#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.