Swiss bank Credit Suisse loses sustainability - insider rumors

The cryptocurrency portion of Twitter has been pushing the news of the possible bankruptcy of a Swiss bank for the past few days. This event could hurt crypto, as risky leverage positions are cut first.

The bankruptcy of such financial institutions can also negatively impact the cryptocurrency market because when banks liquidate loss-making leverage positions, they first of all high-risk cut assets, including crypto.

Alex Good on Twitter parsed the future financial results and compared the current situation at Credit Suisse to the Lehman Brothers bankruptcy:

Bonds show a yield of only 6.4%, which is not much, although it is a barely noticeable marker of possible bankruptcy.

The bank has several sources of influence on future finances: 

- wealthy clients' wealth management fees;

- losses of the investment bank that lost substantially during the bankruptcy of Bill Hwang of Archegos;

- penalties for failures from Point B;

- the loss-making All Funds fund;

Also on the horizon is the problem of a $600M loss from Citrix debt retention. 10 The litigation concerns Credit Suisse Bank's corporate culture. An ex-employee managed to make a $1.27B loss to a client and successfully concealed it.

Such problems with Swiss banks can't be called black swans for crypto. But some decline is possible. So it may well be that there will soon be an opportunity to buy tokens at a drawdown. But should you do it? The choice is yours alone.

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