Inside the turmoil at Credit Suisse
Business InsiderJUL 2022
The Spin
Narrative A
Credit Suisse has made the right decision to calm anxious investors after a week of concerns about the bank's financial health, indicating that it isn't facing a liquidity crunch and allowing it to save money. This move has successfully boosted its shares and reduced the cost of insuring its debt.
Narrative B
Though Credit Suisse shares have jumped following this announcement, the debt buyback represents only temporary relief to the bank's ongoing crisis. Only a deep restructuring plan can restore confidence and attract the billionaire amount of money needed to break the cycle of bad news involving Credit Suisse.
Metaculus Prediction
There's a 50% chance that the next great financial crisis in the US will occur by November 2029, according to the Metaculus prediction community.
