'Trading Like a Lehman Moment’ — Credit Suisse, Deutsche Bank Suffer From Distressed Valuations as the Banks’ Credit Default Insurance Nears 2008 Levels
It’s been more than a decade since the financial crisis in 2007-2008 when Lehman Brothers, the fourth largest investment bank in the U.S., collapsed and filed bankruptcy. Close to 14 years later, Credit Suisse and Deutsche Bank, two of the world’s largest banks, are suffering from distressed valuations and the banks’ credit default insurance levels are approaching degrees not seen since 2008.
Investors believe that the two financial giants are facing a significant crisis and they don’t believe the statements made by the Credit Suisse. Some have criticized the banks’ auditing process as they believe Credit Suisse and Deutsche Bank are up to their necks in debt and bad loans.
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