C will become G
CS => GS
1 Like
Meaning it will be bought by Goldman Sachs? Or that it will be the next Game Stop (i.e. meme stock?)
1 Like
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:
https://money.cnn.com/quote/shareholders/shareholders.html?symb=CS&subView=institutional
1 Like
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?
2 Likes
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.
5 Likes
Anyone thinking about buying up some CS shares?
2 Likes
Haven’t been to a casino in a long time and no plans to do so, but it might be a fun bet 
1 Like
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.
4 Likes
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?
1 Like
Yes, they seem to have a pretty bad track record, also ethically speaking.
1 Like
Good morning Mustachians!
I have a question regarding the relationship between VIAC and CS.
Are 2/3 pillars affected in any ways by what is going on right now with CS?
Is the money we put in VIAC vested benefits handeled in some way by CS, or not at all?
Thank you!
Follow-up question: when comparing American Depository Shares vs. regular U.S.-listed shares, are there any additional tax implications to consider?
The shares of Credit Suisse Group are listed on the Swiss Exchange (SIX) and in the form of American Depositary Shares (ADS) on the New York Stock Exchange (NYSE).
It appears that there is a different treatment based on whether your 3rd pillar is in cash or invested in securities.
According to VIAC’s own KB article, the cash portion of your pension is held directly by the Vested Benefits Foundation of the WIR Bank which does not rely on Credit Suisse. As a bank it has a full FINMA banking license and can (edit) have preferential credit balance (understand, bankruptcy of the Foundation of WIR Bank). In that sense, solvency issues with Credit Suisse would not affect the cash assets held by it as they are fully independent from a legal perspective, at least not affect them directly by virtue of corporate law (what we can hardly assess though is to what extent Credit Suisse tanking would indirectly affect VIAC in that regard, which we can assume would have some impact on their operations to some extent).
Regarding the securities part of your VIAC 3rd pillar, it appears that it is held by Credit Suisse which acts as a custodian bank in the relationship. While 3rd pillar securities do not enjoy the protection granted to deposits (the famous CHF 100k), they do not not fall in the bankruptcy assets due to having a special status should Credit Suisse default. There is some useful guidance on that topic on the Esisuisse website.
2 Likes
thank you so much! that seems quite aligned with what I had understood for the 3rd. I will read more in detail all the articles you suggest.
However, I will have my 2nd pillar and not the 3rd with VIAC, does the same apply for it?
There is no deposit insurance for cash in 3a. Up to CHF 100k per person is privileged in case of bankruptcy but there is no insurance. This is explained in the esisuisse FAQ you’ve linked to.
An additional aspect to consider is that most funds are not just held but also managed by Credit Suisse (CSIF). In the worst case, these funds would be liquidated, which would be inconvenient (not tradable, out of the market for a bit) even if there is no direct loss. However, I think that’s very unlikely. I’d expect another company to buy out CSIF if Credit Suisse faced bankruptcy.
2 Likes
As per the linked esisuisse FAQ, the same applies to pillar 2 (vested benefits) and pillar 3a.
Thanks, I did indeed read too fast. The 100k have preferential treatment but are indeed not covered by the insurance. Apologies for the gross mistake. It’s edited.
What are other Mustachian doing in relation to CS and VIAC 3a?
1 Like
Switching to Swisscanto funds at finpension 