• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Saturday, May 31
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

    May 29, 2025

    ‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

    May 29, 2025

    DeSantis Signs Bill Making Gold And Silver Legal Tender

    May 28, 2025

    John Deere Announces $20 Billion Plan To Build Up American Manufacturing

    May 28, 2025

    EV Startup Promised To Cut China Ties — Then Reportedly Shared US Data Anyway

    May 27, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Business»Credit Suisse rescue eases crisis fears, First Republic shares dive
Business

Credit Suisse rescue eases crisis fears, First Republic shares dive

March 21, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

March 20 (Reuters) – Shares of U.S. lender First Republic tumbled nearly 50% on Monday on fears it will need a second rescue to stay afloat, bucking a broader rally in bank shares driven by UBS Group’s state-backed takeover of Credit Suisse.

Less than a week after large U.S. banks pumped $30 billion in deposits into the midsized U.S. lender, investors dumped First Republic on worries that infusion of capital would not be enough. Ratings agency S&P Global also downgraded it deeper into junk status on Sunday, citing liquidity risks.

JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon is leading talks with other big banks on new efforts to stabilize First Republic with a possible investment into the lender, the Wall Street Journal reported, citing people familiar with the matter.

JPMorgan and First Republic declined to comment on the report. A spokesperson for First Republic pointed to an earlier statement where the bank said it was “well-positioned to manage short-term deposit activity”.

The tumult at First Republic, whose shares ended down 47.1%, overshadowed an otherwise positive day for banking stocks globally, led by relief that UBS Group AG’s (UBSG.S) takeover of 167-year-old Credit Suisse Group AG (CSGN.S) would avert a wider banking crisis.

“There (is) more good news than bad news on the banking front,” said Art Hogan, chief market strategist at B. Riley Wealth. “First and foremost, the Credit Suisse, UBS merger certainly takes a lot of stress out of the global banking system.”

The 3 billion Swiss franc ($3.2 billion) deal for the troubled Swiss bank – which was once worth more than $90 billion – was engineered by Swiss regulators and announced on Sunday.

See also  SVB Has a New Owner. First Republic and Other Regional Bank Stocks Rally.

European bank shares (.SX7P) rebounded from recent losses, while on Wall Street the S&P 500 banks (.SPXBK) index recovered 0.6%.

Regional U.S. lenders also rose. PacWest Bancorp (PACW.O) jumped almost 11% after saying deposit outflows had stabilized and its available cash exceeded total uninsured deposits.

Market cap of US regional banks included in the S&P 500 regional bank index

Bonds issued by major European banks fell after some Credit Suisse bondholders were wiped out in the deal. But UBS shares closed up 1.3%, bouncing from a 16% slump triggered by concerns about the long-term benefits of the deal and the outlook for Switzerland, once considered a paragon of sound banking.

A deal on Sunday for a unit of New York Community Bancorp (NYCB.N) to buy deposits and loans from the failed Signature Bank (SBNY.O) also boosted sentiment in U.S. banks. New York Community Bancorp shares surged 32%.

The turmoil that gripped banks over the past week was triggered by the collapse of U.S. midsized lenders Silicon Valley Bank and Signature Bank, quickly ensnaring Credit Suisse as investors fretted about other ticking bombs in the banking system.

The Federal Deposit Insurance Corporation has decided to break up Silicon Valley Bank and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week.

With worries around Credit Suisse easing, attention is now turning to the U.S. Federal Reserve, whose relentless rate hikes to quash inflation were seen as a trigger for the turmoil.

Traders have now increased their bets that the central bank will pause its hiking cycle on Wednesday to try to ensure financial stability, but on the whole remain split over whether the Fed will raise its benchmark policy rate.

See also  Should Beijing Get Credit for Incubating DeepSeek?

[1/2] Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland March 20, 2023. REUTERS/Denis Balibouse

COORDINATED ACTION

Policymakers from Washington to Europe have repeatedly stressed that the current turmoil is different from the global financial crisis 15 years ago, pointing to banks being better capitalised and funds more easily available.

