Roubini Says Credit Suisse Might Be 'Too Big to Be Saved'

The transcript discusses the role of Swiss regulators in the Credit Suisse crisis, highlighting their potential to act despite a delegated system. It addresses the challenges of intervening in a situation where Credit Suisse is considered too big to fail yet too big to save. The discussion also covers the limitations of resources available for a bailout, contrasting it with the U.S. federal system, and emphasizes the need for additional capital to prevent negative outcomes.

What is the current role of Swiss regulators in the Credit Suisse crisis?

• They are completely inactive.

• They can be active even with a delegated system.

• They have already solved the crisis.

• They are waiting for instructions from the United States.

What does the term 'too big to fail' imply for Credit Suisse?

• The bank is large but can easily be saved.

• The bank is small and insignificant.

• The bank is large and its failure would have widespread consequences.

• The bank is too small to be noticed by regulators.

Why might Credit Suisse be considered 'too big to be saved'?

• It has no financial issues.

• It has unlimited resources.

• The federal system lacks sufficient resources for a bailout.

• It is already saved by the Swiss government.

What is the primary need for Credit Suisse to avoid negative outcomes?

• More capital

• More regulations

• More branches

• More employees

What could happen if Credit Suisse does not secure additional capital?

• The bank will merge with another bank.

• The bank will expand rapidly.

• The bank will face negative consequences.

• The bank will become a global leader.