#CreditSuisse #Market #bailouts #Fiat

Credit Suisse, the second-largest Swiss bank, suffered a dramatic fall in its shares on Friday despite a massive financial bailout announced by the Swiss Central Bank on Wednesday. The bank's shares lost almost 12%, breaking the 1.8 Swiss francs barrier, despite the fact that the Swiss Central Bank had injected nearly $54 billion to bolster the bank's liquidity.

The fall in Credit Suisse shares comes amid a stormy period for banks in the United States, following the collapse of three institutions in less than a week, marking the worst banking crisis since the 2008 financial crisis. The situation has led authorities to take drastic measures to protect deposits, creating uncertainty in global markets.

In London, the FTSE 100 lost 0.29% at midday, while Paris' CAC 40 and Frankfurt's DAX also declined by 0.59% and 0.39%, respectively. In Madrid, the Ibex-35 also recorded losses, falling by 1.39%. In the United States, futures also showed a decline, with the Dow Jones falling by 0.5%, the S&P by 0.52%, and the Nasdaq by 0.11%.

Credit Suisse's turbulent week saw the bank's shares plummet in the stock market. Fears for the banking sector led to the Swiss Central Bank's bailout of $54 billion to strengthen the bank's liquidity.

Despite the turmoil in the financial markets during the week, the public debt market recovered following the European Central Bank's (ECB) message on Thursday. The ECB's Supervisory Board, led by Andrea Enria, met in an extraordinary session to evaluate the situation in the financial markets and the banking sector after the recent turbulence.

"The Supervisory Board meets to exchange views and update members on recent events in the banking sector," said an ECB spokesperson. The banking supervisor's meeting took place just one day after ECB President Christine Lagarde defended the strength of the European banking system and expressed the central bank's readiness to provide liquidity if necessary.

Meanwhile, sources familiar with the matter told Bloomberg that both UBS Group and Credit Suisse Group opposed a potential forced combination of the two entities. UBS would prefer to focus on its independent strategy and would be reluctant to take on risks associated with Credit Suisse.

In the minutes before Wall Street opened, First Republic Bank's shares also recorded sharp losses, despite receiving an injection of $30 billion from 11 other US banks, including the four largest (Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo).

The fall in Credit Suisse's shares and the situation with other banks in the United States have created uncertainty in global markets. The situation highlights the need for banks to be transparent and accountable to restore confidence in the banking sector.

#Fiat #Bank #Market #Bankruptcy

Credit Suisse, a Swiss bank providing investment banking and asset management services since 1856, has recently seen a rise in bankruptcy risk. This development is making investors nervous and leading them to consider how the bank's potential downfall could affect the global market.

Credit Suisse has 50,110 employees worldwide and a market capitalization of $7.5 billion, according to its website and data from Companiesmarketcap. Given the recent bank closures in the US and internal issues at Credit Suisse, the increase in bankruptcy risk has heightened market volatility. Stocks of various banks have declined due to widespread mistrust in the banking system, while assets such as gold and Bitcoin have increased in value as they are perceived as safe havens.

If Credit Suisse were to go bankrupt, it could trigger a financial crisis, according to asset strategist Ven Ram. He stated that "the eurozone economy will fall off a cliff, turn the global financial system upside down, and halt the tightening of major central banks' policies."

To put Credit Suisse's magnitude into perspective, the specialist noted that its assets under management last month were nearly CHF 1.3 trillion, which is equivalent to $1.4 trillion. This amount "would be almost 10% of the €14.5 trillion economy of the euro area," he said.

Credit Suisse is deemed systemically important by the US Financial Stability Board, meaning that it is too big to fail since its collapse could trigger a financial crisis. Thus, regulators might save the bank in the event of bankruptcy. The US government covered the uninsured deposits of banks like Silicon Valley Bank and Signature Bank, as reported by CriptoNoticias, thereby calming investors' and depositors' worst fears and averting a financial crisis. However, it is uncertain how the situation could unfold in Europe.

Investors are waiting to see if interest rates will continue to rise aggressively or not. If they do, the crisis could worsen for the banking industry. For now, however, a bankruptcy is not possible, according to Credit Suisse. The bank has said that its capital and liquidity base "are very strong" and "exceed all regulatory requirements."

Ultimately, the situation remains uncertain, and the market is keeping a watchful eye on developments.