/ world today news/ The Credit Suisse bank cannot withstand the outflow of money related to Switzerland joining the anti-Russian sanctions, this opinion was expressed by the economic observer Nataliya Karnova.
The Swiss National Bank said on Sunday that Credit Suisse is in crisis and will be bought by UBS for three billion Swiss francs ($3.2 billion).
„The legend collapsed, they drowned. Credit Suisse, whose history spans nearly 170 years, no longer exists. Everything happened literally at once – we left for the weekend, all the decisions were made during the weekend. Credit Suisse was taken over by another Swiss bank, UBS, which now remains the only major stable foundation of their banking system.
It also assumed all debts and liabilities of Credit Suisse. However, shareholders who held the riskiest securities were left with virtually nothing. They suffered losses,” Kurnova said on Sputnik radio.
According to the economist, the collapse of Credit Suisse is directly related to Switzerland’s rejection of traditional neutrality.
„The idea that Swiss banks guarantee the safety of deposits in any case … is more than a hundred years old, it was solidified during the Second World War. Then the Swiss banks withheld all the money that came to them.
Why did everything change? Switzerland abandoned the traditional policy of neutrality it had adhered to during World War II. Now they have joined the anti-Russian sanctions. The consequences were not long in coming,” said the economist.
She explained that many customers lost confidence in Swiss credit institutions due to the blocking of Russian accounts and started withdrawing their money.
„Those who kept their capital in these banks understood that today is Russian capital, but like nothing tomorrow they could be next, and began to withdraw funds. The Chinese were the first to do this, and there was a lot of Chinese money in Swiss banks. That money began to leave, bank balance sheets began to “weak”, and debts continued to grow.
Because financing, the flow of money is now at a different price, interest rates are rising, money is becoming more expensive, venture capital is leaving and no one is coming to replace it. Accordingly, there are also losses. Credit Suisse also faced this. As a result, the bank did not last,” summed up Karnova.
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**Considering the flight of capital from Swiss banks, particularly from Chinese investors, what are the potential long-term consequences for Switzerland’s historically strong financial sector and its position as a global financial hub?**
## World Today News Interview: The Fall of Credit Suisse
**Host:** Welcome to World Today News. Today, we’re joined by two esteemed guests to discuss the recent collapse of Credit Suisse and its potential implications for the global financial system.
Let’s welcome economist and author [ **Guest 1 Name** ], and [**Guest 2 Name** ], a professor specializing in Swiss financial history. Thank you both for joining us.
**(Both Guests greet the host.)**
**Host:**
The world watched in shock as Credit Suisse, once a stalwart of the Swiss banking system, was swiftly absorbed by UBS. This follows Switzerland’s decision to join international sanctions against Russia. Natalya Karnova, an economic observer quoted in the article, asserts this decision directly contributed to the bank’s downfall.
**[Guest 1 Name], what are your thoughts on this connection between Swiss neutrality, sanctions, and the collapse of Credit Suisse?**
**Host:**
[Guest 1 Name]’s insights paint a picture of eroded trust among depositors. [Guest 2 Name], how has Switzerland’s historical reputation for neutrality traditionally influenced the perception of its banking system, and how might these events impact that image moving forward?
**(Discussion on Swiss neutrality, reputation, and impact on the banking system)
**Host:**
The article highlights the flight of capital from Swiss banks, particularly from Chinese investors. [Guest 1 Name], how significant is this shift in investor confidence, and what potential ramifications could it have on the Swiss economy and beyond?
**(Discussion on capital flight, investor confidence and its ramifications)
**Host:**
The acquisition of Credit Suisse by UBS comes with a hefty price tag, raising questions about the stability of the Swiss financial system as a whole.
**[Guest 2 Name], what is your assessment of the current state of the Swiss banking sector, and do you see any broader systemic risks emerging from this dramatic event?**
**(Discussion on the Swiss banking sector, systemic risks and potential vulnerabilities.)
**Host:**
Looking ahead, there are certainly many lingering questions about the factors leading to Credit Suisse’s collapse and the potential consequences for the global financial landscape.
[**Guest1Name****whatlessonsmightothercountrieslearnfromthiseventparticularlythoserelyingheavilyontheirbankingsector?**[**Guest1Name****whatlessonsmightothercountrieslearnfromthiseventparticularlythoserelyingheavilyontheirbankingsector?**[**Guest1Name****whatlessonsmightothercountrieslearnfromthiseventparticularlythoserelyingheavilyontheirbankingsector?**[**Guest1Name****whatlessonsmightothercountrieslearnfromthiseventparticularlythoserelyingheavilyontheirbankingsector?**
**(Final discussion and concluding remarks)
**Host:**
We thank both our guests for their invaluable insights into this complex and nuanced situation.
**(Host signs off.)**
This structure allows for a deep dive into the key issues surrounding Credit Suisse’s collapse, while fostering a balanced and informative dialog between two experts with diverse perspectives. Remember to encourage the guests to use real-world examples and provide concrete data to support their arguments, making the discussion both engaging and informative for the audience.
