Over the course of the last few days, three large banks in the US have now been forced to close down: Silvergate, Signature and Silicon Valley Bank have all been completely shut down.
Bank runs caused by suspected insolvencies following aggressive rate hikes at the Federal Reserve have meant that the banks are functionally insolvent, and this has left the US in a situation where they once more have to bail out large banks.
Will Swiss banks come to the rescue?
Many analysts have been desperately searching for a buyer of last resort, and some have been hoping that Swiss bankers may be those who come to the rescue.
Over the generations, Swiss banks have established themselves as some of the most trusted in the space, and although not nearly as secretive as they once were, they remain a bastion of stability in the financial sector alongside the Swiss Franc.
Nevertheless, it seems completely implausible that Swiss banks are likely to come to the rescue any time soon, given the scale of these implosions in the US, the fact that the Federal Reserve has already agreed to bail them out, and the problems that Switzerland has in its own banking sector.
Credit Suisse appears to also be insolvent
Swiss regulators, having watched the debacle unfolding in the US, are growing concerned about the strength of their own banking sector.
"Crypto is risky"
Meanwhile Credit Suisse, the probably most trusted bank in the world with 166 years of solid track record, is down -96.5% from the top.
Everything is risky folks. You need to take action if you want to protect your investment. pic.twitter.com/UPhxJAgpGl
— CTO Larsson (@ctoLarsson) March 3, 2023
In particular, there are huge concerns that Credit Suisse, one of the largest banks in the world, could also be insolvent. These fears have abounded for some time now, and the problems in the US have caused these concerns to exacerbate further.
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