Dramatic day in the markets and The night that promises to be long and energetic. The specter of giant bankruptcy Credit Suisse Makes California’s bankruptcy look small Silicon Valley Bank few days ago. The Swiss institute managed to lose more than 30% on the Zurich stock exchange, crossing the threshold of two francs per share downward, to close the session down -24%. The sales began in the middle of the morning after the bank’s top Saudi shareholders said they were willing to put more money into the organisation. the Credit default swap (Products that allow you to insure against bankruptcy but are often used for purely speculative purposes) at Credit Suisse is approaching the critical limit of thousand points, This indicates that there is a significant risk to the group’s business continuity. In particular, one-year certificates rose to 835.9 basis points, according to the Cmaq platform, an all-time high, and equal to 18 times the comparable derivative securities of competitors Ubs and About 9 times that of Deutsche Bank. the dollar bonds Issued by a Swiss bank with a maturity date 2026 In free fall, it is rolled in 68% of the face value.
In the late afternoon, Credit Suisse asked Swiss Central Bank to pronounce Possible willingness to intervene to support the institute. billion It responded in the evening with a press release claiming that the health of Swiss banks is good but saying it is ready to inject liquidity into Credit Suisse if needed: Swiss institutions due to the current turmoil in the US banking sector. Regulations in Switzerland require that all banks maintain adequate capital and liquidity reserves or exceed the minimum requirements of Basel standards. Moreover, the big banks have to systematically meet higher capital and liquidity requirements […] The Swiss National Bank will provide liquidity to the globally active bank if needed.” According to some rumors Swiss government He would have received requests from other European countries to step in to support the credit institution. Meanwhile, the European Central Bank Contact began with European banks to clarify the type and extent from exposure Financial versus the Swiss group. The request relates Also Italian institutes under the direction of Frankfurt. US Treasury He explained that he “monitors the conditions of the Swiss bank and communicates with other authorities and inquires about the exposure of American institutions.” In the evening CEO Ulrich Korner Again, Credit Suisse is a strong bank.
Our CEO, Ulrich Körner, spoke to Channel News Asia to confirm the main points of Credit Suisse’s strategy and the latest developments. “We are a strong bank,” he said. We are a global bank, under Swiss regulations.
CreditSuisse (CreditSuisse) March 15, 2023
The collapse of Credit Suisse plunged all markets. The other Swiss giant, oops, It lost 8.5%. The sectoral index of European banks fell by almost 6%. In Paris The National Bank of Paris Paribas Lost 10%, the competitor Societe General more than 12%. In Frankfurt Commerzbank showed a decline of almost 9% Deutsche Bank Record -9.6%. Spain’s Santander and BBVA lost 5.7% and 10%, respectively. Italian banks are also bad. On theistino from Piazza Avari (- 4.6%), Intesa Sanpaolo sold 6.9% while Unicredit 9%. Bpm Bank left 7.1% on the ground, mps 10%. Meanwhile, A.J Wall Street, First Republic It fell 20% after ratings agency Standard & Poor’s downgraded the institution. We believe it The risk of “deposit flight” is high.reads the note.
More bank closures cannot be ruled out“, He writes Larry Fink, CEO of the giant company Black stoneIn his letter to investors, he explained that the failure of the Silicon Valley bank is an example of “the price we pay for decades of easy money.” “The problem is that Credit Suisse is, by many criteria, too big to fail,” but also “too big to save”The famous economist says: “Too big to save Nouriel Roubini. “Italian banks are solid. The rules of our banking system are different from the American system. ” So the Minister of Economy Giancarlo Giorgetti.
Yields are declining Government bondswith investors moving en masse more secure assets. Those German bunds are more decisive than the Italian bunds. the It is spread between BTPs and Bunds Then expand to 199 points The Italian 10-year rate is 4.09%. a bouquet Instead, Germans pay 2.1%. Euro slips 2% at the exchange rate with the dollar. oil is in sharp decline, brent, The benchmark for European markets lost 6.2 percent to $72.5 a barrel. Gold goes up 1919 dollars an ounce. The European Central Bank meeting is scheduled for tomorrow Which will decide whether to continue or stop the price hike path. Among the factors to be taken into account is also the state of the markets and banks, especially after the Svb case that highlighted the pressure generated by the balance sheets of credit institutions that have large amounts of bonds in their portfolios. The ECB in any case will be geared towards confirming a half percentage point increase.
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