Credit Suisse Group AG

Credit Suisse's 166-year lifespan ended March 19, 2023 when UBS acquired the failing bank for CHF 3 billion in a state-brokered rescue - a cautionary tale of credibility collapse accelerated by network effects. The proximate trigger: Saudi National Bank chairman (10% shareholder) stating "absolutely not" when asked about further investment (March 15, 2023), causing 30%+ share price plunge. But underlying causes accumulated over years: $5.5 billion Archegos Capital loss (2021), $3+ billion Greensill Capital exposure (2021), CHF 111 billion wealth management outflows (Q4 2022) driven by social media rumors. This is information cascades made lethal - once confidence breaks, withdrawals become self-fulfilling prophecy. Swiss authorities provided CHF 100+ billion SNB liquidity and CHF 9 billion loss guarantees to facilitate UBS takeover, while CHF 16 billion Additional Tier 1 bonds were written to zero (subordinated creditors wiped out before equity). A 2024 parliamentary inquiry found "long-term mismanagement" by board and executives caused the crisis, with too-big-to-fail regulations placing "too much importance on bank demands." Credit Suisse demonstrates that in trust-based industries, reputational damage accumulates silently until phase transitions erase decades of franchise value overnight. The bank's collapse proves that systemic importance (serving 1.5+ million Swiss clients, global wealth management leadership) cannot prevent failure when stakeholder confidence evaporates - network effects that build empires also accelerate their collapse when reversed.