Market Strategist Greg Foss has cautioned that Credit Suisse could be the next bank to collapse due to a run on the bank. Foss is executive director at Validus Power Corp and previously had the role of senior portfolio manager with a focus on credit strategies at Fiera Quantum. He commented on the ongoing situation at Credit Suisse –
“Credit Suisse is a systemically important financial institution and there’s a run on the bank,” Foss began, elaborating:
“The wealth division is losing assets in magnificent fashion and that’s a very key profit driver for the bank, and it’s essentially a run on the bank”
Expressing concern over the significant derivatives exposure held by banks like Credit Suisse, which could lead to a collapse similar to Lehman Brothers in 2008. It’s essential to note that Foss isn’t the first analyst to raise concerns about the stability of Credit Suisse, which has faced numerous scandals and legal challenges in recent years.
On Wednesday, shares of Credit Suisse plunged 25% after its largest investor, Saudi National Bank, said that it could not provide any more financial assistance to the Swiss bank. The share price did later recover by 10% in after hours trading after the National Swiss Bank said they would provide financial help to Credit Suisse if needed. The story continues…..