Santander Consumer USA decided yesterday to delay the sale of a $942 million bond backed by subprime auto loans due to uncertainty about the market’s reception. The Federal Reserve announced that it has lent nearly $12 billion to US banks since Sunday, when it said it would provide them with the funds needed to meet withdrawal requests from their customers. The first lawsuit was filed against Credit Suisse after the crash. The appellants argue that the bank did not properly inform the investors about the degree of risk and true financial conditions
In the “day after” markets, equity markets recovered somewhat from yesterday’s sharp declines. After crashing on Wednesday, stocks Credit Suisse stock rose 19%. The Swiss bank will be able to count on liquidity of 50 billion francs Available by the Swiss Central Bank. The timidity with which stocks of other European banks have tried to recover (Unikredit + 2.7%, BNP Paribas + 1.3%) shows how nervous remain high Returning to normal life is not easy. Take control of the day European Central Bank meeting Which decided to keep the bar straight and increase the cost of money in the eurozone by 50 basis points As announced long ago. However, the European Central Bank did not provide indications of further increases in the upcoming meetings, which indicates that the path is not clear and that the series of increases could stop in light of the development of financial conditions.
From Zurich came the news that UBS and Credit Suisse They will be against forced merger by the Swiss authorities and government. Ubs, the leading Swiss bank, would like to continue its independent strategy and would be reluctant to take related risks to the competitor. Which, in turn, would like to continue alone in her home restructuring plan, after buying time thanks to the line of credit made available by the Swiss Central Bank. Meanwhile, it started in the United States The first case is against the Swiss bank after the collapse. The appellants claim that the bank was not properly informed Investors are at risk and real financial conditions. President’s spokeswoman Karen Jean-Pierre He said that the US Treasury Department is in contact with its Swiss counterpart regarding the Credit Suisse bank crisis, but this is a separate issue, unrelated to the current economic and banking environment in the United States.
The US Treasury which is also struggling with the serious difficulties of the crisis First Republic Bank (FRB), The American bank that suffers from a serious crisis of confidence on the part of the markets. giants JPMorgan, Citigroup, Morgan Stanley, Wells Fargo, Bank of America and PNC Financial Services Group They agreed on a plan to deposit $30 billion with FRB, and secure the bank. there Federal Reserve, The US central bank announced that it lent Almost $12 billion to US banks from sunday, When he said he would provide them with the funds to fulfill withdrawal requests from their clients.
in the background roll But hopefully it snowballs Don’t become a slave. But at an already very turbulent point for the US and European financial systems, another red light appears. Santander Consumer USA Yesterday I decided to postpone the sale of bonds worth $942 million High risk auto loans. That is, auto loans granted to debtors with below-average credit ratings. It was decided to freeze the underwriting in the wake of the collapse of Credit Suisse, due to fears that the bonds would remain unsold in the market. Placement is entrusted to the American giant Citigroup. Neither bank declined to comment on the decision.
has crashed The Silicon Valley bank had already been driving investors away from riskier stocks (which provides higher returns), the crisis that erupted in Switzerland reinforced this risk aversion. So interest rates on less safe corporate bonds are going up, and of course that includes these Mortgage-backed securities, a definition that evokes evil memories. Monday car rental company Car Rental It has suspended a similar offering of automatic lease-backed securities of approx 900 million dollars.
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