Carolinian
TUG Member
Credit Suisse, one of Europe's largest banks, has been in difficulty for some months, as a result of some reckless behavior, but with the current banking crisis, its stock has dropped precipitiously from its already low level and trading has been halted. A bank failure of the size of Credit Suisse would have worldwide financial impact. The Saudis have a lot of money in this bank but say they are not going to put any more in.
www.dailymail.co.uk
Another bank that has been a zombie bank for years, whose stock has been in the toilet is Germany's largest bank, Deutsche Bank. When it first got on the ropes, the German government said they would not bail it out, and realistically probably does not have the money to do so if they wanted to anyway. So far, there does not seem to be any further run on Deutsche Bank, but its failure would cause even more international problems than a failure of Credit Suisse because of the extent to which Deutsche Bank dominates the Credit Default Swap market, which would be thrown into absolute chaos if it failed. We need to keep our fingers crossed on this one, even more so than Credit Suisse.
One remembers that the failure of the Austrian bank Credit Instalt was what set off the Great Depression. Each of these two European banks is far more significant.
(Some of us do have differing economic philosophies, but lets keep that OUT of the discussion, as it may be deemed political. Regardless of economic philosophy, these are two banks that need to be watched closely as what hapens with them could easily impact all of us in a big way)
Big Four US banks drop in pre-market wiping out gains
Wall Street's main stock index futures dropped on Wednesday, as fresh worries related to Credit Suisse battered investor sentiment and sent shares of the Big Four major US banks lower.
Another bank that has been a zombie bank for years, whose stock has been in the toilet is Germany's largest bank, Deutsche Bank. When it first got on the ropes, the German government said they would not bail it out, and realistically probably does not have the money to do so if they wanted to anyway. So far, there does not seem to be any further run on Deutsche Bank, but its failure would cause even more international problems than a failure of Credit Suisse because of the extent to which Deutsche Bank dominates the Credit Default Swap market, which would be thrown into absolute chaos if it failed. We need to keep our fingers crossed on this one, even more so than Credit Suisse.
One remembers that the failure of the Austrian bank Credit Instalt was what set off the Great Depression. Each of these two European banks is far more significant.
(Some of us do have differing economic philosophies, but lets keep that OUT of the discussion, as it may be deemed political. Regardless of economic philosophy, these are two banks that need to be watched closely as what hapens with them could easily impact all of us in a big way)
