This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.Speaker 2: California regulators shut down Silicon Valley Bank.
Speaker 7: The Swiss Bank has seen its shares tumble this week with billions of dollars wiped off its market value. Margo Patrick: At home in Switzerland it's a bit like a JP Morgan or a Bank of America where there are lots of branches, and it's one of the main banks that people use for their day-to-day banking. Across the world it's known more as a private bank for rich people. So that's their bread and butter business to help rich people manage their money.Margo Patrick: For watchers of this bank, it has been something of a slow car crash over the last few years.
Margo Patrick: That's the culture that investors have zeroed in on a Credit Suisse, what they've been concerned about is that the bank's risk culture is leading it to enter into business it shouldn't enter into that will cause it problems later. Margo Patrick: In early October, there was something of a social media storm on Twitter and Reddit and other outlets where many people were speculating that Credit Suisse could fail and that it was really in trouble. And at the time, there wasn't really anything that sparked those particular concerns, but it was enough that in fact, Credit Suisse customers did pull their money from the bank.
Margo Patrick: So I think when investors started looking at Credit Suisse, they became concerned that Credit Suisse could face some of these same dynamics as Silicon Valley Bank, where the requests from customers to get their money back would just be too great for it to keep up with without having to take some kind of major losses.
Speaker 10: I'm wondering whether you would be open to assisting further if there was another call for additional liquidity from Credit Suisse.Margo Patrick: Absolutely not. He went on to say that they believed in Credit Suisse's restructuring plan and supported management. But what the market really heard was Saudi National Bank is Credit Suisse's largest shareholder, and it's not willing to put in any more capital.Margo Patrick: They're not going to come to the rescue.
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