. Deposit withdrawals of over SFr100 billion
deposits flowed out and the share price collapsed
Swiss National Bank provided Credit Suisse with SFr50 billion as a ‘liquidity backstop’
Bank failures often arise from some miscalculation of risk
this was a bank that has been weakened by a series of scandals over the last two decades
But in recent years, Credit Suisse and its employees have been investigated, fined, made settlements and even been imprisoned for various money laundering, corruption, tax evasion and even corporate espionage scandals.
They have ranged from money laundering for Japanese gangs and Bulgarian drugs traffickers, to kickbacks in Mozambique, tax evasion in the United States, spying on former employees in Switzerland, dealing with African dictators and jobs-for-business deals with Chinese officials in Hong Kong
The scandals made Credit Suisse look increasingly risky. In October 2022, a journalist tweeted that a major investment bank was ‘on the brink’, leading investors to assume that the bank in question was Credit Suisse. Deposit withdrawals of over SFr100 billion and a decline in share price followed
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