Credit Suisse could go bust if ECB follows up on rate hike: Roubini

Credit Suisse could fold if the European Central Bank follows up on its planned hike in interest rates,"Dr. Doom" economist Nouriel Roubini has warned.

The struggling Swiss banking giant came under pressure Wednesday after its biggest shareholder, the Saudi National Bank, said it wouldn't able to inject more cash into the lender. The chance Credit Suisse could default on its debt alarmed investors, sparking a steep selloff in its shares. The ECB is due to release its latest monetary policy decision later Thursday, where markets are pricing in a rise of 25 basis points in interest rates. A hike that size would show a change in plan for the central bank, which has signaled a 50 basis point increase.

"If ECB hikes by 50bps it is possible that CS goes bust over the weekend & then the ECB has to reverse itself by next week," Roubini said in a"So hopefully it will not repeat the mistake made in 2011 during the EZ crisis when it hiked into that crisis. ECB/SNB need to give CS some liquidity lifeline," he said.

The Swiss National Bank, or SNB, appeared to provide a lifeline late Wednesday when Credit Suisse said it would

Their plan kill Credit Suisse. Kill it. Kill it.

It will never happen in Switzerland.

Ha ha Dr Doom! Where you been for 15 years bro

🤔

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