{"id":2370,"date":"2023-03-16T07:02:03","date_gmt":"2023-03-16T12:02:03","guid":{"rendered":"https:\/\/embarrdowns.com\/credit-suisse-group-ag-strengthens-liquidity-amid-banking-crisis\/"},"modified":"2023-03-16T07:02:04","modified_gmt":"2023-03-16T12:02:04","slug":"credit-suisse-group-ag-strengthens-liquidity-amid-banking-crisis","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/credit-suisse-group-ag-strengthens-liquidity-amid-banking-crisis\/","title":{"rendered":"Credit Suisse Group AG Strengthens Liquidity Amid Banking Crisis"},"content":{"rendered":"

Credit Suisse Group AG saw its shares jump 32% in opening trading Thursday after the bank announced it would borrow up to 50 billion Swiss francs (\u00a344bn) and launch an offer to buy back 3bn Swiss francs worth of its debt in order to strengthen its liquidity.[0]<\/a><\/sup> The Swiss National Bank also confirmed that it would provide liquidity to Credit Suisse \u201cagainst sufficient collateral\u201d if necessary.[1]<\/a><\/sup><\/p>\n

The turmoil in the banking sector that has caused volatility on Wall Street was triggered by the failure of Silicon Valley Bank, the second-largest US bank failure ever.[2]<\/a><\/sup> This was followed by the closure of Signature Bank by regulators and the wind down of Silvergate Bank, leading investors to brace for a full-blown crisis in the sector.[3]<\/a><\/sup><\/p>\n

Credit Suisse\u2019s problems are different to those of Silicon Valley Bank, according to Neil Shearing, chief economist at Capital Economics.[4]<\/a><\/sup> He wrote in a note to clients that \u201cthey serve as a reminder that as interest rates rise, vulnerabilities are lurking in the financial system. Key areas to monitor are smaller European banks and shadow banks.<\/p>\n

0. <\/span>“Stock Market Today: Credit Suisse Shares Leap; Dow Futures Edge Down” The Wall Street Journal, 16 Mar. 2023, https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-03-16-2023<\/a><\/a><\/p>\n

1. <\/span>“Credit Suisse shares surge after bank agrees \u00a344bn lifeline \u2013 business live” The Guardian, 16 Mar. 2023, https:\/\/www.theguardian.com\/business\/live\/2023\/mar\/16\/credit-suisse-borrowing-liquidity-swiss-francs-central-bank-ecb-lagarde-jeremy-hunt-business-live<\/a><\/a><\/p>\n

2. <\/span>“Credit Suisse: A Triple Crisis Stock Crash (NYSE:CS)” Seeking Alpha, 15 Mar. 2023, https:\/\/seekingalpha.com\/article\/4587672-credit-suisse-triple-crisis-stock-crash<\/a><\/a><\/p>\n

3. <\/span>“Credit Suisse just the ‘tip of the iceberg’ amid SVB fiasco: JPMorgan” Markets Insider, 15 Mar. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/svb-bank-crisis-credit-suisse-jpmorgan-stock-market-outlook-contagion-2023-3<\/a><\/a><\/p>\n

4. <\/span>“Credit Suisse’s $50 billion lifeline calms panic over banks” CNN, 16 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/16\/investing\/credit-suisse-snb-loan-shares\/index.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Credit Suisse Group AG saw its shares jump 32% in opening trading Thursday after the bank announced it would borrow up to 50 billion Swiss francs (\u00a344bn) and launch an offer to buy back 3bn Swiss francs worth of its debt in order to strengthen its liquidity.[0]<\/a><\/sup> The Swiss National Bank also confirmed that it would provide liquidity to Credit Suisse \u201cagainst sufficient collateral\u201d if necessary.[1]<\/a><\/sup><\/p>\n

The turmoil in the banking sector that has caused volatility on Wall Street was triggered by the failure of Silicon Valley Bank, the second-largest US bank failure ever.[2]<\/a><\/sup> This was followed by the closure of Signature Bank by regulators and the wind down of Silvergate Bank, leading investors to brace for a full-blown crisis in the sector.[3]<\/a><\/sup><\/p>\n

Credit Suisse\u2019s problems are different to those of Silicon Valley Bank, according to Neil Shearing, chief economist at Capital Economics.[4]<\/a><\/sup> He wrote in a note to clients that \u201cthey serve as a reminder that as interest rates rise, vulnerabilities are lurking in the financial system. Key areas to monitor are smaller European banks and shadow banks.<\/p>\n

0. <\/span>“Stock Market Today: Credit Suisse Shares Leap; Dow Futures Edge Down” The Wall Street Journal, 16 Mar. 2023, https:\/\/www.wsj.com\/livecoverage\/stock-market-news-today-03-16-2023<\/a><\/a><\/p>\n

1. <\/span>“Credit Suisse shares surge after bank agrees \u00a344bn lifeline \u2013 business live” The Guardian, 16 Mar. 2023, https:\/\/www.theguardian.com\/business\/live\/2023\/mar\/16\/credit-suisse-borrowing-liquidity-swiss-francs-central-bank-ecb-lagarde-jeremy-hunt-business-live<\/a><\/a><\/p>\n

2. <\/span>“Credit Suisse: A Triple Crisis Stock Crash (NYSE:CS)” Seeking Alpha, 15 Mar. 2023, https:\/\/seekingalpha.com\/article\/4587672-credit-suisse-triple-crisis-stock-crash<\/a><\/a><\/p>\n

3. <\/span>“Credit Suisse just the ‘tip of the iceberg’ amid SVB fiasco: JPMorgan” Markets Insider, 15 Mar. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/svb-bank-crisis-credit-suisse-jpmorgan-stock-market-outlook-contagion-2023-3<\/a><\/a><\/p>\n

4. <\/span>“Credit Suisse’s $50 billion lifeline calms panic over banks” CNN, 16 Mar. 2023, https:\/\/www.cnn.com\/2023\/03\/16\/investing\/credit-suisse-snb-loan-shares\/index.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2369,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2370"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2370"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2370\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2369"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}