A seemingly hastily constructed plan has saved the day.
Or has it?
Apparently many CS customers looking to move their money elsewhere, small regional banks the key beneficiary. Tip of the iceberg.
How many towns and villages have both a CS and UBS branch? UBS will surely seek to rationalise branches and staff. Impact on jobs? Impact on local communities?
Has the can simply been kicked down the road: the fear was that CS was too big to fail. But hang on, now we have a single pre-eminent bank in Switzerland, too big too fail. How long before UBS gets complacent? How long before UBS becomes the new albatross? Might take decades, but if it fails, what then?
What steps might the SNB/Finma/BR now take to defuse that ticking time bomb?
Thoughts?