The Swiss decision has led some Credit Suisse AT1 bondholders to consider legal action and has created uncertainty for bondholders around the world. “We wanted to make it very clear to investors, to avoid being misunderstood: we have no choice but to respect this hierarchy,” the chairman of the EU’s Single Resolution Board told CNBC. … Read more
Bloomberg News reported on Saturday that U.S. officials are considering expanding federal programs that provide banks with liquidity, in part to help the First Republic while it searches for a buyer. CNBC reported on Saturday that deposit inflows to big banks from smaller regions have slowed significantly. Regional bank stocks have come under significant pressure … Read more
My top 10 things to watch Wednesday, March 22 1. The Fed meeting: does it really matter? Despite the banking crisis, the market is betting nearly 90% on another quarter-point interest rate hike on Wednesday afternoon. Investors are looking for any forward-looking comments in Fed Chairman Jerome Powell’s policy statement and post-meeting press conference. The … Read more
Bank of the First Republic FRC 29.47% bolsters its advisory ranks as the troubled lender seeks to stay afloat and plan for a post-crisis future amid a transatlantic crisis of confidence in the banking system. The California bank this week typed Lazard ltd. LAZ 3.23% to assist in the consideration of strategic options which could … Read more
Discussions, though preliminary, have focused on how the industry could arrange an investment that would increase the bank’s capital, according to people familiar with the matter. Among the options on the table, people said, is investment in the First Republic by the banks themselves. Eleven major banks banded together last week to deposit $30 billion … Read more
The founding partner of Trian told CNBC that he spoke to elected officials about expanding the deposit insurance program which is currently capped at $250,000 per account. The change would involve paying insurance premiums to the Federal Reserve. “You would have money flowing in here from all over the world. People would feel safe,” Peltz … Read more
Top 10 things to watch Monday, March 20 1. Wall Street looks stable to start the week and ahead of the Fed’s interest rate decision after Wednesday afternoon’s meeting. The market is putting about a 60% chance on a quarter-point rate hike and 40% on no hike as policymakers watch ongoing banking struggles. Here are … Read more
Talks on bailing out Credit Suisse continued on Sunday as UBS demanded $6 billion from the Swiss government to cover the costs. UBS is under pressure from Swiss authorities to take over its local competitor to bring the crisis under control, two people with knowledge of the matter said. Regulators want a resolution before markets … Read more
A tumultuous week in U.S. financial markets ended on an uncertain note on Friday after a massive injection of $30 billion in deposits from major banks into First Republic Bank failed to calm investors. Last week, the sudden collapse of three US banks – Silvergate Capital, Signature Bank SBNY and Silicon Valley Bank – began … Read more
Retail investors are buying financial stocks in unprecedented amounts after the recent rout in the sector, according to Vanda Research. Banks have been battered following the collapse of Silicon Valley Bank and concerns over the financial condition of Credit Suisse. Shares of regional banks were particularly hard hit, with investors worried about whether they had … Read more
