Credit Suisse’s $3.2 billion cut-price sale signals an ongoing crisis that could expose unicorn fintechs

Credit Suisse’s $3.2 billion cut-price sale signals an ongoing crisis that could expose unicorn fintechs

The swallowing of Credit Suisse after a historic week for the banking sector should raise the question for a batch of highly valued startups that want to disrupt finance: Am I next? The saga that culminated last week in by rival lender UBS all started after an off-hand remark from Saudi National Bank, Credit Suisse's largest shareholder, suggesting it had little intent of upping its holding. A crisis in confidence ensued, sparking a huge share and bond price drop and customer outflows. from the Swiss National Bank wasn't enough to keep Credit Suisse afloat, and UBS stepped in. It is the latest sign of a financial system that is cracking, after the . Credit Suisse suffered idiosyncratic problems, such as , as well as crises relating to its relationships with hedge fund Archegos Capital and financial group Greensill Capital. Its delayed annual accounts showed it was around $8 billion in the red, and ultimately it fell after a collapse in investor confidence. But it is clear . And that should have lessons for the shiny, fast-growing companies that want to be banks, and have only known an era of easy venture capital money and low interest rates. "There's already a