Global banking crisis: One big problem down, too many others left to go
2 years ago

Global banking crisis: One big problem down, too many others left to go

CNN  

New York CNN — After a major, systemically significant bank crumbled over the weekend, the banking crisis left financial institutions and regulators scrambling Monday to prevent its spread. Banks borrowed a record $153 billion from the Fed’s discount window last week – a last-resort option for banks to gain quick access to cash. None of the banks that borrowed from the Fed’s discount window borrowed on secondary credit terms – emergency, overnight loans that help deeply troubled banks keep the lights on. The fact that the loans the Fed delivered were primary credit “indicates that US bank supervisors consider the banks that needed emergency support ‘healthy’ and not at elevated risk of imminent failure,” noted Jill Cetina, Moody’s analyst, in a note to investors Friday. But after UBS came to the rescue of Credit Suisse, the flood of deposit withdrawals from US regional banks eased and central banks tried to make dollars more available to keep banks lending, there’s hope the current banking crisis fades and the world evades an economic downturn.

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History of this topic

Ex-Credit Suisse Bankers Use Niche Funds to Target Debt Swaps
2 months, 1 week ago

Ex-Credit Suisse Bankers Use Niche Funds to Target Debt Swaps

Live Mint  

-- In a small but lucrative corner of the market for structured credit products, boutique funds run by former Credit Suisse executives are making rapid inroads. Issa said that after holding senior structured credit positions at both Credit Suisse and UBS Group AG, his new setup at Enosis allows his small team to operate in ways that can be “more …

Switzerland lays out new ‘too big to fail’ rules in wake of Credit Suisse banking turmoil last year
11 months, 2 weeks ago

Switzerland lays out new ‘too big to fail’ rules in wake of Credit Suisse banking turmoil last year

Associated Press  

GENEVA — The Swiss government Wednesday announced steps to bolster its “too big to fail” rules aimed at avoiding potentially disastrous fallout from banking sector turmoil after woes last year at Credit Suisse before it was taken over by rival UBS. Finance Minister Karin Keller-Sutter told reporters that the measures will aim to protect taxpayers — who were briefly on …

If One Megabank Collapses, the US Economy Goes With It. Should We Have More?
1 year ago

If One Megabank Collapses, the US Economy Goes With It. Should We Have More?

Politico  

And the government has so far taken a more or less incoherent position on what it would like the banking system to look like in another 15 years. “You need to have a view of where the industry is headed in order to come up with wise decisions on blocking or permitting a particular merger,” said Daniel Tarullo, who wrote …

How to protect YOUR cash from banking Armageddon: Shark Tank star Kevin O'Leary warns THOUSANDS more 'radioactive' regional banks could fail like SVB - you'll be amazed how simple it is to be safe
1 year, 1 month ago

How to protect YOUR cash from banking Armageddon: Shark Tank star Kevin O'Leary warns THOUSANDS more 'radioactive' regional banks could fail like SVB - you'll be amazed how simple it is to be safe

Daily Mail  

Regional banks are doomed. BEWARE THE COMING REAL ESTATE IMPLOSION New York Community Bancorp made more headlines this week after reporting a surprise loss of $252 million on its commercial real estate loan portfolio in the fourth quarter of 2023 alone. Considering that small firms reportedly hold nearly 70 percent of $2.7 trillion in outstanding commercial real estate loans, it's …

How did Credit Suisse collapse?
1 year, 3 months ago

How did Credit Suisse collapse?

Live Mint  

About six months before Credit Suisse was sold to rival UBS in a weekend rescue, the head of the Swiss central bank wanted to inject 50 billion Swiss francs into the lender and nationalise it, according to three sources with direct knowledge of the matter. But Switzerland's financial regulator FINMA and the finance ministry opposed the idea, as did Credit …

Swiss central bank urges review of ‘too big to fail’ bank safeguards after Credit Suisse debacle
1 year, 9 months ago

Swiss central bank urges review of ‘too big to fail’ bank safeguards after Credit Suisse debacle

Associated Press  

FRANKFURT, Germany — Switzerland’s central bank said the government and regulators should carry out an in-depth review of rules aimed at preventing disastrous bank collapses, saying key guardrails failed to prevent Credit Suisse from needing to be rescued by Swiss competitor UBS. “Looking forward, the experience with Credit Suisse shows the need for a review of the TBTF framework in …

The banking crisis isn’t over. But how bad will it get?
1 year, 10 months ago

The banking crisis isn’t over. But how bad will it get?

