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☆ What analysts are saying about Credit Suisse after 'central bank bazooka' is unleashed
▼ + stars: | 2023-03-16 | by ( Sarah Min | ) www.cnbc.com time to read: +4 min

Wall Street analysts were split on whether they should buy into Credit Suisse — though they found central bank support of the troubled Swiss firm reassuring. Earlier, the central bank said it would give Credit Suisse liquidity if necessary, saying the firm is well capitalized. On Wednesday, Credit Suisse shares tumbled 13.9% after the firm's largest investor, the Saudi National Bank, said it could not give more funding, driving fears of a banking crisis in Europe. However, following the decision to borrow from the central bank, JPMorgan's Roberto Henriques reiterated an overweight rating on the firm. The analyst expects that the "central bank bazooka" will assuage investors concerned over liquidity issues and give Credit Suisse enough time to roll out a restructuring plan.

☆ Factbox: Credit Suisse's troubles - spies, money laundering and takeover
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

Credit Suisse has said it expects the case, which it is appealing, to cost it around $600 million. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted. Swiss regulators have rebuked Credit Suisse for "serious" failings in its handling of the multi-billion dollar business with Greensill. Switzerland's financial regulator said Credit Suisse had misled it about the scale of the spying. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Credit Suisse to borrow up to nearly $54 billion from Swiss National Bank
▼ + stars: | 2023-03-16 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Credit Suisse announced late Wednesday it will be borrowing up to about $54 billion from Swiss National Bank. People walk by the New York headquarters of Credit Suisse on March 15, 2023 in New York City. Credit Suisse announced it will be borrowing up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility and a short-term liquidity facility. The decision comes shortly after shares of the lender fell sharply Wednesday, hitting an all-time low for a second consecutive day after its top investor Saudi National Bank said it won't be able to provide further assistance. The latest steps will "support Credit Suisse's core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs," the company said in an announcement.

☆ Credit Suisse: Why it’s struggling and why that’s a big deal
▼ + stars: | 2023-03-16 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +5 min

Credit Suisse is one of the biggest financial institutions in the world. “Credit Suisse is much more globally interconnected … not just a Swiss problem but a global one.”Why is Credit Suisse struggling now? That engulfed other banks facing big problems, including Credit Suisse, which has been a slow-moving car wreck for decades. In 2014, Credit Suisse pleaded guilty to federal charges that it illegally allowed some U.S. clients to evade their taxes. Credit Suisse acted as an underwriter when the company went public on the Nasdaq in 2019.

☆ What happened at Credit Suisse and how did it reach crisis point?
▼ + stars: | 2023-03-16 | by ( Anshuman Daga | ) www.reuters.com time to read: +4 min

In December, Credit Suisse had tapped investors for 4 billion Swiss francs. Credit Suisse shares have lost more than 75% of their value over the past twelve months. Reuters Graphics Reuters GraphicsWHAT STEPS CAN CREDIT SUISSE TAKE TO CALM INVESTORS? HOW IMPORTANT IS CREDIT SUISSE? Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations.

☆ Treasury yields mixed as investors assess stock market outlook
▼ + stars: | 2023-03-16 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +2 min

Meanwhile, the yield on the 30-year Treasury dipped by under a basis point to 3.6855%. ET, the yield on the 10-year Treasury was up over two basis points to 3.5167%. The 2-year Treasury was trading at around 4.0237% after rising by more than five basis points. U.S. Treasury yields were mixed on Thursday as investors closely watched developments on the stock market, especially the banking sector, and digested the latest inflation-related economic data. Investors had been expecting a 50 basis point hike, but are now anticipating a smaller one of 25 basis points as they expect the Fed could prioritize stability in light of market turmoil.

☆ Stocks slide, safety shines as bank fears spread
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

Switzerland's central bank pledged to fund Credit Suisse "if necessary," which lifted Wall Street indexes from lows in afternoon trade, but the intervention isn't exactly soothing market fears. In a joint statement, the Swiss financial regulator and the nation's central bank said Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks." They said the bank could access liquidity from the central bank if needed. The moves follow the collapse of U.S. lenders Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) in recent days which have sent financial markets on a roller-coaster ride. Shares in big U.S. banks including JPMorgan Chase (JPM.N), Citigroup (C.N) and Bank of America (BAC.N) fell overnight, pushing the S&P 500 banking index (.SPXBK) down 3.62%.

