Credit Suisse depositors are draining billions from accounts ahead of UBS takeover
WRAL TechWireApr 24, 2023
Credit Suisse said Monday it lost 61B Swiss francs (US$68B) in assets during the first quarter of this year, with customer deposits also declining by 67B Swiss francs during the same period.
The bank's wealth management division saw its assets under management drop to 502.5B Swiss francs, down from 707B Swiss francs reported for the same time a year prior. The collapses of Signature Bank and Silicon Valley Bank also played a role as investors began making panic withdrawals.
As shown by its rapid-fire asset sales, Credit Suisse is finally dying out and is in need of a stronger business to take over. While UBS can take on this role, the next few years of integrating the two banks need to be taken with caution. UBS needs to rid the company of Credit Suisse's outdated risky business tactics and prioritize wise banking management.
With a bank such as Credit Suisse to be bailed out in a manner horribly reminiscent of 2008, it's time for a radical rethinking of central bank policy. Such crises are the product of the central banks' policies and failure to supervise. Bankers cannot continue to attempt to serve both society and themselves — they must make the right decision or these poorly regulated markets are at risk of falling off a cliff.
There's a 50% chance that the next great financial crisis in the US will occur by February 2028, according to the Metaculus prediction community.