After the fall of the SVB, the CS hit a systemically important major bank that did not have such problems. Was there a connection?
Maybe there was a connection because there was uncertainty in the market because of the SVB and he reacted more sensitively to negative news. But the CS is a different case. Here we have a bank that has been mismanaged for years. There were mistakes in risk management, compliance mistakes and ultimately also strategic mistakes. They probably stuck to investment banking for a very long time, where they did very risky transactions with sometimes high losses.
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Central banks and governments reacted quickly: CS was forcibly merged with UBS, and the government guaranteed deposits at US banks. Were these reactions correct?
What was really important and what was also learned from the 2008 financial crisis is that it is important to intervene quickly. That’s what you did. The fact that it is necessary can now also be seen in the USA. First Republic Bank is the next regional bank on the brink. You really do everything you can to restore trust: by limiting bets against this bank, for example, to prevent deposits being withdrawn. Ultimately, only politics with its might and power can do that.