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VisualMod t1_iuk23fb wrote

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>TL;DR: Why is UBS such a big deal and why do people think its fall will affect markets?

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VisualMod t1_iuk24dl wrote

>The Swiss National Bank is important because it is the central bank of Switzerland and it plays a very important role in the global financial system. The SNB is a member of the European System of Central Banks (ESCB) which sets monetary policy for the Eurozone.

The SNB also has close ties to other major central banks around the world, such as the US Federal Reserve and Japanese Central Bank. These relationships are important because they help ensure stability in global markets. For example, if there was a crisis in Europe, the SNB could provide liquidity to banks in Switzerland that might be affected by this crisis. This would help prevent a domino effect where one bank's failure leads to others failures across borders.

TheSNB also holds large reserves of foreign currencies, including Euros and US dollars. These reserves can be used to stabilize markets if there are sudden changes in demand or supply of these currencies

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Herpalism123 t1_iuk2z72 wrote

The thought of a "big ancient Swiss bank" going under and taking the rest of the world with it is just too juicy to give up, even if the facts don't back it up. Nothing is going to happen to CS and if it did, our government will bail them out anyway, just as they did with UBS. That doesn't mean that the stock will magically recover though, this dinosaur's value is where it belongs.

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tbfranca1 t1_iuk34ao wrote

Go study the LTCM case (1998). It’s a domino effect and it’s impossible to predict all ramifications and consequences.

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RMN1999_V2 t1_iuk497o wrote

Mostly a belief that the Swiss government would not let them go under

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t4ct1c4l_j0k3r t1_iuk4jhi wrote

Big ancient bank with a who's who of clientele going way back

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NOT_MartinShkreli t1_iuk6qhb wrote

It’s Lehman bros all over again.

Just wait 3 months. They’ll be insolvent

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OddFellow1066 t1_iuk9il1 wrote

A google (or other search engine) search which contains "Credit Suisse" and "Archegos" in the search terms will tell you a LOT about the situation.

0

canihazDD t1_iukacio wrote

Considering Archegos basically kept using the same assets as collateral over and over again, it's really possible that CS absorbed some monumentally garbage bags. So large that it would create a black hole in asset liquidation to absolve their debts.

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