Associated Press  

NEW YORK — Uncertainty continues to pummel the banking industry, despite assurances from financial regulators and bankers such as Jamie Dimon this week that the worst of the recent crisis is over and the health of the banking system remains strong. A renewed sell-off Thursday focused on PacWest Bancorp and Western Alliance Bancorp, two smaller regional banks whose shares have …

Banking crisis: Why markets are still freaking out about banks
1 year, 10 months ago

Banking crisis: Why markets are still freaking out about banks

CNN  

Editor’s Note: A version of this story appeared in CNN Business’ Nightcap newsletter. New York CNN — A summary of where things stand in the banking crisis: The Fed: “Banks are fine.” The Treasury: “Banks are fine.” The banks: “We’re fine.” Wall Street: “Everybody sell, the banks are on fire!” Here’s the deal: When Silicon Valley Bank crumbled on March …

British banks to give first financial updates since global banking crisis fears
1 year, 11 months ago

British banks to give first financial updates since global banking crisis fears

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Britain’s biggest banks are preparing …

ECONOMIC PERSPECTIVES | World Bank-IMF plans to resolve global economic crises a road map to limbo
1 year, 11 months ago

ECONOMIC PERSPECTIVES | World Bank-IMF plans to resolve global economic crises a road map to limbo

The Hindu  

Published : Apr 20, 2023 11:00 IST - 9 MINS READ In the run-up to the annual Spring Meetings of the World Bank and the IMF in the second week of April, there was much talk that the two organisations were on the cusp of change. Confronted by the realisation that they are not up to the tasks set by …

How the failure of Silicon Valley Bank might have affected the entire financial system
1 year, 11 months ago

How the failure of Silicon Valley Bank might have affected the entire financial system

Firstpost  

Research suggests that a run-on deposits at Silicon Valley Bank and Signature Bank could have set off a cascading series of bank failures, crippling small businesses and economic activity across wide parts of the country Washington: The federal government’s rescue of two failed banks last month has drawn criticism from some lawmakers and investors, who accuse the Biden administration and …

Profits at big US banks show few signs of industry distress
1 year, 11 months ago

Profits at big US banks show few signs of industry distress

Associated Press  

NEW YORK — The nation’s largest banks appear to be weathering the current turmoil in their industry just fine. Despite a pair of historical failures last month that put the nation’s banking industry into crisis mode, the nation’s biggest banks posted strong profits last quarter, helped by higher interest rates and a U.S. economy that keeps growing and adding jobs …

Profits at big US banks show few signs of industry distress
1 year, 11 months ago

Profits at big US banks show few signs of industry distress

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Despite a pair of historical …

Swiss lawmakers pick apart Credit Suisse woes ahead of deal
1 year, 11 months ago

Swiss lawmakers pick apart Credit Suisse woes ahead of deal

Associated Press  

GENEVA — Switzerland’s parliament opened a special session Tuesday to scrutinize the state-imposed takeover of Swiss bank Credit Suisse by rival UBS — and consider strengthening the legal arsenal to better gird against financial blowups. Johanna Gapany, a centrist lawmaker and rapporteur for the upper chamber’s finance commission, said the parliamentary panel had made three main proposals: change competition rules …

Swiss lawmakers pick apart Credit Suisse woes ahead of deal
1 year, 11 months ago

Swiss lawmakers pick apart Credit Suisse woes ahead of deal

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Switzerland’s parliament is opening a …

’Banking crisis not over,’ JPMorgan CEO on possibility of ’2008’ like recession
1 year, 11 months ago

’Banking crisis not over,’ JPMorgan CEO on possibility of ’2008’ like recession

Live Mint  

In a recent letter to shareholders, JPMorgan Chase & Co CEO Jamie Dimon expressed his concerns about the ongoing U.S. banking crisis and its potential long-term effects. "The current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come," Dimon wrote Storm clouds are still threatening the economy …

Credit Suisse chairman says ’sorry’ for bank failure, ’Only two options left...’
1 year, 11 months ago

Credit Suisse chairman says ’sorry’ for bank failure, ’Only two options left...’

Live Mint  

Credit Suisse's chairman apologised for taking the Swiss bank to the brink of bankruptcy, as he faced shareholder fury, reported Reuters. The bank's chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief "until the beginning of the fateful week" that the it could survive. “I apologise that we …

‘Silicon Valley Bank collapse fastest since Barings’ – Bank of England chief
2 years ago

‘Silicon Valley Bank collapse fastest since Barings’ – Bank of England chief

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The collapse of Silicon Valley …

When Is a Global Economic Meltdown Expected? Five Financial Experts Lay It Down
2 years ago

