Hi Investors
Do you know what a bankrun is ?
People hurry to the bank to withdraw their money because they think the bank is going bankrupt and as a result the bank is going bankrupt or comes into more trouble at least.
Similar events are happening with Credit Suisse a bank known for taking high risks in their investment bank which resulted to tens of billions of losses in 2022 alone. Only a few events caused this. We call that concentration of risk.
Now Credit Suisse books anther billin loss and reports that 6% of client assets were taken away which is 86 billion CHF.
I think these withdrawals also include Russian oligarchs moving their stolen money elsewhere because the Swiss Government and banks refused to seize these assets of crooked Russian bilionaires. Russia is a country now called a Terrorist State in the EU. (CH is not part of EU).
Well the lesson here is to know your client and do not put too many apples in one basket how temting it may look. There was a time when Swiss banks knew this but their greed has taken over.
They accept everyone as client as moeny does not stink and they too too much risk wanting to score.
A kind of Lehman deja vue. Let's see if shareholder will come up with another few billions in new stock.
Goldrooster
