Credit Suisse Outdone by Dogecoin (DOGE) in Value
Dogecoin, a cryptocurrency parodying Bitcoin, has surpassed Credit Suisse in terms of market capitalization. The value of Dogecoin stands at $10bn, compared to Credit Suisse’s $7.3bn. The Swiss bank’s recent disclosure of “material weaknesses” in its financial reporting controls, customer outflows and share price drop of 25% has contributed to concerns of a wider financial contagion. Although the Swiss National Bank is monitoring the situation, Credit Suisse’s current state has led to a default probability of 47%. Hedge fund manager, Kyle Bass, has tweeted that Credit Suisse has less than three weeks to sell in distress to a better-capitalised bank or face ruin. The US Department of the Treasury is also monitoring the situation while the Swiss government is being urged to take action.
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