#CreditSuisse #Market #bailouts #Fiat

Credit Suisse, the second-largest Swiss bank, suffered a dramatic fall in its shares on Friday despite a massive financial bailout announced by the Swiss Central Bank on Wednesday. The bank's shares lost almost 12%, breaking the 1.8 Swiss francs barrier, despite the fact that the Swiss Central Bank had injected nearly $54 billion to bolster the bank's liquidity.

The fall in Credit Suisse shares comes amid a stormy period for banks in the United States, following the collapse of three institutions in less than a week, marking the worst banking crisis since the 2008 financial crisis. The situation has led authorities to take drastic measures to protect deposits, creating uncertainty in global markets.

In London, the FTSE 100 lost 0.29% at midday, while Paris' CAC 40 and Frankfurt's DAX also declined by 0.59% and 0.39%, respectively. In Madrid, the Ibex-35 also recorded losses, falling by 1.39%. In the United States, futures also showed a decline, with the Dow Jones falling by 0.5%, the S&P by 0.52%, and the Nasdaq by 0.11%.

Credit Suisse's turbulent week saw the bank's shares plummet in the stock market. Fears for the banking sector led to the Swiss Central Bank's bailout of $54 billion to strengthen the bank's liquidity.

Despite the turmoil in the financial markets during the week, the public debt market recovered following the European Central Bank's (ECB) message on Thursday. The ECB's Supervisory Board, led by Andrea Enria, met in an extraordinary session to evaluate the situation in the financial markets and the banking sector after the recent turbulence.

"The Supervisory Board meets to exchange views and update members on recent events in the banking sector," said an ECB spokesperson. The banking supervisor's meeting took place just one day after ECB President Christine Lagarde defended the strength of the European banking system and expressed the central bank's readiness to provide liquidity if necessary.

Meanwhile, sources familiar with the matter told Bloomberg that both UBS Group and Credit Suisse Group opposed a potential forced combination of the two entities. UBS would prefer to focus on its independent strategy and would be reluctant to take on risks associated with Credit Suisse.

In the minutes before Wall Street opened, First Republic Bank's shares also recorded sharp losses, despite receiving an injection of $30 billion from 11 other US banks, including the four largest (Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo).

The fall in Credit Suisse's shares and the situation with other banks in the United States have created uncertainty in global markets. The situation highlights the need for banks to be transparent and accountable to restore confidence in the banking sector.

#UBS #CreditSuisse #Fiat #Bank #crypto2023

UBS, Switzerland's largest bank, has agreed to acquire Credit Suisse, one of its largest rivals, for CHF 3,000 million (USD 3.23 billion). The announcement came after a weekend of intense negotiations between the two banks, the government, the central bank, and the regulatory authority. The Swiss Confederation President, Alain Berset, confirmed the deal and said in a press conference that it is the best way to "restore confidence."

The purchase will be made in UBS shares, at a price of only CHF 0.76 per Credit Suisse share, which is triple the amount offered earlier in the day but significantly below Credit Suisse's Friday closing price of CHF 1.86. The merger of the two banking giants, both of which are among the 30 key banks in the global financial system, is expected to be completed and announced in time for the opening of Asian markets.

UBS will benefit from a government guarantee of about CHF 9,000 million (USD 9.75 billion) as insurance if problems arise, said Finance Minister Karin Keller-Sutter. In addition, the central bank will provide a liquidity line of up to CHF 100,000 million (USD 108,000 million) to UBS and Credit Suisse.

The merger is seen as crucial not only for Switzerland but also for the stability of the entire global financial system. UBS, which took several years to recover from the 2008 financial crisis and a massive government bailout, is starting to reap the rewards of its efforts.

However, it required a lot of effort from the authorities before the bank's management agreed to take on the role of rescuing Credit Suisse. The Swiss banking union "demanded" the participation of social partners in the discussions, given the "enormity" of what is at stake in the acquisition, which could mean the massive loss of jobs.