Still, top central banks promised at the weekend to provide dollar liquidity to stabilise the financial system to prevent the banking jitters from snowballing into a bigger crisis.

In a global response not seen since the height of the pandemic, the Fed said it had joined central banks in Canada, Britain, Japan, the euro zone and Switzerland in a co-ordinated action to enhance market liquidity.

Investor focus in Europe shifted to the massive blow some Credit Suisse bondholders will take, prompting euro zone and UK banking supervisors to try to stop a rout in the market for convertible bank bonds.

The regulators said owners of this type of debt would only suffer losses after shareholders have been wiped out – unlike at Credit Suisse, whose main regulators are in Switzerland.

Reuters Graphics

The eleventh-hour Swiss rescue is backed by a massive government guarantee, helping prevent what would have been one of the largest banking collapses since the fall of Lehman Brothers in 2008.

However, the Swiss regulator decided Credit Suisse’s additional tier-1 (AT1) bonds with a notional value of $17 billion will be valued at zero, angering some holders of the debt who thought they would be better protected than shareholders.

See also  Alphabet CEO Pichai reaps over $200 million in 2022 amid cost-cutting

AT1 bonds – a $275 billion sector also known as “contingent convertibles” or “CoCo” bonds – can be converted into equity or written off if a bank’s capital level falls below a certain threshold.

The deal will make UBS Switzerland’s only global bank. It will also make the Swiss economy more dependent on a single lender.

S&P said its outlook on UBS was revised to negative over execution risk but affirmed its ratings.

Reuters Graphics Reuters Graphics

Switzerland’s two biggest political parties sharply criticised the takeover, saying huge state support – which could add up to $280 billion – created enormous risks for the country.

“What has happened is terrible for the credibility of Switzerland,” said Roger Nordmann, leader of the Social Democrats in the Swiss parliament.

“It’s a warning shot for Switzerland about having banks which are just too big.”

($1 = 0.9280 Swiss francs)

Reporting by Medha Singh, Shubham Batra, Amruta Khandekar and Ankika Biswas in Bengaluru; John Revill in Zurich, Stefania Spezzati, Oliver Hirt and John O’Donnell in London, and Noel Randewich in Oakland, California; Additional reporting by Reuters bureaus
Writing by Sam Holmes, Toby Chopra and Deepa Babington
Editing by Nick Zieminski and Matthew Lewis

: .

credit Crisis Dive eases fears Republic Rescue shares Suisse
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025

John Deere Announces $20 Billion Plan To Build Up American Manufacturing

May 28, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

The Story Behind the ‘Sound of Freedom’

July 23, 2023

Toyota suspends sales of Yaris model in Thailand after safety test problem

May 8, 2023

Woke Gaming Giant Activision Blizzard Adds ‘Non-Binary’ Character to ‘Overwatch 2’

November 9, 2023

Judge Orders Kevin Costner’s Estranged Wife Christine Vacate Home by July 31

July 6, 2023
Don't Miss

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

Business May 29, 2025

Consumers’ Research issued a “Woke Alert” on Thursday warning American shoppers that three European companies…

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025

John Deere Announces $20 Billion Plan To Build Up American Manufacturing

May 28, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,136)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,645)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Google Unveils New Tools To Give Users Control Over Personal Data

August 4, 2023

Rural Michigan Town Scores Victory Over CCP-Backed Company Gobbling Up US Farmland

August 14, 2023

Stocks mixed as fresh inflation data shows more pickup: Stock market news today

August 11, 2023
Popular Posts

EXCLUSIVE: ‘The Man She Is Today’: European Companies Accused Of ‘Importing’ Woke Ideology

May 29, 2025

‘The Economy Is On Fire!’: Kevin O’Leary Drops Fact Check On CNN Panelists Railing Against Trump’s Economy

May 29, 2025

DeSantis Signs Bill Making Gold And Silver Legal Tender

May 28, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.