March 16 (Reuters) - U.S. shareholders of Credit Suisse Group AG (CSGN.S) sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances. The proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting. Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Turner, the named plaintiff, sued on behalf of holders of Credit Suisse's American depositary shares from March 10, 2022, to March 15, 2023. The case is Turner v Credit Suisse Group AG et al, U.S. District Court, District of New Jersey, No.

☆ Explainer: Credit Suisse: How did it get to crisis point?
▼ + stars: | 2023-03-16 | by ( Anshuman Daga | ) www.reuters.com time to read: +3 min

Credit Suisse confirmed last month that clients had pulled 110 billion Swiss francs of funds in the fourth quarter while the bank suffered its biggest annual loss of 7.29 billion Swiss francs since the financial crisis. In December, Credit Suisse had tapped investors for 4 billion Swiss francs. Reuters Graphics Reuters GraphicsWHAT STEPS CAN CREDIT SUISSE TAKE TO CALM INVESTORS? HOW IMPORTANT IS CREDIT SUISSE? Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations.

☆ Playing defense as market tumbles — 10 stocks that outperform in recessions
▼ + stars: | 2023-03-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

As the market tumbles and recession risks rise, it's time to start playing defense and buying stocks that are poised to outperform in the later innings of the U.S. market cycle, according to Wolfe Research. Bond yields have fallen, oil prices have steeply dropped and stock market volatility has surged. With that in mind, here are 10 of the stocks that Wolfe Research believes outperform the rest of the market during a recession. It has an estimated 2023 P/E of 24.7x and an EV/2023 estimated EBITDA of 16.4x. The drugmaker has an estimated 2023 P/E of 37.2x and an EV/2023 estimated EBITDA of 28.7x.

☆ Saudi National Bank chairman: There has been no discussion on providing assistance to Credit Suisse
▼ + stars: | 2023-03-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSaudi National Bank chairman: There has been no discussion on providing assistance to Credit SuisseAmmar Al Khudairy, chairman of Saudi National Bank, says its message hasn't changed since October.

☆ A risk gauge for European banks is surging after SVB collapse: Here are the worst impacted
▼ + stars: | 2023-03-16 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Risk indicators such as the rates on credit default swaps are rising for the European banking sector following the failure of Silicon Valley Bank last week. CDS — a type of financial derivative — rise in value as the risk of default increases. CDS rates above one percentage point are an extremely rare event seen only during market stress, such as the height of the euro zone debt crisis in 2012. No other European bank had rates above this level. CDS rates were at about 0.6% for Germany's largest lender Deutsche Bank , the second highest currently, which saw a nine basis point jump in CDS rates since the beginning of March.

☆ Saudi National Bank says panic over Credit Suisse is 'unwarranted'
▼ + stars: | 2023-03-16 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Credit Suisse 's largest shareholder Saudi National Bank said the market turmoil in shares of the Swiss lender was "unwarranted." "If you look at how the entire banking sector has dropped, unfortunately, a lot of people were just looking for excuses," Saudi National Bank chairman Ammar Al Khudairy told CNBC's Hadley Gamble on Thursday. I believe completely unwarranted, whether it be for Credit Suisse or for the entire market," he said on CNBC's "Capital Connection." His comments come hours after Credit Suisse announced that it is taking "decisive action" to borrow up to 50 billion Swiss francs ($53.68 billion). The lender's shares plunged Wednesday after a report that the Saudi bank said it could not provide Credit Suisse with any further financial assistance.

☆ ETFs show that investors are confused about where the markets are going
▼ + stars: | 2023-03-16 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

A common tool to gauge the market's intent is following inflows and outflows in large ETFs. There have been outflows from corporate bond ETFs like Vanguard Short-Term Corporate Bond (VCSH), high yield funds like SPDR High Yield ETF (JNK), bank loan ETFs like SPDR Senior Loan ETF (SRLN) and bank stock ETFs like Invesco KBW Bank ETF (KBWB). The Credit Suisse issue was somewhat different. Europeans at the conference were surprised that there was a focus on Credit Suisse. The common thread of the commentary was that Credit Suisse had never recovered from the financial crisis, that it had been in decline for nearly 20 years.

