Swiss Capital Controls Escalate As Credit Suisse Sets Negative CHF Deposit Rates

Tyler Durden's picture


In a world that already makes little sense to most, Credit Suisse just pushed the envelope a little further. The bank has just announced that going forward it will be charging for firms to hold a CHF cash balance - i.e. the bank, given the already-negative Swiss government bond yields, has moved to its own NIRP for its clients. The need to do this suggests an overwhelming desire for short-term safety that flies in the face of the seeming level of complacency that exists in the European bond (and stock markets). As we have warned before, it seems that the currency wars that appear to have escalated have now started the 'capital control' wars as CS (and implicitly the SNB) adds this negative interest rate 'charge' to its already pegged currency in the vain hope of managing the unmanageable flow of safe-haven-seeking cash.


In other words, Europe is so fixed, Swiss banks are furiously doing everything in their power to halt the dumping of EUR in exchange for CHF, and to push everyone, kicking and screaming, into the absolutely safety and well-being of the Euro, which according to Eurozone politicians is strong as diamond, which is vernacular for as close to collapse as the next Greek popular election.

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Mon, 12/03/2012 - 09:26 | 3029271 GetZeeGold
GetZeeGold's picture



You are free to go.....but you have to leave your money here.

Mon, 12/03/2012 - 09:28 | 3029280 jazze
jazze's picture

Go Long CHF Banknote printers... atleast they still have 1000chf notes

Mon, 12/03/2012 - 09:39 | 3029310 saturn
saturn's picture

The Swiss are terrorists.

Mon, 12/03/2012 - 09:44 | 3029324 Ar-Pharazôn
Ar-Pharazôn's picture

pffffhahahah really funny

Mon, 12/03/2012 - 09:57 | 3029368 Urban Redneck
Urban Redneck's picture

Victims of terrorism often exhibit displacement.

Practitioners of terrorism often use projective identification to isolate those who will not submit to their designs.

Useful idiot or troll, take your pick-

Mon, 12/03/2012 - 10:37 | 3029478 fredquimby
fredquimby's picture

And we are all armed :)

Mon, 12/03/2012 - 09:26 | 3029273 fonzannoon
fonzannoon's picture

Poor Gpap's mom. Another victim of Nirp.

Mon, 12/03/2012 - 09:27 | 3029276 Lost Wages
Lost Wages's picture

Euro bears are stupid enough to keep their money there anyway.

Mon, 12/03/2012 - 09:27 | 3029277 Robot Traders Mom
Robot Traders Mom's picture

These fucking crooks are pushing the sheep right off the cliff...The selloff will be unlike anything we've seen. You won't want to be the last person holding junk or anything with a duration longer than about 2....

Mon, 12/03/2012 - 09:34 | 3029294 HoofHearted
HoofHearted's picture

Shit, it's time to invest in gold, guns, or in your mattress. I'd prefer the first two, and it seems that people are about to get pushed into my favorite asset classes. I know. They want everyone to put money into stocks. Forgetaboutit.

Mon, 12/03/2012 - 09:28 | 3029282 JimmyCDN
JimmyCDN's picture

To NIRP and beyond!

Mon, 12/03/2012 - 09:52 | 3029345 XitSam
XitSam's picture

NIRP: Negative Infinity Rate Policy

All your wealth are belong to us.

Mon, 12/03/2012 - 09:31 | 3029288 cossack55
cossack55's picture

Huh! Too bad my PMs don't pay interest, since they fell out of my boat, I guess it no longer matters.

Mon, 12/03/2012 - 11:36 | 3029658 natty light
natty light's picture

Friggin canoe; so unstable.

Mon, 12/03/2012 - 09:31 | 3029289 LawsofPhysics
LawsofPhysics's picture

Negative interest rates would imply that these banks don't want the paper.  Otherwise, why would they charge you to hold your own paper?  This shit-show, can't burn down fast enough.  Banks need to simply be banks again and not gambling dens of theives.

Mon, 12/03/2012 - 09:35 | 3029296 fonzannoon
fonzannoon's picture

Banks will never be banks again. They would rather a mass suicide than sobering up.

