Credit Suisse got a bailout from their Swiss government earlier today. Source: https://www.cnn.com/2023/03/15/investing/credit-suisse-shares-saudi-national-bank . But let’s not forget that their bailout has already happened: the US Fed bailed them out in October 2022, very recently. That particular bailout was called a “dollar liquidity swap” so as not to use the word “bailout”. Derivative plays take months and years, so the current situation should have been visible to the regulators for several years by now.

Apart from poor money management, banks engage in obscure, unreported gambling activities like bullet swaps, total return swaps, SFT’s (securities financing transactions, yes nobody knows what this is). A swap is an unreported, unregulated transaction between two parties. Only because it’s not in the news doesn’t mean it’s not happening. If you think that the only thing banks do is take your deposits and put them in treasuries (and SVB failed even at that) – make no mistake, banks engage in crazy derivative gambles. In the dark.

This ^ is a graph of a particular derivative gambling instrument, 1 year credit default swap for Credit Suisse. It is a gamble on Credit Suisse going bankrupt within a year.