The good news is that, at least for now, analysts don’t see Suisse as a systemic risk in the way that Lehman Brothers was in 2008. Still, there are ways to view Suisse’s ineptitude as systemic to modern banking. Economists have argued, for instance, that big banks consistently make huge mistakes because the concentration of power reduces diversity of thought. Others look to the moral hazard of bailouts to explain banks’ risk exposure.
What Credit Suisse and Three Arrows Capital Have in Common
