EUR/CHF peg beeing attacked for the first time

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What could possibly go wrong?
 
The Swiss National Bank (SNB) has started to "diversify" 10% it's fx reserves into (get this) "passive stock index investments". They're replicating different national stock indexes on their own. That led them to become a major shareholder in Nokia, with a position large enough to be reportable. Stupidity at it's best.

Our central bank is now nearly as stupid as the Norwegian sovereign wealth fund which got burned both in subprime as well as PIIGS bonds by their advisor ... Goldman Sachs.
 

http://www.zerohedge.com/news/2012-...credit-suisse-sets-negative-chf-deposit-rates

 
The weird part of the story is that UBS didn't follow the move.
That means a lot of deposits could be transferred to them. Maybe UBS is waiting for a few days and reacts then. A synchronized announcement of NIRs on deposits by both Swiss tbtfb (CS and UBS) could have stirred up consequences from Swiss anti-trust law enforcers. However, I don't think that CS just came up with the NIR idea. My guess is that they were told to apply it by the SNB. Such a move is usually politically sanctioned somehow.
 
...so tell me again, why it is that investors wouldn't get some PMs now, instead of these nice pieces of paper? :flail:

:rotflmbo:
 
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