When Is a Global Economic Meltdown Expected? Five Financial Experts Lay It Down

The Quint  

Silicon Valley Bank failure, and the massive contagion it sparked, look like a classic banking run. The response from the US Treasury and the US Federal Reserve—which applied nineteenth-century British economist Walter Bagehot’s principle that, to stem panic, a lender of last resort is needed—also looks quite familiar. First, in 2008, the worry about collapse was so intense that a …

TIMELINE: Know all about the global banking crisis in 10 points
2 years ago

TIMELINE: Know all about the global banking crisis in 10 points

Firstpost  

New Delhi: In mere 10 days, banks and financial institutions across the globe went through a massive negative transition due to the global banking crisis which is considered to be the biggest since 2008. Here’s global banking crisis in 10 points: Timeline of global banking crisis: 1 - Silvergate Capital Corp, a crypto-friendly bank, on 8 March said it would …

Banking turmoil has potential to trigger financial crisis, warns ANZ Banking Group CEO
2 years ago

Banking turmoil has potential to trigger financial crisis, warns ANZ Banking Group CEO

Firstpost  

London: Australia and New Zealand Banking Group’s CEO said on Monday the latest turmoil in the global banking system had the potential to trigger a financial crisis though it was early to predict it could bring one similar to that in 2008. But he said it was premature to assume the current condition could result in “another GFC”, referring to …

Number theory: Understanding the new American banking crisis
2 years ago

Number theory: Understanding the new American banking crisis

Hindustan Times  

After hiking the benchmark interest rate, US Federal Reserve chairman Jerome Powell signalled that they were on the verge of pausing further rate hikes to limit its impact on the ongoing financial turmoil in the banking industry. Bank failures have become a rather common phenomenon in America Latest data from the Federal Deposit Insurance Corporation shows that 563 banks have …

UBS and Credit Suisse merger: Why it might not lead to Swiss bliss
2 years ago

UBS and Credit Suisse merger: Why it might not lead to Swiss bliss

Firstpost  

Geneva: The marriage of UBS and Credit Suisse was hastily arranged to prevent a global financial meltdown — but the size of the resulting megabank could cause domestic problems in Switzerland, the central bank admitted Thursday. The Swiss National Bank, which played matchmaker in Sunday’s takeover of Credit Suisse, said the formation of one giant bank in Switzerland would create …

New chapter of capitalism emerges from the banking crisis
2 years ago

New chapter of capitalism emerges from the banking crisis

Deccan Chronicle  

There are few better places to consider the past few days of banking chaos than a small room hidden away in Edinburgh’s financial district — not far from where the godfather of free markets, Adam Smith, once lived. Old newspapers proclaim government bailouts of long ago while the shelves groan with tomes like “Where Are the Customers’ Yachts?” The library …

Banking system ‘safe’ says Downing Street – but job losses loom at Credit Suisse
2 years ago

Banking system ‘safe’ says Downing Street – but job losses loom at Credit Suisse

The Independent  

Britain’s banking system remains “safe”, Downing Street insisted on Monday amid turmoil on the FTSE100 following the emergency rescue deal for Credit Suisse. Credit Suisse employs around 5,500 people in the UK, based in London’s Canary Wharf, which includes investment bankers, wealth and asset managers, as well as staff across teams such as technology, risk and compliance. The former chief …

Inside story of how and why Credit Suisse went down
2 years ago

Inside story of how and why Credit Suisse went down

Firstpost  

Zurich: Days before a hastily convened press conference late on Sunday that would make the world’s front pages, Switzerland’s political elite were secretly preparing a move that would jolt the globe. While the nation’s central bank and financial regulator publicly declared that Credit Suisse was sound, behind closed doors the race was on to rescue the nation’s second-biggest bank. A …

Credit Suisse and SVB: Is global banking in crisis?
2 years ago

Credit Suisse and SVB: Is global banking in crisis?

Al Jazeera  

Global banking has been in turmoil over the last two weeks following a series of stunning bank collapses in Europe and the United States. While US regulators hoped to shore up confidence by guaranteeing deposits at SVB and crypto-focused Signature Bank earlier this month, the collapse of Credit Suisse over the weekend reignited fears of contagion across the financial sector. …

Will the Credit Suisse bank takeover calm financial fears?
2 years ago

Will the Credit Suisse bank takeover calm financial fears?

Associated Press  

FRANKFURT, Germany — In a bid to ease turmoil in the world financial system, Swiss authorities engineered a plan for the UBS bank to acquire its troubled smaller rival Credit Suisse at a marked-down price. It’s another urgent attempt to fight fears that have put the financial world on edge 15 years after the failure of U.S. investment bank Lehman …

Credit Suisse: What does the takeover mean for UK banks and is your money safe?
2 years ago

Credit Suisse: What does the takeover mean for UK banks and is your money safe?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Anxieties over the security of …

Explained: Why did UBS acquire Credit Suisse for nearly $3.25 billion? How does this affect the bank’s future?
2 years ago

Explained: Why did UBS acquire Credit Suisse for nearly $3.25 billion? How does this affect the bank’s future?