☆ Factbox: FACTBOX Credit Suisse's troubles - spies, money laundering and central bank cash
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

Lescaudron was convicted by a Swiss court in 2018 of having forged the signatures of former clients, including Ivanishvili, over an eight-year period. Credit Suisse has said it expects the case, which it is appealing, to cost it around $600 million. The hedge fund's highly leveraged bets on certain technology stocks backfired and the value of its portfolio with Credit Suisse plummeted. Swiss regulators have rebuked Credit Suisse for "serious" failings in its handling of the multi-billion dollar business with Greensill. In response, Credit Suisse said it condemned the spying and had taken "decisive" steps to improve its governance and strengthen compliance.

☆ Top US Senate Democrat Schumer wants legislative response to banking ills
▼ + stars: | 2023-03-15 | by ( Moira Warburton | ) www.reuters.com time to read: +3 min

"We need strong legislation and hopefully we can put something together that's bipartisan," Schumer told reporters following a closed policy lunch with his fellow Democrats. Calls for increased oversight of the U.S. banking industry grew as fallout from Friday's collapse of Silicon Valley Bank (SVB) widened. Senate Banking Committee Chairman Sherrod Brown, however, downplayed the likelihood of Congress passing a "significant" banking bill anytime soon. Republicans hold a narrow majority in the House of Representatives and Democrats do not control enough votes in the Senate to advance legislation without Republican cooperation. Reporting by Moira Warburton and Richard Cowan in Washington; Editing by Mark Porter and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse shares down by a quarter, key backer says no more money
▼ + stars: | 2023-03-15 | by ( Noele Illien | ) www.reuters.com time to read: +3 min

Saudi National Bank (SNB) (1180.SE), which holds 9.88% of Credit Suisse, said it would not buy more shares in the Swiss bank on regulatory grounds. The Swiss bank's shares were down about 24% early afternoon on Wednesday, after hitting a new record low. Koerner had said earlier in the week Credit Suisse's liquidity coverage ratio averaged 150% in the first quarter of this year. The Swiss National Bank declined to comment on Credit Suisse's stock move. Five-year credit default swaps on Credit Suisse debt widened to 574 basis points from 549 bps at last close, based on data from S&P Global Market Intelligence, marking a new record high.

Credit Suisse fell below 2 Swiss francs ($2.18) for the first time after Saudi National Bank said it could not go above 10% ownership due to a regulatory issue. Credit Suisse shares fell by as much as 23.8% and were last down 20.2%. An index of European bank stocks (.SX7P) fell in morning trading and was last down 6.1%, hitting its lowest since January 3. Fears of contagion after the collapse of tech-focused lender SVB (SIVB.O) and New York-based Signature Bank (SBNY.O) last week have weighed on European bank stocks. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.

☆ Credit Suisse sheds nearly 25%, key backer says no more money
▼ + stars: | 2023-03-15 | by ( Noele Illien | ) www.reuters.com time to read: +2 min

It’s a regulatory issue," Saudi National Bank (1180.SE) chairman Ammar Al Khudairy said on Wednesday. The Saudi lender acquired a stake of almost 10% last year after taking part in Credit Suisse's capital raising and committed to investing up to 1.5 billion Swiss francs ($1.5 billion). Credit Suisse on Tuesday published its annual report for 2022 saying the bank had identified "material weaknesses" in controls over financial reporting and not yet stemmed customer outflows. Five-year credit default swaps on Credit Suisse debt widened to 574 basis points from 549 bps at last close, according to data from S&P Global Market Intelligence, marking a new record high. Earlier this week, Credit Suisse CEO Ulrich Koerner told a conference that the bank's liquidity coverage ratio averaged 150% in the first quarter of this year - well above regulatory requirements.

