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Credit Suisse Thrown $54 Billion Lifeline In Rush To Ward Off Global Bank Crisis

March 16 (Reuters) – Credit Suisse (CSGN.S) said on Thursday it would borrow up to $54 billion from Switzerland’s central bank to shore up liquidity and investor confidence, after a slump in its shares had intensified fears about a global banking crisis.

The bank’s announcement, which came in the middle of the night in Zurich, prompted a 24% rise in Credit Suisse shares and helped reverse some of the heavy losses on stock markets driven by investor fears over potential bank runs across the world.

Full coverage: REUTERS

Analysis: For Goldman Sachs, SVB’s Botched Stock Sale Had A Silver Lining

NEW YORK, March 16 (Reuters) – As SVB Financial Group (SIVB.O) wrestled with a capital shortfall and the prospect of a downgrade to its credit rating last week, it went to Goldman Sachs Group Inc (GS.N) and worked out an unusual two-part plan, according to people familiar with the discussions.

The investment bank would buy a $21.5 billion bond portfolio from SVB to boost its coffers, after startups began pulling their deposits from the technology-focused lender, which does business as Silicon Valley Bank.

Full coverage: REUTERS

Credit Suisse Shares Leap In Delicate Truce With Doubters

ZURICH/LONDON, March 16 (Reuters) – Credit Suisse shares (CSGN.S) jumped around 18% on Thursday after the company secured a lifeline from the Swiss central bank to shore up investor confidence, reversing some of the losses that stripped off a quarter of its market value the day before.

The Swiss bank’s announcement that it would make use of a $54-billion loan from the Swiss National Bank helped stem heavy selling in financial markets in Asia on Thursday and prompted a modest rally in European equities.

Full coverage: REUTERS

ECB Rate Hike Plans Clouded By Banking Turmoil

FRANKFURT, March 16 (Reuters) – European Central Bank policymakers are meeting on Thursday amid exceptional turmoil in financial markets that could force it to ditch plans for another hefty interest rate hike as fears of a fresh financial crisis crowd out inflation worries.

Having raised interest rates since July at its fastest pace on record to curb inflation, the ECB had effectively promised another 50 basis point (bps) increase for Thursday and signalled further moves in the months ahead.

Full coverage: REUTERS

Morning Bid: ECB Into The Eye Of Banking Storm

A look at the day ahead in European and global markets from Tom Westbrook

The European Central Bank (ECB) meets today for the first big test of policymakers’ response to bank stability fears that are sweeping the globe.

In Asia the brakes came on a rout in bank shares after Credit Suisse’s (CSGN.S) late-night announcement of plans to borrow as much as 50 billion francs ($54 billion) from the Swiss National Bank.

Full coverage: REUTERS

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Industry Dynamics

UK Inflation Rate Unexpectedly Rises To 10.4% In February

LONDON, March 22 (Reuters) – British inflation unexpectedly rose to 10.4% in February, pushed up by higher food prices and pricier drinks in pubs and restaurants, official data showed on Wednesday, a day before the Bank of England announces its latest interest rate decision. Economists polled by Reuters had forecast that the annual CPI rate […]

2023-3-22 | Industry Dynamics

Dollar Pauses, Sterling Drops Ahead Of Fed, BoE

LONDON/SINGAPORE, March 21 (Reuters) – The dollar steadied and sterling fell on Tuesday as traders reckoned banking stress would keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week. Investors remained concerned over the fate of the banking sector after U.S. lender First Republic shares tumbled […]

2023-3-21 | Industry Dynamics

Analysis: UBS Swallows Doomed Credit Suisse, Casting Shadow Over Switzerland

LONDON, March 20 (Reuters) – UBS Group (UBSG.S) emerged as Switzerland’s one and only global bank with a state-backed rescue of its smaller peer Credit Suisse, a risky bet that makes the Swiss economy more dependent on a single lender. The unprecedented move announced late on Sunday in Zurich capped a race against time by regulators to avert a […]

2023-3-20 | Industry Dynamics