Credit Suisse Latest: Ripple Effects of AT1 Wipeout

The video discusses the impact of the 81 wipeout on UBS, the largest bank in Switzerland, and its ability to handle potential issues within Credit Suisse, particularly in its investment bank. The discussion includes the challenges of unwinding toxic assets and Cocos, market reactions, and the decision-making process behind the 81 wipeout, which was seen as the best of three poor options but could still be a mistake.

In what ways could the market react to the 81 wipeout decision?

What does the speaker imply about the decision-making process regarding the 81 wipeout?