☆ Instant View: Banking stocks tank again as Credit Suisse woes rock market
▼ + stars: | 2023-03-15 | by ( Reuters Staff | ) www.reuters.com time to read: +3 min

FILE PHOTO: A Credit Suisse logo is pictured on a the roof of a branch in Geneva, Switzerland, November 3, 2022. European banks shares slid over 6%, European stocks were down more 3% and U.S. stock futures pointed to a weak start for Wall Street shares. MARKET REACTION:STOCKS: Credit Suisse share trading was halted after heavy losses, last down over 20%, ING Group, ABN AMRO were4 down over 6%. “But in general, the balance sheet is in a much better position, with the European banks all highly regulated. So, it is important that the European regulator make clear that the underlying systemic risk, not only for deposits, but in the overall European banking market, is rather low.”

☆ Credit Suisse hits record low, biggest backer says can't put up more money
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

ZURICH, March 15 (Reuters) - Credit Suisse (CSGN.S) shares slid on Wednesday, dropping by as much as 10.5% to a new record low, as its largest investor said it could not provide the Swiss bank with more financial assistance. Credit Suisse on Tuesday published its annual report for 2022 saying the bank had identified "material weaknesses" in controls over financial reporting and not yet stemmed customer outflows. Customer outflows in the fourth quarter rose to more than 110 billion Swiss francs ($120 billion). The shares were last down 10.2% at 2.01 Swiss francs ($2.19) in Zurich, heading for a seventh straight daily decline. Five-year credit default swaps on Credit Suisse debt widened to 533 basis points from 549 bps at last close, according to data from S&P Global Market Intelligence.

☆ Credit Suisse's Saudi backer happy with transformation plan, doesn't think extra money needed
▼ + stars: | 2023-03-15 | by ( Rachna Uppal | ) www.reuters.com time to read: +1 min

RIYADH, March 15 (Reuters) - Credit Suisse Group's Saudi backer is happy with the transformation plan and doesn't think the Swiss lender will need extra money. "We are happy with the plan, the transformation plan that they have put forward. It is a very strong bank," Al Khudairy said on in an interview with Reuters. And they operate under a strong regulatory regime in Switzerland and in other countries," Al Khudairy said on the sidelines of a conference in Riyadh. SNB's investment objective is not dependent on time, and the Saudi bank will exit when proper value to the shares is acquired, he added.

ZURICH/FRANKFURT, March 15 (Reuters) - Swiss financial regulator FINMA and the nation's central bank said on Wednesday that the Swiss National Bank would provide Credit Suisse (CSGN.S) liquidity "if necessary", a first for a global bank since the financial crisis. The two institutions said in a joint statement that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks". Governments and at least one bank were putting pressure on Switzerland to act, said people familiar with the matter. Shares in Credit Suisse, which is battling to recover from a string of scandals that have undermined the confidence of investors and clients, lost nearly a quarter of their value on Wednesday. The stock, which was worth around 80 Swiss francs in 2008 plunged to 1.55 Swiss francs on Wednesday.

☆ Premarket stocks: The forgotten rescue plan that could prevent another SVB-like collapse
▼ + stars: | 2023-03-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

Bank stocks rebounded significantly on Tuesday after logging record plunges Monday and the week prior. Those banks will coordinate to take Fed loans around the same time on the same day alongside smaller banks. ▸ US bank stocks rebounded on Tuesday, recovering some of their losses after the collapse of three banks tested markets on Monday. Regional bank stocks rallied: First Republic (FRC) Bank ended the day up 27% after a record drop on Monday. The question is whether bank stocks can hold on to their gains or if Tuesday was just a sector-wide dead cat bounce.

☆ Saudi National Bank not looking at international opportunities
▼ + stars: | 2023-03-15 | by ( Rachna Uppal | ) www.reuters.com time to read: +2 min

RIYADH, March 15 (Reuters) - The chair of Saudi National Bank (SNB) (1180.SE), the kingdom's biggest lender, which last year acquired a stake of almost 10% in Credit Suisse (CSGN.S), said on Wednesday the bank was not considering any specific international opportunities. SNB Chair Ammar Al Khudairy said the bank is instead focused on growing its business in Saudi Arabia. "As of today we are not looking at specific opportunities," Al Khudairy told Reuters in an interview on the sidelines of the Financial Sector Conference in the Saudi capital. "If anything, in the last 12 months, the Saudi market is one of the most exciting markets. Al Khudairy said the bank wants to increase its retail coverage in Saudi Arabia and deploy capital across the country in both the private sector and the government-led gigaprojects underway.

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