Summary of EL FIN DE CREDIT SUISSE - CRISIS BANCARIA 2023

00:00:00 - 00:15:00

The video "EL FIN DE CREDIT SUISSE - CRISIS BANCARIA 2023" discusses the potential global financial crisis that could result from Credit Suisse running out of money. Credit Suisse's troubled history with several legal issues and scandals, delays in publishing their annual report, and withdrawals by customers caused the market to lose confidence in the bank. Credit Suisse may face further losses due to its involvement with credit default swaps, which work as a form of insurance for investors. However, the Swiss government has stated that it can request up to $53.7 billion from the Swiss central bank to avoid Credit Suisse's bankruptcy. The potential consequences of Credit Suisse and other banks losing money are discussed, including clients losing their money, fewer loans being available, and credit becoming more expensive and less available. Governments are trying their best to sustain the banking system to prevent a collapse, as the collapse of a large bank like Credit Suisse would result in a worldwide crisis worse than that of 2008.

• 00:00:00 In this section, it is discussed how Credit Suisse, a European bank, could potentially run out of money, which would cause a global financial crisis. As one of the largest banks in the world with a presence in 50 countries and $750 billion in assets, Credit Suisse has the potential to cause a chain reaction that would lead to the downfall of all banks. Credit Suisse's interconnectedness with other banks could lead to the same effect that caused the collapse of Silicon Valley Bank and Signature Bank in the US. Adding to its already troubled history, Credit Suisse has faced multiple scandals and legal issues, ranging from espionage and a fishing bond scandal to being found guilty of money laundering.
• 00:05:00 In this section, the transcript details the financial troubles Credit Suisse faced prior to the 2023 banking crisis, including delays to the publication of their annual report, customer account withdrawals, and large losses in the fourth quarter of 2022. The bank's main shareholder, the Banco Nacional Saudita, refused to increase their investment and the quality of Credit Suisse's reports came into question. Additionally, Credit Suisse may face significant further losses due to their involvement with credit default swaps, also known as CDS, which work as a form of insurance for investors. These financial issues caused the market to lose confidence in the bank and its stocks, which lost more than 50% of their value in a matter of days.
• 00:10:00 In this section, it is explained that Credit Suisse finds itself in a crisis where it may be obligated to pay clients billions of dollars for Credit Default Swaps (CDS) in the case that companies and countries are unable to pay their debts. Although this situation could worsen the bank's economic collapse, the Swiss government has stated that it can request up to $53.7 billion from the government-owned Swiss central bank to avoid Credit Suisse's bankruptcy. Additionally, the U.S. government has pledged a $2 trillion reserve for struggling banks, which calmed investors' fears, although still indicating a 98% possibility of a global recession. While government rescues can help banks, the risk of a crisis is now higher than ever before, and people and businesses are reducing their risks, making it harder for banks to profit from investments.
• 00:15:00 In this section, the potential consequences of Credit Suisse and other banks losing money are discussed. One consequence is that clients could lose some or all of their money if the government does not step in to rescue the bank, as in the case of Silicon Valley Bank. Another consequence is that there would be fewer loans available, which could negatively impact both individuals and businesses. The Secretary of the Treasury of the United States, Janet Yellen, has expressed concern that stressed banks may be reluctant to lend money, which would make credit more expensive and less available to people and businesses. As the banking system continues to weaken, governments are doing everything possible to sustain it to prevent a collapse, as the collapse of a large bank such as Credit Suisse would cause a worldwide crisis worse than that of 2008.