Credit Suisse meets capital and liquidity requirements
Switzerland’s central bank and financial market watchdog said on Wednesday that Credit Suisse met capital and liquidity requirements and could access liquidity “if needed”. With this joint press release, the SNB and Finma came out of a long silence at the end of a day which saw the market value of Credit Suisse fall to less than 7 billion dollars.
Read alsoCredit Suisse’s descent into hell continues and causes panic in European markets
WTI ends at its lowest closing level since December 2021
As global markets are under stress, WTI ends at its lowest closing level since December 2021.
US markets were not spared
After the close of European stock markets, the Dow Jones fell by 1.77%, the Nasdaq index by 0.95% and the S&P 500 by 1.56%. In the banking sector, regional banks were also impacted: First Republic recorded a drop of more than 20% and PacWest of more than 18%.
The Dow Jones fell by 1.77%, the Nasdaq index by 0.95% and the S&P 500 by 1.56%. Pavel Bobrovskiy / stock.adobe.com
US Department of Economy says monitoring situation
The U.S. Treasury said “monitor the situation and be in contact with international counterpartsabout Credit Suisse. In France, Bruno Le Maire was to meet with his Swiss counterpart, according to the words of the Prime Minister.
Oil plunges 7%, on fears of an international recession
The bankruptcy of the SVB bank (Silicon Valley Bank) and the difficulties of Credit Suisse have repercussions on the price of crude. At 5:55 p.m. Paris time, the barrel of West Texas Intermediate (WTI) lost 7.57% to 65.93 dollars and Brent 7.36% to 71.75 dollars, its lowest since the end of 2021.
European stocks close lower
The fall of Credit Suisse did not spare the European stock markets, which fell 3% at the close. Paris fell by 3.58%, Frankfurt by 3.27% and London by 3.83%.
The Frankfurt Stock Exchange, Germany STAFF / REUTERS
At the close, Credit Suisse records the worst fall in its history
The Swiss bank recorded a drop of 24.24% to 1.697 Swiss francs when the stock market closed. However, it had managed to reduce its losses to 16% shortly before. The title lost during the day up to more than 30% of its value.
Swiss credit. FABRICE COFFRINI / AFP
Credit Suisse has reportedly asked the Swiss National Bank (SNB) for support
The Swiss bank would have asked the Swiss National Bank for public support, according to information from the Financial Times. She would have requested in particular, from the SNB as well as from the Swiss financial market supervisory authority (FINMA), a declarationreassuringon the economic health of the bank, after its shares fell.
Nobel laureate in economics Joseph Stiglitz does not rule out other failures in the banking sector
A few days after the bankruptcy of the Silicon Valley Bank, which shook banks and world markets, the Nobel Prize in economics Joseph Stiglitz does not exclude, in an interview with AFP, other failures to come. An exit that takes on even more meaning in the face of the difficulties encountered on Wednesday by Credit Suisse, the second Swiss banking establishment. ” Banks are healthier than in the past, especially in 2008. There has been progress, but not as much as needed », Asserts the economist. And to add: “the stability of the financial system must be rethought”.
Read also“The stability of the financial system must be rethought”, judges the Nobel Prize in economics Joseph Stiglitz
Credit Suisse cuts losses to -16%
One hour before closing, the title of the Swiss bank lost just over 16% to 1.8750 Swiss francs. Its stock price had fallen more than 30% during the day.
A “crisis that drags on” could be possible, warns the boss of BlackRock
In an annual letter to his investors, Larry Fink castigates the sudden rise in interest rates to fight inflation, which is the “ price to pay for years of easy money “. The boss of the American asset management giant believes that “ it is still too early to know the extent of the damage ».
Read alsoBlackRock boss fears ‘elongating crisis’ for US regional banks
Larry Fink, patron de BlackRock. THOMAS PETER / REUTERS
Fall of the euro which unscrews against the dollar
The euro and other European currencies were falling against the dollar due to falling banking stocks in Europe. The euro lost 1.71% to 1.0549 dollars around 2:50 p.m. in Paris. As for the Swiss franc, it yielded 0.89% to 0.9224 Swiss francs for one dollar.
Read alsoConcern spreads to the European economy and the euro falls against the dollar
Credit Suisse: this subject “must be settled” by the Swiss authorities, according to Élisabeth Borne
According to the Prime Minister, the Minister of Finance will have a contact with his Swiss counterpart in the coming hours. “This subject is the responsibility of the Swiss authorities and must be settled by them,” she insisted. “We are vigilant but the situation is very different from that which we experienced in 2008” she recalls nevertheless. Credit Suisse shares fell 30.13% at 1:12 p.m. GMT, to a historic low.
Elisabeth Borne, the Prime Minister. LUDOVIC MARIN / AFP
Credit Suisse’s descent into hell continues
The descent into hell of the former jewel of Swiss finance began in 2019. That year, the bank was shaken by an incredible spy scandal involving former executives which ended in his departure in February 2020 of Tidjane Thiam, its Franco-Ivorian general manager. Since then, three leaders have succeeded him. Find the article by our journalist Danièle Guinot.
European stock markets unscrew, the New York Stock Exchange opens lower
The shock wave is spreading across all European markets. The banking sector is suffering considerably: around 3:30 p.m., BNP Paribas fell by -8.64%, Société Générale by 11.42% and Commerzbank by 8.53%. The New York Stock Exchange is moving lower shortly after opening. Around 2:00 p.m. GMT, the Dow Jones returned 1.72%, the Nasdaq index fell by 1.26% and the broader S&P 500 index by 1.63%.
Read alsoThe European stock markets are unscrewing again, BNP Paribas and Société Générale fall by more than 10%
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After a day of calm, the markets, still undermined by the bankruptcy of Silicon Valley Bank, are again in turmoil on Wednesday. At the center of concern, the bank Credit Suisse. The chairman of its largest shareholder, Saudi National Bank, said in an interview with Bloomberg that he was not going to “absolutely not” support the bank in difficulty by raising more capital. Follow live with us the latest information.