Yes it was a Swiss branch, otherwise I wouldn’t invest. I think I’ve got the principal like within 1 month and, to my big surprise, even got the interest after 6 months or so.
So dear Members, now that CS is slowly going bankrupt, who’s afraid to keep their finpension money with them?
What would happen if the bank did go insolvent?
Isn’t there also the distinction of CS (Schweiz) AG and CS (International) AG - of which only the latter might be heading under?
Are the investment vehicles with the former or the latter?
Edit: With the former (from factsheet)
“Credit Suisse Asset Management (Schweiz)
they are with CSAM indeed, but Asset Management, even having a separate legal entity, still belongs to the CS Group.
It’s very easy to split this entity from the group and make it an independent company e.g. “Second Boston” or sell it to another bank. That was the whole point of reorganizing banks after 2008. At least in this point regulators did their homework before the next crisis.
First, there’s aleeady a thread about the effects of CS going bust here → https://forum.mustachianpost.com/t/what-would-happen-if-credit-suisse-goes-bust
Second, as I already replied there, CSIF funds will probably not really be affected by CS going bankrupt as these funds are in a separate special AuM bucket and also the securities in the funds are not CS (a small % is), but of other companies, which are not directly affected by CS going bankrupt, not more than any other funds. There may be some administrative issues in the beginning, but nothing dangerous.
I’ve seen the price of CS during the last year and it lost more than 50% of its value. I think it will not fail but definitely will change ownership. Not that it’s “suisse” now…but I suppose it will be less “suisse” and more “switzerland”. I think that the “C” is slowly growing an appendice upwards and leftwards…
I think this is probably a sophisticated joke but i don’t get it
By the way the story of Kaupþing can give an idea how it might work if a system relevant bank goes bankrupt. Domestic business is taken over by the government and reorganized, all foreign assets and liabilities were dumped to decay in a financial equivalent of nuclear waste storage facility.
VIAC uses Credit Suisse to hold the securities in their solutions. They use CS funds for some of them but not all.
Finpension uses Credit Suisse (Schweiz) AG as their depository bank for both cash and securities.
3a cash up to 100K is privileged in case of bankruptcy, that means it gets a high spot in the order of distribution and should, but may not in extreme cases, be retrieved.
Securities are not considered as assets of the bank holding them for the Vorsorgestiftung and should not be lost in a bankruptcy but, instead, get deposited in another bank/brokerage by the Vorsorgestiftung should CS go bankrupt.
This assumes the assets actually exist and that CS did not produce false documents that haven’t been caught by audits/regulatory authorities. Given CS history, I wouldn’t put fraud above them. I find it hard to do business with an entity I don’t trust, relying only on the law and regulatory authorities to protect me, so I’m moving my VIAC assets to frankly.
C will become G
CS => GS
Meaning it will be bought by Goldman Sachs? Or that it will be the next Game Stop (i.e. meme stock?)
Isn’t gamestop GME?
Goldman Sachs, which is already one of the biggest shareholder… if I can find that page. On the page I’ve found now it seems the second biggest is Qatar.
One of the two is hiding/misleading:
I remember that one. I had an account with their Swiss subsidiary.
I can confirm that deposit insurance in Switzerland does work At least for smaller banks.
CS seems all over the financial news these days. Since I was about to get a mortgage with them a few years back, I wonder: what happens to the mortgages if CS goes bankrupt?
Nothing. Nowadays mortgage conditions include the pre-approval to be sold to a third party (was a required measure for the financial stability of the big banks). So before insolvency, they would sell it and you get a letter that you now have to pay interest to someone else.
If they would go bankrupt without selling, still nothing changes. You would continue to pay to the bankrupt legal entity, managed by the insolvency manager.
In short: No need to worry or care who you own money too, they will have to adhere to agreed terms. Only downside is that refinancing or prolongation wont be possible with them anymore.
Anyone thinking about buying up some CS shares?
Haven’t been to a casino in a long time and no plans to do so, but it might be a fun bet
I haven’t looked but if I absolutely had to, I’d rather make that bet on bonds, they’re likely to be sold at a discount and should be better protected in case of bankruptcy / state intervention.
That’s not a bet I would touch with a 10-foot pole, though. Except maybe for their traditional banking operations, CS are pretty bad at what they do. The stock has been going down since 2007. To paraphrase Warren Buffet: I’d rather buy a great company at a fair price than buy a terrible company at a depressed price.
I was reflecting that, even if I like pretty much the offer from CS (both price wise and technical/UX) , I think it is the time to start differentiating a bit. Key criteria is then going to be, in too of the price, the exposure to a possible or CS.
Any thought in these regards? Which bank is more exposed?
I have the feeling that may be better to go for cantonal banks and/or small banks (Migros/clear), but, indeed, that’s only a feeling. Anyone having facts?