In a joint statement with the Swiss financial market regulator FINMA, the Swiss National Bank (SNB) said Credit Suisse (CS) met the "strict capital and liquidity requirements" imposed on banks of importance to the wider financial system. Switzerland's central bank said Wednesday it was ready to provide financial support to Credit Suisse after shares in the country's second biggest lender crashed as much as 30%. The Swiss National Bank's headquarters in the Swiss capital, Bern, in August 2022. "Federal regulators deemed them to be in the category of systemic risk, so they granted an exemption." "I do think there's a little bit of moral hazard here," she said, referring to the idea that banks may take on more risk if they think they'll get bailed out ( more from my colleague Allison Morrow on that concept is below).Īs to why the FDIC made the decision it did? The Federal government didn't want SVB's failure to "have a domino effect," Khalfani-Cox said. Lynnette Khalfani-Cox, CEO of AskTheMone圜, wondered the same thing, she said during the program. "How does this inspire confidence in our system?" "Why does this bank and account holders get special treatment to be made fully whole?" he asked. While it was welcome news for account holders, the extraordinary move raised questions for some, who wondered why the FDIC bent its rules for SVB and its customers.Įric Krahn, a computer systems engineer from Iowa, asked this question during a CNN primetime event on Wednesday. But by Monday, they could breathe a sigh of relief - the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation had said over the weekend that it would make each customer whole, even beyond the $250,000 insured by the FDIC. But they never came to pass because thanks to the US government’s efforts to step in and backstop all deposits at SVB she had access to all her funds by Monday.Īfter Silicon Valley Bank failed on Friday, its customers were filled with fears. I communicated that to my team on Friday,” Pham said.īeyond that, though, she had to battle her fears and plan for worst-case scenarios. Of course with the $250,000 that was insured by the FDIC, that was going to be the first order of business. ![]() “I was very committed to ensuring that we were going to take care of our team. ![]() ![]() What she didn’t do was tell her nine employees that the company might not make payroll. So it was very challenging,” Pham told CNN’s Poppy Harlow. “We had to run payroll, manufacture product, operate the business, and fundamentally those funds were the lifeline of the business. Vanessa Pham, co-founder and CEO of Asian food company Omsom, felt like her business was facing an existential threat last Friday when she learned her bank, SVB, had gone under. Vanessa Pham, co-founder and CEO of Asian food company Omsom talks with CNN's Poppy Harlow.
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