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Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator as part of its rescue merger with UBS , angering bondholders on Sunday.
All sorts of crises have been predicted by financial Cassandras in the aftermath of 2008. In reality, they’re exceedingly rare in markets. And yet, with three US banks down, a fourth teetering and the government-brokered acquisition of a fifth — and much larger — institution in Europe, the comparisons to that episode have become a little harder to ignore.
Federal Reserve and Global Central Banks Act to Shore Up Dollar Access: NYTMar 20, 2023 - 06:00:43 PDT
America’s central bank and its counterparts around the world are rushing to cushion markets against the impact of bank problems.
A banking crisis in a matter of days has emerged to potentially choke off a red-hot economy, raising the odds of a recession that the Federal Reserve has been working to avoid.
The lightning speed at which the banking industry descended into turmoil has shaken global markets and governments, reviving eerie memories of the financial crisis. Like 2008, the effects may be long lasting.
Bills were filed, hearings were planned and blame was cast as Congress reacted this past week to the abrupt failure of two banks .
Borrowing could become tougher, a particular blow to small businesses — and a threat to the recovery’s staying power.
Silicon Valley Bank was a center of gravity in the tech industry. Its bankers understood technology and were eager to support unproven companies.
The failures of Silicon Valley Bank and Signature Bank SBNY -22.87% as well as questions about First Republic Bank’s FRC -32.80% future have cast a sudden pall on the banking sector. An emerging concern is that customers at community and regional banks, worrying that their deposits aren’t safe, might pull their money, putting it into money-market funds or accounts at bigger banks.
It is far easier to hold off political pressures in an era where global interest rate and price pressures are pushing downwards. Not anymore. Those days are over and things are going to get harder for the Fed. The trade-offs it faces next week might only be the start.
Fed Poised to Approve Quarter-Point Rate Hike This Week, Despite Market TurmoilMar 20, 2023 - 05:43:28 PDT
Chairman Jerome Powell and his fellow central bankers will want to signal that it's important to continue the fight to bring down inflation.
FDIC Announces Agreement to Sell Signature Bank Assets to New York Community Bancorp SubsidiaryMar 20, 2023 - 05:42:26 PDT
Flagstar Bank, the subsidiary, will assume substantially all deposits and certain loan portfolios, and all 40 of Signature Bank's former branches.
Elizabeth Warren Says Jerome Powell Has ‘Failed’ as Federal Reserve ChairMar 20, 2023 - 05:41:21 PDT
"I don’t think he should be chairman of the Federal Reserve," the Massachusetts Democrat said in an interview on NBC News' "Meet the Press."
S&P reduced its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. The rating remains on CreditWatch Negative, said S&P.
Investors Say Banking Crisis Far From Over Even After UBS’s Credit Suisse DealMar 20, 2023 - 05:36:30 PDT
The early calm in Asian markets on Monday quickly gave way to fresh jitters about the outlook for the global financial system, and investors and strategists are bracing for further tumult.
Demand for some of the world’s safest securities surged after a government-brokered rescue deal of Credit Suisse Group AG failed to assuage concerns that stress in the banking system could spread.
The case for the Federal Reserve to forgo an interest-rate hike strengthened in the eyes of some central bank watchers following a coordinated global move to ease growing financial strains.
Fed Panics, Announces "Coordinated" Daily US Dollar Swap Lines To Ease Banking CrisisMar 20, 2023 - 05:32:03 PDT
"The market stops panicking when central banks start panicking" In January 2022, just around the time the Fed announced it was launching its most aggressive tightening campaign since Volcker, we warned "remember, every Fed tightening cycle ends in disaster and then, much more Fed easing"
UBS (UBSN SW) is to acquire Credit Suisse (CSGN SW) for a total consideration of CHF 3bln; Credit Suisse’s additional tier 1 capital in the aggregate nominal amount of around CHF 16bln will be written off.
Global Markets-Scramble for Safety Subsides as Markets Digest Credit Suisse RescueMar 20, 2023 - 05:27:31 PDT
Europe's bank shares fought back from an early slump on Monday and a cross-asset scramble for safety looked to have eased, as markets weighed up the implications of the emergency rescue of banking heavyweight Credit Suisse for the financial system. Sunday saw the most dramatic state intervention since the 2008 global financial crisis, with UBS buying Credit Suisse for 3 billion...