Top Economist Warns: Global Banking Earthquake Is Coming in Switzerland! , Pennies

Panic in the financial markets!

Share prices of major banks such as Swiss Credit Suisse, French BNP Paribas and Deutsche Bank have declined in the past few days.

On Wednesday, Deutsche Bank shares were down 55 percent from their highs of the past twelve months (14.33 euros), Credit Suisse shares were down 44.3 percent (9.60 euros) and BNP Paribas shares 64 percent (44.40 euros)!

At the same time, the prices of credit insurance, which creditors use to protect themselves against bank failure, shot up.

Is the big bank earthquake coming now?

Yes, Professor Mark Chesney of the University of Zurich is afraid! “Big banks like Credit Suisse and Deutsche Bank have made high-risk financial bets in recent years. Without government guarantees, they would probably have already gone bankrupt,” the top economist told BILD.

Deutsche Bank counters, and when asked, states that its capital cushion has increased recently, and that its reserves are 51 billion euros above legal requirements.

But a spokesman for the European Central Bank (ECB) has also warned of uncomfortable times for financial institutions.

The European Union’s supervisory body ESRB last week issued a “general warning” warning of a new financial crisis.

Is a new bank earthquake coming 14 years after Lehman’s bankruptcy, and will taxpayers have to prepare for a bailout of billions?

Top economist Chesney doesn’t deny this, but he does warn: “If taxpayers must act now for the misconduct of bank managers, it is the opposite of liberalism and a profound injustice.”