That’s another problem… The funds to guarantee the 100K€ (or 100CHF in Switzerland) are a bit like the reserve of masks stored in case of a respiratory disease pandemic: ridiculously insufficient. So if there is a real need for that, the state will provide the missing funds (of course not from taxes but from the central banks’ magic hat).
Of course. These laws are there to protect the banks, not their customers (those with a positive balance at the bank, I mean). Worse, they legalize the spoliation of customers to rescue the banks.
It didn’t. UBS was a few days away from going bankrupt. The government, and financially, the SNB rescued it in extremis. In a similar situation, with the “too big to fail” law (introducted later), the people in charge of such a crisis could opt for a bail-in instead of magic money from the SNB.
The SNB did. UBS was rescued with free money (see the 50 Billion bump in base money here) .
It’s not for tomorrow but may be next years 2021, 2022,… or sooner if people stop to trust virtual/debt money and remove all their money from bank for buy other “real” or even “virtual money” value
UBS/CS leverage is high less than some EU banks but still more higher than US banks since 2009.
@Provident yes this time may be not the next
This time is probably a bankruptcy/too high debt crisis which is different.
But may be nothing and all continue like actually with more printed money and more debt without any issue