There was no thud. After a week of shaking, the European stock exchanges on March 20, when they reopened, passed the first test with fire after news acquisitions Credit Suisse from Ubs, reassured institutions. However, the same cannot be said of the bailed-out, Zurich-listed institute, which has been targeted by outrage and announcing lawsuits by investors after Swiss regulator Finma zeroed in CHF16 billion of “additional level 1” bonds, i.e. those that It participates in absorbing the bank’s losses when the capital ratios fall below a certain threshold. Meanwhile, offshore, J.P. Morgan CEO Jamie Dimon decided to work with 11 other banks to convert to capital in whole or in part from the $30 billion awarded last week to First Republic Bank, which amounted to $70 billion in outflows. . ; Yesterday it fell by 47% on the stock exchange, but Wall Street did not suffer losses: the Dow Jones stopped at +1.2%, the S&P 550 at +0.86%, and the Nasdaq at +0.39%.
If European indices, which started in the red in the morning, rebounded (Milan + 1.5%, Paris + 1.2%, Frankfurt + 1.1%, London + 0.9%), the share of the second largest Swiss bank fell by 55% to 0.82 francs., just above the 0.76 francs that UBS’ competitor would pay to buy it for 3 billion, coincidentally around the market capitalization reached yesterday by Credit Suisse (Credit Suisse shareholders will receive one UBS share for every twenty-two Credit Suisse). Ubs instead closed at +1.3% (17.3 francs), but S&P, while confirming the A- rating, revised its forecast lower from stable to negative. Marriage of convenience will be difficult. The Saudi National Bank – the largest shareholder in Credit Suisse – confirmed a CNBC He incurred a loss of nearly 80% on his investment. Indeed, the Riyadh-based bank owns nearly 10% of Credit Suisse shares, having invested 1.4 billion francs in the second largest Swiss bank in November, the equivalent of 3.82 Swiss francs per share: a far cry from the stock exchange. Ups.
But yesterday’s unrest did not silence Frankfurt or Brussels. We believe that the banking sector in the Eurozone is resilientChristine Lagarde, number one at the European Central Bank, ruled. A spokesman for the European Commission, quoting Commissioner Mered McGuinness, said that the European Commission, for its part, “will continue to closely monitor the state of the banking system, which has been significantly strengthened in recent years.” The Credit Suisse issue and the aftermath of the Silicon Valley bank collapse will be at the center of the European Council scheduled for Thursday and Friday. But the Minister of Economy, Giancarlo Giorgetti, believes that “the repercussions for the Italian banking system are minimal”. According to Bloomberg, Italian financial institutions UniCredit, Banco Bpm, Assicurazioni Generali, Mediobanca, and Banca Generali have no additional Credit Suisse Tier 1 bonds in their portfolios.
However, attention must be directed outside the Old Continent and confirmed by Governor Ignazio Fiesco In Bocconi’s new show Business financing d Republic: “In Europe we have all the tools to deal with liquidity crises” and “we do not discover liquidity and capitalization problems in our banks”. “The European financial system is not directly involved, the problem for us – Visco added – is mainly a problem of contagion risk, because trust is something that cannot be maintained and supervision is well aware of this.” We therefore need to be very wary of “financial developments that have taken place outside the eurozone” which “may have an impact and represent an additional element of uncertainty, even if the economy – the ruler reassured – shows more resilience than he waited”. The reaction of the authorities was “strong and swift”. “We must rest assured that our rules are strong and valid,” Commissioner Paolo Gentiloni said.
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