Mon, 12/03/2012 - 09:32 | 3029292 ziggy59
ziggy59's picture

So cash is no longer king?

Mon, 12/03/2012 - 09:36 | 3029299 JimmyCDN
JimmyCDN's picture

And if your account balance is less than zero, do you collect interest on owing money?

Mon, 12/03/2012 - 09:38 | 3029305 the not so migh...
the not so mighty maximiza's picture


Mon, 12/03/2012 - 09:39 | 3029313 Urban Redneck
Urban Redneck's picture

The cotton-linen type still works fine.  The fee structures that Swiss banks charge make them unattractive in even a ZIRP environment for da- to-day expenses.

Mon, 12/03/2012 - 09:34 | 3029295 holdbuysell
holdbuysell's picture

Paying someone to hold something for you that is intrinsically worthless.

Complete and utter insanity.

Mon, 12/03/2012 - 09:39 | 3029309 godzila
godzila's picture

anyone with an official source ?

Mon, 12/03/2012 - 09:39 | 3029311 PapSmear
PapSmear's picture

Austerity bitchez!

Mon, 12/03/2012 - 09:40 | 3029316 Josephine29
Josephine29's picture

It has been coming for a while. Back in late May I read an article which looks ever more prescient now.

Negative interest rates and yields may be the future; For Switzerland (and Germany?) they are the present

Dont forget that if the LDP win in Japan we will be getting them there too........


Mon, 12/03/2012 - 09:41 | 3029317 q99x2
q99x2's picture

I noticed that this morning 1.3... something and climbing fast. Looked like a strong currency the way it has kept climbing as Europe collapses.

That doesn't seem like a good idea to me.

Mon, 12/03/2012 - 09:45 | 3029326 youngman
youngman's picture

Maybe this is how the Bernanke is going to get control of the hyperinflation.....just send all our extra dollars to the SWISS....or force us to open an account there....where they charge us to keep them....yeah that will work...can you do it in 15 minutes

Mon, 12/03/2012 - 09:53 | 3029352 HurricaneSeason
HurricaneSeason's picture

Is the interest rate loss tax deductable?

Mon, 12/03/2012 - 09:54 | 3029358 LongSoupLine
LongSoupLine's picture

Yet another fucking great central bank ploy to extract wealth away. NIRP is the fucking end of the game folks.

Eat shit central banks and the fucking global TBTF fuckers you support as your sole mission. Fucking assholes.

Mon, 12/03/2012 - 09:55 | 3029359 forwardho
forwardho's picture

Fear, naked, mercilous, fear. These folks have nowhere safe to shield their assets. That these same people will take a dry rusty pipe and say, thank you sir may I have another, Quite frankly  terrifies me. They are not the most humble of humanity.

Mon, 12/03/2012 - 10:06 | 3029386 Quinvarius
Quinvarius's picture

I'm sorry.  What is bank for again?  Isn't it to take deposits and make loans?

If there has been one act in the last 4 years that indicates we have no banking system in the West, this is it.  It is an open declaration that there is no such thing as a functioning bank, or a functioning currency.

Mon, 12/03/2012 - 10:08 | 3029402 swabeyjw
swabeyjw's picture

It 's pride thing. Alternate was announce all deposits will be used to buy a portfolio of euro country debt at 10x leverage.

Didn't google just buy some storage box company. Must be planning high security long term boxes at Swiss airports.

Mon, 12/03/2012 - 10:10 | 3029408 fredquimby
fredquimby's picture

They can try. I exchange all my extra paper for gold every month and they can't NIRP gold. haha.

Mon, 12/03/2012 - 10:49 | 3029512 godzila
godzila's picture

I'm not doubitng the info but if anyone could link to an official statement from the bank would be appreciated.

Mon, 12/03/2012 - 10:56 | 3029532 Seasmoke
Seasmoke's picture

Bullish for mattresses. I suggest tempur-pedic.

Mon, 12/03/2012 - 12:13 | 3029773 resurger
resurger's picture

A deposit ratel that i cant refuse..

Do NOT follow this link or you will be banned from the site!