Silicon Valley Bank Collapse "Second-Biggest" in U.S. History

It had nothing to do with whether the bank could pay higher interest to her customers. It had everything to do with not having the liquidity to give customers the money they had in their accounts when a large number of customers came looking for their money at the same time.

The reason it didn't have sufficient liquidity to repay it's customers' deposits was because the recent hike in interest rates devalued the bonds they had invested and relied on. They therefore sold them at a loss, and the bank collapsed as a result, unable to fill the hole through raising capital.
So higher interest rates were part of the reason for the collapse, but most certainly not for the reason you suggest.

 

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Nope. Sounds like you either got some misinformation from a fake news site, or just made something up in your head. Had nothing to do with the interest they were paying clients.

 

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Credit Suisse is the next to go Bankrupt?
It is a bad bank that help laundering money from drug lords and terrorists.

 

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Where did you get that misinformation from?

 

There was a leak back in 2022 that detailed some c.£80 bn linked to such people. Whether Credit Suisse are a "bad bank" because of this, I can't say, as I don't know how that compares to the rest of the banking sector. Did they "help" launder money? Or did they just not stop it by not knowing about it? No idea.

 

Credit Suisse is safe now?

 

Safe, yes, in that it has been bought out by one of its rivals, UBS.

 

some of her bonds have become rubbish.

 

investors want to sue CS for losing 14b in their bonds that become waste paper

 

So in other words they are like . . . hundreds of other companies out there who planned poorly and lost a huge amount of value for investors.

 

If you feel you were misled by the Bank, and were persuaded to invest in them, you, too, would have grounds for suing. Whether it succeeds or not is another matter. I guess it rests on whether CS deliberately sought to mislead their (current and potential) investors by hiding the financial troubles they were in.

There's also the issue here that certain bondholders should have been given priority over any shareholders (preferred or common stock), but the Swiss regulators seemingly just ignored the contractual nature of that arrangement. Expect them to also be sued as a result.