Posted on 03/15/2023 9:12:58 PM PDT by SeekAndFind
Credit Suisse Group AG said it would borrow up to 50 billion Swiss francs, equivalent to $53.7 billion, from the Swiss central bank to shore up its liquidity, capping a day in which fears about the health of global banks leapfrogged to Europe from North America and the giant lender’s shares dropped as much as 24%.
The bank also said it would repurchase $3 billion worth of senior debt whose value has plunged along with the perceived health of banks on both sides of the Atlantic. The Zurich firm stressed in a press release issued in the evening in New York that it was intent on simplifying its structure and better serving customers.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” CEO Ulrich Koerner said in the release. “My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
Credit Suisse’s plans mark the latest bombshell in a week full of them, as global banks struggle to fend off growing concerns that they and their overseers haven’t sufficiently prepared for a world characterized by high inflation, high interest rates and high investor anxiety.
The announcement came just hours after a dreary trading day concluded with Credit Suisse’s New York traded depositary shares and major U.S. stock indexes paring losses thanks to a statement by the Swiss National Bank that it stood ready to provide the firm with liquidity.
Investor confidence in Credit Suisse crumbled Wednesday, unleashing worries that a banking crisis centered among U.S. regional banks had spread across the Atlantic and was poised to unleash substantial damage to markets and the economy.
(Excerpt) Read more at wsj.com ...
The Swiss National Bank and Finma, the top financial regulator in Switzerland, said Credit Suisse “meets the higher capital and liquidity requirements applicable to systemically important banks.” The regulators didn’t provide details of what type of liquidity they would offer, but said they are in very close contact with the bank.
So much for the Gnomes of Zurich.
Trust the experts. There’s no contagion. Inflation is transitory. Everything is fine in Ohio. Cloth masks stop viruses. Two weeks to flatten the curve.
Nothing to see here. Where is that Leslie Neilsen GIF when I need it?
Overhaul, more control and digital currency to replace all
Keeping the same people=same result. simple math
Paul Erdman an author and US guy running a Swiss bank used to rant on about the Swiss bankers. His best comment was there are two major crimes in Switzerland murder and bank fraud but he did not know which they took more seriously! Unlike here someone at CS will swing for this!
Before getting to the details of the Credit Suisse issue, it is worth taking a bigger geopolitical context to the dynamic. The initial backstop sought by Credit Suisse was from the Saudi National Bank; however, SNB Chairman Ammar Abdul Wahed Al Khudairy refused more lending {LINK}.
This is where we need to keep the BRICS -vs- WEF dynamic in mind and consider that ideologically there is a conflict between the current agenda of the ‘western financial system’ (climate change) and the traditional energy developers. This conflict has been playing out not only in the energy sector, but also the dynamic of support for Russia (an OPEC+ member) against the western sanction regime. Ultimately supporting Russia’s battle against NATO encroachments.
Russia, Saudi Arabia and China are geopolitically aligned in interest against the western financial system. As a consequence, when western banks find themselves in need of capital and cash, there is a layered geopolitical dynamic in the background to Saudi refusal that must be considered.
With multiple western banks now in trouble, Credit Suisse is also exposed, and, like U.S. Treasury/Fed intervention in America, the Swiss central bank has stepped in to backstop the looming collapse.
In the big picture we are seeing the ramifications of the ‘Build Back Better‘ agenda impacting the banking and finance sector which spearheaded it. I am not seeing this discussed anywhere, as the western governments of the collapsing banks are being forced to intervene.
(Reuters) – Credit Suisse on Thursday said it was taking “decisive action” to strengthen its liquidity by borrowing up to $54 billion from the Swiss central bank after a slump in its shares intensified fears about a broader bank deposit crisis.
The Swiss bank’s problems have shifted the focus for investors and regulators from the United States to Europe, where Credit Suisse led a selloff in bank shares after its largest investor said it could not provide more financial assistance because of regulatory constraints.
Regulators in the private banking hub on Wednesday had sought to ease investor fears around Credit Suisse, which added to broader worries sparked by last week’s collapse of Silicon Valley Bank and Signature Bank, two U.S. mid-size firms.