Firstpost  

Last week, the global banking world was rocked when stocks of Credit Suisse, the 167-year-old institution, fell to record lows and creating panic the world over. Now after a turbulent week, Switzerland’s largest bank, UBS, has agreed to buy longtime rival Credit Suisse for about $3.25 billion after emergency talks were held between the two banks and the country’s financial …

World's central banks rally to prevent banking crisis spreading after UBS takes over embattled Credit Suisse
2 years ago

World's central banks rally to prevent banking crisis spreading after UBS takes over embattled Credit Suisse

ABC  

Some of the world's largest central banks have come together to stop a banking crisis from spreading, in the wake of Swiss authorities persuading multinational investment bank UBS to buy beleaguered rival Credit Suisse in a historic deal. Key points: Credit Suisse was caught up in global banking turmoil following the collapse of Silicon Valley Bank and Signature Bank The …

Risky business: What next for a troubled banking world after the collapse of two US banks?
2 years ago

Risky business: What next for a troubled banking world after the collapse of two US banks?

ABC  

The doomsday calls have been coming thick and fast during the past fortnight, replete with predictions of a global financial crisis re-run. And while the European Central Bank shrugged aside the warnings and pushed ahead with a super-sized rate rise last Thursday — for fear of appearing concerned about the week's events — there'll be plenty of questions in central …

The global banking turmoil explained; what’s happening at SVB, Credit Suisse
2 years ago

The global banking turmoil explained; what’s happening at SVB, Credit Suisse

Live Mint  

It all started on 10 March, 2023 after Startup-focused lender SVB Financial Group became the largest bank failure since the financial crisis, in a sudden collapse that roiled global markets and stranded billions of dollars belonging to companies and investors. At least four major banks, including Societe Generale and Deutsche Bank, are restricting new trades involving Credit Suisse or its …

Keeping your money safe amid bank failures
2 years ago

Keeping your money safe amid bank failures

LA Times  

President Biden is telling Americans that the nation’s financial systems are sound. After too many depositors tried to withdraw their money from Silicon Valley Bank in Santa Clara, Calif. — that’s known as a bank run — regulators took over the bank on March 10. Here’s what you need to know: Business Everything to know about Silicon Valley Bank’s spectacular …

Bank trouble: Where First Republic, Credit Suisse, and others stand following the Silicon Valley Bank debacle.
2 years ago

Bank trouble: Where First Republic, Credit Suisse, and others stand following the Silicon Valley Bank debacle.

Slate  

The Silicon Valley Bank saga ain’t over yet. First Republic According to Bloomberg, the San Francisco–based First Republic Bank has had its “worst week ever,” despite outside players’ keen interest in holding the $212 billion institution aloft. Investors still have concerns over Schwab, especially since its customers are rearranging their investments within the bank’s portfolio toward “safer” government-backed investments; the …

Why is Credit Suisse in trouble? The banking turmoil explained
2 years ago

Why is Credit Suisse in trouble? The banking turmoil explained

Live Mint  

Stress in the U.S. banking system jumped across the Atlantic this week, sparking turmoil for embattled Swiss bank Credit Suisse. Within hours, Credit Suisse said it would tap a more than $50 billion lifeline from the Swiss National Bank. It was likely intended as a show of force to investors who shorted Credit Suisse’s stock or sold credit-default swaps insuring …

How worried should we be about bank collapse contagion?
2 years ago

How worried should we be about bank collapse contagion?

The Independent  

The best of Voices delivered to your inbox every week - from controversial columns to expert analysis Sign up for our free weekly Voices newsletter for expert opinion and columns Sign up to our free weekly Voices newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. So, in rapid fashion, we’ve seen …

What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast
2 years ago

What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast

The Hindu  

Last week, California-based Silicon Valley Bank, the 16th largest bank in the United States, collapsed, sending shock waves through the start-up universe. The Biden administration has announced that all the depositors’ savings in the Silicon Valley Bank will be protected, including those deposits over and above the sums that are insured. The Federal Reserve, on its part, has unveiled a …

Live updates: Credit Suisse deal, First Republic, global stock market news
2 years ago

