Replying to Avatar Josua Schmid

The cantonal banks in Switzerland can not go bankrupt without the state going bankrupt as well. That called state guarantee here.

In practice a lot of other banks seem to have non-formal state guarantees as well, because they‘re bailed-out.

Regarding securities:

There‘s just a legal order in which creditors are refunded during bankruptcies. Biggest creditors first. So Blackrock will probalby get back their securities but not you.
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DataNostrum 2y ago

The absurd thing is, why tf should a custodian be allowed to use my stocks as collateral in the first place. How does it make any sense, and how are the people who enabled this not under constant public outrage?

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Josua Schmid 2y ago

It makes kind of medieval sense to me. If you rented cattle from your neighbor and went bankrupt, I would just take the cattle and make you reliable for the loss. You control it, so it‘s your problem. This may not work anymore for corporations, because you cannot really go after legal bodies with limited liability.