Asian stocks had extended Wall Street’s tumble on Thursday and investors bought gold, bonds and the dollar, leaving markets on edge ahead of a European Central Bank meeting later in the day. The bank’s announcement in the early European morning helped trim some of those losses though trade was volatile. (read more)
Again, I go back to the geopolitical map. The yellow nations with sanctions against Russia are also the yellow nations driving the ‘Build Back Better’ climate change energy policy. The grey nations are not in alignment with either dynamic. It is not a coincidence the banking issues are all within the yellow nations.
(Via Daily Mail) Wall Street’s main stock indexes opened lower on Wednesday, as turmoil at Credit Suisse renewed fears of a banking crisis and sent shares of major US banks lower.
At the opening bell, the Dow Jones Industrial Average fell 396 points, or 1.23 percent, while the S&P 500 opened 1.09 percent lower and the Nasdaq Composite dropped 1.20 percent.
Shares of First Republic, one of the regional banks swept up in contagion fears after the collapse of Silicon Valley Bank, dropped up to 11 percent after the bank’s bond rating was downgraded to junk status by S&P.
In Europe, shares of Credit Suisse plunged more than 25 percent, hitting a new record low for the second day in a row, after the Swiss bank’s largest investor said it could not provide more financial assistance to the lender.
The Big Four trillion-dollar US banks suffered in early trading after yesterday’s rally. Wells Fargo slid 3.9 percent, Citigroup dropped 4.3 percent, Bank of America was down 2.2 percent and JP Morgan saw a 3.5 percent dip.
After the collapse of SVB Financial and Signature Bank, emergency measures by US authorities had soothed some worries about the health of the other banks, helping regional lenders stage a rebound in Tuesday’s session.
However, regional banks were giving back their gains in early trading Wednesday, with shares of First Republic, PacWest and Western Alliance all down between 2.7 percent and 11 percent.
[…] Driving investor sentiment was turmoil at Credit Suisse, after its biggest shareholder – the Saudi National Bank – said that it would not inject more money into the ailing Swiss bank.
Saudi National Bank chairman Ammar Al Khudairy told Reuters: ‘We cannot [buy more shares] because we would go above 10 percent. It’s a regulatory issue.’
The Saudi bank holds a 9.88 percent stake in Credit Suisse, according to Refinitiv data. (read more)
Meanwhile in North America, Mexican President Andres Manuel Lopez-Obrador has said he was not willing to join the energy suicide pact pushed by Joe Biden and Justin Trudeau…. A policy break in the trilateral relationship which suddenly, and not coincidentally, aligns with the timing to make Mexico a pariah to the U.S. vis-a-vis a renewed media push on the drug cartel narrative.
The raising of interest rates is now hitting the national and multinational banks impacted by government policy that was following WEF orders. Now the western politicians are stepping in with the government controlled central banks to backstop the national banks and multinationals. Can you see the dynamic?
Team yellow is suffering the consequences of their own ideological policy as enacted. Team grey is not going to help team yellow get out of a crisis team yellow created, which was intended to hurt team grey.
…. And we continue watching.
Anyone who cheers for the BRICS is more than free to leave the US and move there.
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looks like banks across the globe have fallen into the Biden Trap©, namely having invested depositor monies into massive amounts of near-zero interest-bearing securities during the time Biden gave away trillions of dollars for free, but now the value of the securities are way underwater because the Federal Reserve tried to halt the runaway inflation caused by the trillions of free dollars by rapidly raising interest rates, thus devaluing all interest-bearing securities ...
The snowball is already rolling.
The “solution” to banking problems these days is like giving more heroin to a dope addict who ran out of cash.
Everything feels great for a while...
You do know the leaders of the US hate your guts, right?
My country is still better than the sh-itholes of China and Russia. Take your anti-American and anti-western reiterations to someone else.
Your country may be great but the leaders are batty traitors.
If you support the policies of your leaders than you are supporting the enemies of the country.
Attacking your fellow citizens misses the point.
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