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[1/2] The Credit Suisse logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 16, 2023. Credit Suisse AT1 bondholders get nothing under the UBS merger deal. A WisdomTree exchange traded fund that tracks a broad index of bank AT1s, has dropped 11% in the past fortnight. Credit Suisse AT1s made up less than 3% of the fund just before the Swiss bank's rescue, the asset manager disclosed. Deutsche Bank AT1 debt is trading at 74 cents on the dollar, off last week's lows around 67 cents but still below levels seen before the Credit Suisse writedown, Tradeweb data shows.

☆ Asian shares ride high in Q1 but keep vigil on inflation
▼ + stars: | 2023-03-31 | by ( Stella Qiu | ) www.reuters.com time to read: +5 min

The buoyant mood is likely to run into resistance in Europe, with caution setting in ahead of the euro zone inflation data. The pan-region Euro Stoxx 50 futures was flat, while S&P 500 futures eked out a gain of 0.2%. It is on course for a quarterly gain of 3.6%, after surging 12% in the three months that ended in December. Japan's Nikkei (.N225) also leaped 1%，as inflation data for the capital Tokyo highlighted broadening price pressures. That compared with an overwhelming bet on a 25 basis point hike a month ago before the banking volatility started.

☆ Asian shares ride high in Q1 but steel for U.S. inflation data
▼ + stars: | 2023-03-31 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

Japan's Nikkei (.N225) also gained 1%，as inflation data for the capital city Tokyo highlighted broadening price pressures. A slower than expected decline in German inflation has raised the stakes for U.S. personal consumption expenditures (PCE) inflation, tracked by the Federal Reserve for monetary policy, later in the day. Economists are expecting the PCE index to ease to 0.4% in February from January when it rose 0.6%. "With central banks still mindful of inflation risks, interest rates will stay at their peaks for several months. That compared with an overwhelming bet on a 25 basis point hike a month ago before the banking volatility started.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. Global standards for dealing with teetering “too big to fail” banks were key a part of the package of rules introduced after the global financial crisis. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

“I have argued for years that the biggest banks in the world are still too big to fail. In practice, however, the economic damage would be considerable.”Keller-Sutter was at the center of a government-orchestrated rescue of Credit Suisse by its larger rival UBS (UBS) earlier this month. They were designed to make it possible to wind down a big bank without destabilizing the financial system or exposing taxpayers to the risk of losses. Although some investors in Credit Suisse bonds lost everything, Swiss taxpayers are still on the hook for up to 9 billion Swiss francs ($9.8 billion) of potential losses arising from certain Credit Suisse assets. The rest is lent out at higher interest rates or invested, because that’s how big banks make most of their profit.

☆ Credit Suisse crisis: Not much risk of contagion in the regulated banking sector, says S&P
▼ + stars: | 2023-03-30 | 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 EmailCredit Suisse crisis: Not much risk of contagion in the regulated banking sector, says S&PPaul Watters, head of corporate credit research at S&P Global Ratings, discusses the Credit Suisse crisis and the European banking system.

☆ Credit Suisse Has UBS Worried, Spurring Return of Sergio Ermotti
▼ + stars: | 2023-03-29 | by ( Stephen Wilmot | ) www.wsj.com time to read: 1 min

UBS is replacing its chief executive officer for the same reason that investors are still wary of its deal with Credit Suisse: Execution risk looms large. The Swiss bank said Wednesday that former CEO Sergio Ermotti would succeed incumbent Ralph Hamers next week to complete the takeover of Credit Suisse and lead the subsequent integration. Mr. Ermotti guided UBS through its crisis years following a rogue-trader scandal in 2011, cutting risk at the investment bank and refocusing the brand squarely on wealth management. Given that the Credit Suisse takeover will also involve downsizing a risk-happy investment bank, he is an obvious candidate for the job.

☆ UBS names Sergio Ermotti as its new CEO, following acquisition of Credit Suisse
▼ + stars: | 2023-03-29 | by ( Joanna Tan | ) www.cnbc.com time to read: 1 min

Signage at the UBS flagship office in New York, US, on Tuesday, March 21, 2023. UBS named Sergio Ermotti as its new CEO on Wednesday, following the recent acquisition of Credit Suisse. The cuurrent CEO Ralph Hamers is set to remain at UBS and work alongside Sergio P. Ermotti to advise the bank during a transition period, the company said in a statement. "The Board wishes to express its deep gratitude to Ralph Hamers for his outstanding leadership, steering UBS to record results in two successive years, and for his instrumental role in bringing about the Credit Suisse acquisition," the Swiss bank said. Please check back for updates.

☆ 'Call of duty': With Sergio Ermotti, Switzerland gets a cost-cutting local to restore its reputation
▼ + stars: | 2023-03-29 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

UBS announced on Wednesday that the former CEO would replace Ralph Hamers from April 5, as the Swiss bank undertakes the mammoth task of integrating fallen rival Credit Suisse into its business. Incoming UBS CEO Sergio Ermotti on Wednesday said his return to the helm was "a call of duty," as the Swiss veteran takes on the task of restoring order to the country's battered financial reputation . Kelleher emphasized that Ermotti's task — the successful integration of Credit Suisse into UBS — was "essential for both banks' clients, people and investors, for Switzerland and for the global financial system in general." Asked by CNBC during Wednesday's press conference about his motivation for returning to UBS, Ermotti said there was "a call of duty aspect" to his decision. "I'm fully aware that we need to work very hard here to avoid any consequence for the taxpayers in Switzerland.

