(Bloomberg) -- Credit Suisse (SIX:CSGN) Group AG could be too big to bail out, economist Nouriel Roubini warned Wednesday, as shares of the troubled bank nosedived to a record low.
“The problem is that Credit Suisse, by some standards, might be too big to fail, but also too big to be saved,” Roubini, who’s known as “Dr. Doom,” told Bloomberg TV. It’s not clear the bank’s regulators have the resources to engineer a bailout, he added.
Across the Atlantic, three regional US banks failed in recent weeks — including Silicon Valley Bank, a California lender largely serving startups and technology companies.
Federal regulators seized Silicon Valley Bank and promised to make customers whole, even if their deposits exceeded the level of $250,000 insured by the Federal Deposit Insurance Corp.
Credit Suisse, whose largest investor has ruled out boosting its stake in the bank, also risks failure, Roubini said.
“The question is whether they get the capital or not,” Roubini said. “Otherwise, bad things can happen.”
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