisse 🇨🇭🇨🇭 pic.twitter.com/UiG0FzRucA
— Investing.com (@Investingcom) October 2, 2022
WARNING FOR FINANCIAL MARKETS:
Credit Suisse and Deutsche Bank have assets under management of $2800 billion dollars.
Lehman Brothers only had $600 billion and it causes 2008 world financial crisis.
CS & DB are in serious trouble. Next week can spell disaster.
BEWARE.
— Mir Mohammad Alikhan (@MirMAKOfficial) October 2, 2022
The stocks of both banks have suffered an absolute rout so far. In the past year alone, their stocks have fallen by more than 40%!
Deutche Bank 🇩🇪 : $12.30 -> $7.40
Credit Suisse 🇨🇭 : $9.83 -> $3.92 pic.twitter.com/HXv0lpTtYw— Graham Stephan (@GrahamStephan) October 2, 2022
I honestly have no idea if these banks are going to collapse soon. In fact, this is the first I’ve heard about this. There’s so much insanity happening in the world today that there is only so much one person can absorb and report on.
Obviously, Europe’s economy is in extremely bad shape. So it would not shock me at all if these major financial institutions are in some trouble. There’s certainly a chance that this is the case as there are lots of smart people who have been following this closely. These smart people believe that they are indeed at risk of failing. It is also worth noting that the economic situation now is objectively much worse than what it was in 2008 when Lehman Brothers collapsed. So based on all of this it is definitely not far fetched to think that they could collapse.
We’ll just have to see what happens in the markets tomorrow. Europe’s economy seems to be doomed either way. Things are getting really bad over there and just the fact that we are talking about these two banks potentially failing is indicative of how bad it is.