Credit Suisse's collapse rocked the global financial system last week, as panicked investors dumped their stocks and bonds following the collapse of several smaller US lenders. Under pressure from regulators, UBS must complete its acquisition of its rival, Credit Suisse, by Sunday.

#Fiat #Bank #Market #Bankruptcy

Credit Suisse, a Swiss bank providing investment banking and asset management services since 1856, has recently seen a rise in bankruptcy risk. This development is making investors nervous and leading them to consider how the bank's potential downfall could affect the global market.

Credit Suisse has 50,110 employees worldwide and a market capitalization of $7.5 billion, according to its website and data from Companiesmarketcap. Given the recent bank closures in the US and internal issues at Credit Suisse, the increase in bankruptcy risk has heightened market volatility. Stocks of various banks have declined due to widespread mistrust in the banking system, while assets such as gold and Bitcoin have increased in value as they are perceived as safe havens.

If Credit Suisse were to go bankrupt, it could trigger a financial crisis, according to asset strategist Ven Ram. He stated that "the eurozone economy will fall off a cliff, turn the global financial system upside down, and halt the tightening of major central banks' policies."

To put Credit Suisse's magnitude into perspective, the specialist noted that its assets under management last month were nearly CHF 1.3 trillion, which is equivalent to $1.4 trillion. This amount "would be almost 10% of the €14.5 trillion economy of the euro area," he said.

Credit Suisse is deemed systemically important by the US Financial Stability Board, meaning that it is too big to fail since its collapse could trigger a financial crisis. Thus, regulators might save the bank in the event of bankruptcy. The US government covered the uninsured deposits of banks like Silicon Valley Bank and Signature Bank, as reported by CriptoNoticias, thereby calming investors' and depositors' worst fears and averting a financial crisis. However, it is uncertain how the situation could unfold in Europe.

Investors are waiting to see if interest rates will continue to rise aggressively or not. If they do, the crisis could worsen for the banking industry. For now, however, a bankruptcy is not possible, according to Credit Suisse. The bank has said that its capital and liquidity base "are very strong" and "exceed all regulatory requirements."

Ultimately, the situation remains uncertain, and the market is keeping a watchful eye on developments.

#Fiat  #Bank  #Market  #Bankruptcy

Recent events surrounding Credit Suisse have sparked concerns among investors and regulators alike. The Swiss bank, which is a major player in the international investment sector, has reported "material weaknesses" in its financial reporting and control systems, leading to a significant drop in the value of its shares.

In response to these developments, the Swiss National Bank (SNB) and the Financial Market Supervisory Authority have issued a joint statement reaffirming their commitment to maintaining stability in the financial sector. They have assured the public that Credit Suisse meets all the regulatory requirements regarding capital and liquidity.

However, the statement goes on to say that the SNB will provide liquidity to Credit Suisse if it becomes necessary. The bank's market value and debt securities have been particularly affected by recent market reactions, prompting the authorities to offer support if needed.

It is worth noting that the weaknesses in Credit Suisse's financial reporting were announced by the bank's CEO, Ulrich Körner. He also stated that the bank was taking a very cautious approach to local interest rate increases, which may have contributed to its underwhelming financial results for 2022.

The situation at Credit Suisse has had a ripple effect on other major European banks, with shares in BNP Paribas, Société Générale, Commezbank, Bank of Ireland, Deutsche Bank, UBS, ING, and other institutions falling during the trading day. The Bank of Saudi Arabia, which holds 9.8% of Credit Suisse's shares, has also indicated that it will not support the bank during this crisis.

The European Central Bank has also been in contact with banks under its supervision to determine whether they have any exposure to Credit Suisse. The bank's troubles are clearly having an impact beyond its own walls.

In these challenging times, it is reassuring to see that the authorities are taking proactive steps to address the situation and ensure financial stability. The SNB's commitment to providing liquidity to Credit Suisse if necessary is a clear signal that they are prepared to support the sector as needed. Nevertheless, the ongoing situation at Credit Suisse highlights the importance of strong financial controls and transparency in the banking sector.