Western Banks 'Blow Up', $240B Assets 'Great Shift'?

The European and American banking industry has erupted into a crisis, with the entire world shrouded under the cloud of a financial crisis, and no one knows what will happen next!

First, Silicon Valley Bank in the United States went bankrupt, which then spread to several banks in the U.S.

Initially, U.S. Treasury Secretary Yellen was indifferent: bank bankruptcies are normal and will not be bailed out.

However, due to the chain reaction caused by the "blowout" of Silicon Valley Bank, the U.S. eventually intervened.

After "saving" Silicon Valley Bank, First Republic Bank in the U.S. received an injection of $30 billion from 11 major Wall Street banks, greatly easing the short-term liquidity crisis.

In the short term, the crisis of U.S. banks has been forcibly covered up, and for now, it is only a localized crisis.

However, the next move depends on the Federal Reserve's operations.

Whether it continues to raise interest rates or restarts interest rate cuts, it is like walking on a tightrope, and any misstep could lead to a plunge into the abyss.

Secondly, Credit Suisse in Europe also "blowout".

As a permanent "neutral country," Switzerland, last year, due to Western sanctions against Russia, froze the assets of Russian oligarchs, which greatly undermined its position as a "neutral country," and the credibility of Swiss banks was greatly discounted.

Having lost credibility, what place does Switzerland's financial industry have in the world?

Of course, in order to save the financial industry, which is its biggest bowl of rice, Switzerland must make every effort to save Credit Suisse.

The Swiss central bank may provide $280 billion to inject liquidity support into Credit Suisse, and $280 billion is equivalent to 192 billion yuan, which can almost "save" Evergrande.

However, another operation of Credit Suisse is shocking, 16 billion Swiss francs of tier one capital bonds were written off to zero, which means that investors holding 16 billion Swiss francs will not get a penny and will suffer a direct loss.

Moreover, this has almost risen to the level of "national default," and this operation has shaken the entire global financial market.

If you have deposits in Swiss banks or U.S. banks, what would you do now?

Recently, a message has begun to spread on the Internet: after the bankruptcy of Silicon Valley Bank and Credit Suisse, it has triggered a "big transfer" of overseas Chinese assets, involving 240 billion U.S. dollars, with funds flowing to Hong Kong and Singapore, and some to Canada and Australia.

At present, there is no official media that has the same statement about this news, so this is just an unconfirmed "rumor."

Nevertheless, in combination with the current "blowout" crisis of European and American banks, there is a lot of uncertainty in the future, so asset transfer is also a very normal operation, especially the "default" of Credit Suisse, which directly tore off the last "shame cloth" of Western bank credit.

The crisis of Credit Suisse is a microcosm of the entire European banking industry.

It is inevitable to withdraw one's own funds in time before the fire is completely out.

According to a report in The Wall Street Journal, in 2022, the customer funds of Credit Suisse lost more than 100 billion Swiss francs, and after the outbreak of the Credit Suisse crisis in March this year, the speed of capital loss is faster.

The same is true for the U.S. banking industry.

The current bailout is just a temporary cover-up, and it does not mean that the risk will disappear.

Therefore, from Silicon Valley Bank to Credit Suisse, the crisis of European and American banks has made Chinese tycoons very nervous, and the safety of overseas assets has been greatly discounted, especially the deposits in overseas banks.

If not transferred in time, it may really become a fish on the chopping board of others.

As the saying goes, you are attracted to the interest of others, but others have always been staring at your principal.