Live updates: Credit Suisse deal, First Republic, global stock market news

CNN  

The Federal Reserve loaned out $12 billion to banks this week from its new emergency lending facility, the Bank Term Lending Program, the Fed reported Thursday. The new program was designed to prevent banks from failing like Silicon Valley Bank last week and Signature Bank on Sunday. The Fed will lend the banks the original value of their Treasury bonds, …

Credit Suisse and SVB banking crises are 'not a repeat of 2008'
2 years ago

Credit Suisse and SVB banking crises are 'not a repeat of 2008'

ABC  

Just days after Silicon Valley Bank's collapse amid a run on deposits sparked fears of a US banking crisis, a sudden share price crash for European investment banking giant Credit Suisse has ramped up fears of a wider financial emergency. Credit Suisse and SVB two very different banking crises In fact, Dr Stevenson said it is likely the financial problems …

What caused the global banking crisis this week and will it lead to a recession?
2 years ago

What caused the global banking crisis this week and will it lead to a recession?

CNN  

London CNN — On March 10, the biggest failure of a US bank since the global financial crisis was playing out in real time as a major lender to the tech industry succumbed to a classic bank run. A week on, a second US regional bank — Signature Bank — has been shut down, a third — First Republic Bank …

Credit Suisse share collapse triggers fears of fresh banking crisis
2 years ago

Credit Suisse share collapse triggers fears of fresh banking crisis

The Independent  

Fears the global economy might be hit by a fresh banking crisis wiped billions of pounds off the value of top firms on Wednesday during growing uncertainty over the future of troubled Credit Suisse. The US Treasury said it is monitoring the Credit Suisse situation “and has been in touch with global counterparts” after the firm’s shares were suspended. Andrew …

Credit Suisse shares soar after central bank offers lifeline
2 years ago

Credit Suisse shares soar after central bank offers lifeline

Associated Press  

GENEVA — Credit Suisse shares surged Thursday after the Swiss central bank agreed to loan the bank up to 50 billion francs to bolster confidence in the country’s second-biggest lender following the collapse of two U.S. banks. The Swiss National Bank said Wednesday that it was prepared to back Credit Suisse because it meets the higher financial requirements imposed on …

Credit Suisse crisis: Does India have reasons to worry?
2 years ago

Credit Suisse crisis: Does India have reasons to worry?

Firstpost  

There is more panic in the banking world, as Credit Suisse shares plummeted on Wednesday. At one point, Credit Suisse shares lost more than a quarter of their value, hitting a record low after the bank’s biggest shareholder — the Saudi National Bank — told news outlets that it would not put more money into the Swiss lender, which was …

Credit Suisse crisis bigger worry for India than Silicon Valley Bank: Report
2 years ago

Credit Suisse crisis bigger worry for India than Silicon Valley Bank: Report

Hindustan Times  

The fate of European lender Credit Suisse Group AG is of greater importance to the Indian banking sector than the collapse of Silicon Valley Bank, according to Jefferies India. “Given the relevance of Credit Suisse to India’s banking sector, we see softer adjustments in assessment of counter-party risks, especially in the derivative market,” analyst Prakhar Sharma writes in a note. …

Credit Suisse erupts into full-blown crisis as rivals back away
2 years ago

Credit Suisse erupts into full-blown crisis as rivals back away

Live Mint  

The long-brewing troubles at Credit Suisse Group AG exploded into a full-blown crisis Wednesday as its stock and bonds cratered and some of the world’s biggest banks raced to shield their finances from the potential fallout. “People are looking for any way possible to get protection.” Wednesday’s panic was sparked by a statement from Credit Suisse’s biggest shareholder, the Saudi …

'The market is telling us something very bad is coming', as global banking crisis deepens
2 years ago

'The market is telling us something very bad is coming', as global banking crisis deepens

ABC  

We now have an international banking crisis. That means Silicon Valley Bank was given free rein to invest billions of dollars of its own deposits into US Treasuries without any kind of "insurance" in place to protect customers' money if the markets moved against the bank. The Reserve Bank told the ABC that "Subsequent to the CFR meeting on 10 …

Justice Dept, SEC probing collapse of Silicon Valley Bank
2 years ago

Justice Dept, SEC probing collapse of Silicon Valley Bank

Associated Press  

The Justice Department and the Securities and Exchange Commission have launched investigations into the collapse of Silicon Valley Bank, two people familiar with the matter told The Associated Press on Wednesday. The collapse of Silicon Valley Bank on Friday — the largest bank failure since the financial crisis of 2008 — and Signature Bank two days later have rattled markets …

FTSE 100: London stock market suffers worst one-day performance since start of Covid pandemic
2 years ago

FTSE 100: London stock market suffers worst one-day performance since start of Covid pandemic

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Investors were shaken by the collapse of Silicon Valley …

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