Cpcmcredit Blog

There has been substantial coverage of the collapse of Credit Suisse and there is perhaps little to add to what is a disturbing event with natural concerns about contagion and the fragility of other banks. Assurances have been made but there is a sense of Christine Keelers famous quote, “they would say that wouldn’t they?”. However on balance it does appear to be a more isolated than not

Having said that there are two very different points that spring to mind and one relates to asset finance

Credit Suisse were the backers of Greensil and anyone who has read the excellent Pyramid of Lies will be fully aware that CS’s controls and judgements were chronically lacking. They took a huge hit but whilst that wasn’t the reason for the collapse of the bank, its surely indicative of a badly run organisation from top two bottom?

Yet again, ludicrously re-numerated bankers have failed in the basics of their “profession” and yet again they will be bailed out which brings us to the next point

If there is contagion and further banks have to be bailed out, what is the public reaction going to be? Banking is, by a country mile, the least respected sector of the economy and I imagine that various administrations are dreading the scenario of justifying “bail outs” in these difficult and stringent times.

That is the very definition of a Hard Sell