Today, banks are allowed to invest and manage funds at the same time. This is too dangerous, according to some politicians in Bern. Experts, on the other hand, see the construct as less problematic.
Today, banks are allowed to invest and manage funds at the same time. This is too dangerous, according to some politicians in Bern. Experts, on the other hand, see the construct as less problematic.
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We used to have a separation bank system (Trennbankensystem) and we should return.
Why should the retail and private banking clients carry the risk for those self-serving and notorious gamblers? It only incentivizes bad behavier and plays into the hands of our socialists, and to be fair, I kinda understand them. They are not right, but I do see how someone would come to a wrong conclusion.
There are some other things we must change, but that is beyond the scope of this post.
If it’s too big too fail, it too big to exist
Imagine being able to go to the casino and if you win you keep the winnings and if you lose the government gives you back the loses. That’s the reality of banking today.
Whatever helps to stop the banks from looting the government’s coffers, is welcome!
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Our monetary system is fundamentally broken… people have been calling it for years. The downfall of these banks is no surprise to anyone who understands the underlying issues of modern Monetary Market Theory. The 2008 market crashes were projected > 2 years prior and could’ve been projected much earlier. Sooner or later we are going to change the Monetary System and remove power from government. An unknown cryptographer already made a perfect alternative in 2008 to presumably show how it could be made better – This is how bitcoin got created – not crypto, bitcoin.
The US is currently trying to prevent this from happening for another few years by trying to force the implementation CBDC (Central Bank Digital Currency). This would allow them to tie all you financials to you and would mean the end of privacy in the financial system.
The current derivatives market (bets made on the stock market which are not part of it) have reached the volume of being 11x bigger then the Global GDP. This overleverage and counterparty risk is how a 100’000$ mortgage failure could lead to 1’800’000$ in damages during the housing crisis – and it got worse since then, not better.
As long as the money keeps flowing and the US debt rises everything goes well, stocks go up, the people suffer (40% of Americans today live below the poverty line due to this system crushing them financially and wages not going up, 40%!!!!!). When someone starts uplling their money or a Counterparty defaults on a bad trade it sends shockwaves through the entire global economy. Long-Term risk management does not matter to banks or their respective shadow banks (Hedge Funds, Private Organzations, etc.) as long as the money keeps coming in in the short term – they know that they will get bailed out so they just don’t care.
I am not a Communist btw. I believe in Capitalism and fair market, but this is just not the reality we live in and people have to realize it at some point.
Sorry to say it, but the UBS needs to be nationalised. It’s the only way to secure responsible business practises.
Merging the two banks creates a bank twice as big as the entire Swiss economy.
This is a huge, single point of failure that destroys trust in Swiss banking for outsiders and puts the entire swiss economy in an extremely precarious position.
There is nothing stopping what happened to CS, happening to this new merged bank…. At this point, I have to say that expecting it to not happen is probably naivety, and we have to look at this and say “how will the economy survive when they go under”
because I doubt we’re going to solve greed any time soon.
The problem is that it’s the USA that should put this in place. It was actually in place until Clinton removed it in the 1990s.
If Switzerland puts it sadly there would be limited impact as a Swiss bank could still do what they want with their US subsidiary. And Needless to say most of the investment banking takes place on Wall Street.
I still don’t understand why they didn’t nationalise CS instead of this government forced acquisition. I still don’t get why this was found the best solution as Berset said. Now we have one giant single point of failure. Can someone explain ??
[Experts say it’s working fine](https://imgur.com/t/this_is_fine/UeHRRSO)
“Experts” or politicians which makes profit with this companys? I would listen what they want and do the opposite in general.
Honestly, I want to see someones head roll. You try to be a decent human, sometimes struggle through life, plan and try to be responsible.
Then you read about the shit they’ve been doing. Fuck them all, make them fall, burn them down.
It won’t fix shit but I’ll sleep better.
The takeover is already moronic in epic proportions. The two are already too big, yet the best thing they can think of is to make it even bigger.
But yes, separation of commecial banking and everything else has my full support. And require 10% equity for each and every individual open contract for the casino part.
Some left-wing media telling us that banks should be split up? Bit surprise.
Besides, if managing funds is just an infrastructure and no longer a customer facing service there will just be some faceless infrastructure company that provides it and the marketing will be done by the investment banks? What would we gain by tha?
These banks are dangerous for our neutrality and our democracy. The swiss state must start to strongly control what these mostly foreign owned banks (by american and saudi arabian / qatar entities for example). What their managers do must be closely observed by state specialists.
The people should pretend absolute transparency since these banks are being saved with swiss public money!