Deposit outflows quickly followed, the share price fell and the CDS spread spiked. In the end, the Swiss National Bank provided additional liquidity assistance, and Credit Suisse was sold to UBS. FINMA, the Swiss supervisor, came with a write-down of Credit Suisse's AT1 securities. The bank was not bailed out.
Other measures, such as the inclusion of sovereigns in the large exposures regime might lead to more substantial repercussions, but these would be manageable if introduced over a transition period – which undoubtedly has to be granted. When it comes to funding costs for governments, a healthier banking system with better diversification would pose less of a burden on states.