Sunday, May 2, 2021

Caveat Emptor (when dealing with Swiss banks)

Lost my balance and hurt my right hand, so I have spent the day studying the markets. Anglo-Saxon banks are scrupulously honest, but Europeans are highway robbers. African banks are chaotic, Asian banks - I am unsure. The Chinese, in my experience, are dishonest. Credit Suisse, my personal bête noire, is being sued in the Greensill affair, which at last understood.

It is like this: Credit Suisse froze $10 billion of Greensill's funds, causing its insolvency as it found itself unable to repay a $140 million owed to Credit Suisse. Incredibly, Credit Suisse continued to market Greensill funds as a fully insured, low-risk product despite a decision by insurers to discontinue coverage. All that knowing that Greensill was broke (they had caused its bankruptcy, did they?).  Seems to me a clear case of fraud.

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