Farren's Opinion Corner

To put it simply, Credit Suisse's collapse will rock the financial world for at least the next year. Before its default, Credit Suisse was identified as a Global Systematically Important Bank (G-SIB ), or in other words, they were considered as a bank 'too big to fail' due to the value of the assets they held, over $1 trillion Swiss Francs. I previously wrote that SVB Collapse sent a nostalgic flashback to the Lehman Brothers collapse in 2008, in a way, Credit Suisse's collapse has further amplified the call of a possible recession ahead.  But unlike SVB Collapse, Credit Suisse did not collapse because of a decision they made, they collapsed because they were poorly managed resulting in lawsuits, tax fines and fees and thus, a loss in financial trust. The S&P gave Credit Suisse a rank of BBB-, the lowest of any G-SIB bank. As Author Patrick Dixon points out, "In business or finance, trust is the only thing you have to sell". In my opinion, the Swiss Centra...

Make no mistake, Silicon Valley Bank (SVB) and their sudden default is sending shockwaves not just within the US, but around the World. Their collapse sends a nostalgic flashback to the collapse of Lehman Brothers in 2008, which marked the beginning of the great recession.  Lehman's default was most certainly impactful, the stock market with little warning, tanked. The Federal Chair with little details, sit in disbelief as the national market crashed. Lehman's default was so impactful not because it was a sudden default, but rather, the importance of the default. Lehman held $639-billion in assets the day it defaulted or 3x the size of SVB, all gone and liquidated at an instant. Now this default, as it seems, is all reminiscent of the default that shocked the World 15 years ago.  SVB's default, while not as significant and important as Lehman, is definitely still worth noting. When it defaulted on 10 March, it was the second largest investment bank default in history. At it...