Banks, inflation, recession, gold AND Ocado: Five lessons the markets taught us this week March 31, 2023 It’s spring. The days are longer, the sun is shining, and fears about the imminent implosion of the global financial system are fading, for now anyway. Markets appeared to calm down after several weeks of banking-related aftershocks and both the FTSE 100 and FTSE 250 were on course to end the week on a positive [...]
Credit Suisse continued enabling tax evasion after 2014 settlement with DoJ, US Senate finds March 29, 2023 Credit Suisse violated a settlement agreement with the US Department of Justice as it continued to help wealthy Americans to avoid paying tax, a Senate investigation has alleged. The probe, which took two years to complete, accused the lender – which will shortly be taken over by UBS – of committing “major violations” following its [...]
UBS re-appoints Sergio Ermotti as CEO saying he’s ‘ideally placed’ to steer through acquisition of Credit Suisse March 29, 2023 UBS has reappointed Sergio Ermotti as chief executive just weeks after the Swiss banking giant acquired its long-time rival Credit Suisse in a $2bn bail out. Emotti, who will replace the outgoing Ralph Hamers, was previously chief executive for nine years up to 2020, directing the bank in the aftermath of the financial crisis. Hamers [...]
Why the Bank of England and Fed could welcome Credit Suisse and Silicon Valley Bank failures March 28, 2023 There’s been reams and reams of wild predictions about whether we’re slipping into another financial crisis, triggered by the collapse of US tech lender Silicon Valley Bank (SVB) and Credit Suisse’s arranged marriage with its crosstown rival UBS. Blackrock chief Larry Fink even warned in his annual letter to shareholders we’re slipping into a slow [...]
Saudi National Bank chair resigns after bank loses $1.2bn in Credit Suisse investment March 27, 2023 Chair of Saudi National Bank (SNB) Ammar Al Khudairy stepped down today after the bank chalked up a $1.2bn loss on its investment in Credit Suisse. SNB said in a statement that Al Khudairy had resigned for “personal reasons” and the current chief executive, Saeed Mohammed Al Ghamdi, will takeover as chair of the lender. [...]
European banks slide as concerns remain over health of financial sector following US bank sell-off March 23, 2023 European banking stocks slid again on Thursday, following a sell-off in the US on Wednesday, as investors remain nervous about the health of the financial sector. European banks were mostly in the red around midday: French banks Socgen and BNP Paribas fell 1.6 per cent, Deutsche Bank slipped 1.5 per cent while Commerzbank fell 3.1 [...]
UBS set to benefit from Credit Suisse deal as dust settles on dramatic acquisition March 22, 2023 Analysts were increasingly convinced that UBS’ acquisition of Credit Suisse had the potential to create long-term value for the newly merged entity. Bank of America’s Alastair Ryan said: “The industrial logic is impeccable: Credit Suisse was the closest competitor to UBS in wealth management and Switzerland; and both banks are heavy in Swiss central costs. [...]
Who’s going loco over Credit Suisse’s cocos? Here are the losers of the AT1 bond write-off March 22, 2023 Bond markets were sent into a spin across Europe this week after the move from Swiss regulator Finma to wipe out $17bn of Credit Suisse’s AT1, or coco, bonds, as part of a rescue deal from its rival UBS.
FTSE 100 close: Credit Suisse turmoil eases as Barclays and NatWest claw back losses March 21, 2023 London’s FTSE 100 today shook off market turmoil sparked by UBS saving Credit Suisse, with the UK’s largest lenders, such as Barclays and NatWest, soaring to the top of the index. The capital’s premier index surged nearly two per cent to 7,536.23 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with [...]
Europe’s banks post strong gains as Janet Yellen is set to signal further support for US banks March 21, 2023 European Bank stocks continued to recover today as US Treasury Secretary Janet Yellen is set to signal further support for regional US lenders. Europe’s largest banks were all firmly in the green around midday. BNP Paribas rose 3.9 per cent, Deutsche Bank was up 5.2 per cent, while UniCredit and Santander climbed 6.3 per cent [...]