☆ Deutsche Bank five years ago is the Credit Suisse of its time: WSJ's Alex Frangos
▼ + stars: | 2023-03-29 | 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 EmailDeutsche Bank five years ago is the Credit Suisse of its time: WSJ's Alex FrangosAlex Frangos, Europe finance editor at The Wall Street Journal, joins 'The Exchange' to discuss UBS taking over Credit Suisse, the Senate inquiry into tax fraud concerns associated with Credit Suisse, and more.

☆ Boomerang UBS boss ticks several important boxes
▼ + stars: | 2023-03-29 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

That’s the best explanation for why Chair Colm Kelleher on Wednesday said the Swiss bank was replacing CEO Ralph Hamers with erstwhile boss Sergio Ermotti. Though the move violates several corporate-governance red lines, it improves the group’s chances of successfully absorbing stricken rival Credit Suisse (CSGN.S). Nor was his hesitant delivery in a call with analysts after announcing the Credit Suisse deal. During his previous spell in charge, UBS held talks with Deutsche Bank (DBKGn.DE) and discussed a merger with Credit Suisse. Ermotti, a Swiss national, led the Swiss bank for nine years, departing in late 2020, and is currently chair of Swiss Re.

☆ Senate probe alleges Credit Suisse aided Americans in tax evasion scheme
▼ + stars: | 2023-03-29 | 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 EmailSenate probe alleges Credit Suisse aided Americans in tax evasion schemeCNBC's Eamon Javers joins 'Squawk on the Street' to discuss allegations of a tax fraud scheme with Credit Suisse and wealthy American families, the Senate probe into the Credit Suisse scheme, and more.

☆ Can the U.S. See the Truth About China?
▼ + stars: | 2023-03-27 | by ( David Marchese | ) www.nytimes.com time to read: +14 min

Photo illustration by Bráulio Amado Talk Can the U.S. See the Truth About China? To see China solely as trying to displace the United States is only going to stoke more fears. The Chinese people believe that a substantially weakened Russia might not be in the interest of China, because if there were the sense that the United States needed to seek out an opponent, China would be next. And then also, the United States thinks that China wants to displace it. The industrial espionage stems from a lack of appreciation from the start of intellectual property, and the United States, by pushing China to do more intellectual-property protection, is actually good for China.

☆ Swiss sight deposits jump, suggesting Credit Suisse, UBS took emergency liquidity
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +2 min

[1/2] A logo is pictured on the Credit Suisse bank in Geneva, Switzerland, March 15, 2023. Sight deposits - cash held by the SNB for commercial banks overnight - jumped to 567 billion Swiss francs ($619 billion) from 515 billion francs a week earlier. Last week's rise indicates that both UBS and Credit Suisse may have used some of the 200 billion francs in extra liquidity offered by the SNB as part of a state-sponsored rescue of Credit Suisse. UBS agreed to buy Credit Suisse for 3 billion Swiss francs in stock in a merger engineered to avoid more market-shaking turmoil in global banking. Credit Suisse had already said it would take 50 billion francs from the SNB under its emergency liquidity assistance (ELA) facility before the UBS takeover.

☆ The banking crisis has college students on edge about Wall Street jobs and internships. 'I just want to know what the plan is.'
▼ + stars: | 2023-03-27 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +6 min

That's the concern plaguing aspiring investment bankers across the country as they watch the banking crisis unfold. "I think there's definitely a sense of unease in finance," said Asif Rahman, co-founder of Wall Street career coaching company Office Hours. Over at SVB's investment banking arm, incoming first-year analysts have been told that their jobs are secure. "We've reached out to all of our incoming analysts and interns. "The incoming summer interns are worried about low return offer rates," the professor said.

☆ UBS offers retention packages to Credit Suisse Asia wealth bankers -sources
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +1 min

In a town hall address in Hong Kong on Friday, Iqbal Khan, UBS's president for global wealth management, also focussed on stabilising the Credit Suisse Asia team and boosting confidence, one of the two sources said. In his address, Khan said the top performers at the Credit Suisse wealth business will get retention packages, the second source said. Spokespeople for Credit Suisse and UBS declined to comment. UBS told Credit Suisse wealth bankers in Zurich this week that it is weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, Reuters reported on Monday. Reporting by Xie Yu in Hong Kong and Scott Murdoch in Sydney; Editing by Sumeet Chatterjee, Christian Schmollinger and Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.

☆ Swiss franc grapples with safe-haven identity crisis after Credit Suisse
▼ + stars: | 2023-03-24 | by ( Samuel Indyk | ) www.reuters.com time to read: +5 min

Money managers ditched the Swiss franc at the fastest rate in two years last week in the run-up to the dramatic takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S). "You still have some of the safe-haven hedging properties in the Swiss franc but it can only take so much when the risk ends up being so concentrated in the Swiss economy and the Swiss financial sector," Kundby-Nielsen added. "If it hadn't been Credit Suisse, but any other European bank getting into trouble, you would have seen the Swiss franc rising sharply because it would have been the safe haven for European risk," said Francesco Pesole, FX strategist at ING. "The franc is not an 'all-weather' safe haven and so far we've not had the type of market pressures that would typically lead to franc appreciation," he said. SWISSIt's one thing for the franc to have lost some favour among investors during a Swiss-centric crisis, but quite another to suggest its days as a safe haven are numbered.

☆ European banks face renewed selling pressure
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +8 min

So people are acting with their feet and continuing to sell bank stocks. ING ECONOMICS TEAM (emailed) "Most European banks are impacted by these events mainly via the more cautious market sentiment. "It seems like post what happened to Credit Suisse last weekend, two things might be at play here. “European banks probably suffered from contagion from what was going on in the US, where the regional banks seem to be under pressure in the rising rate environment. European banks have, in fact, had no fundamental issues whatsoever.

☆ Fed emergency lending to banks boosted overall Fed holdings in latest week
▼ + stars: | 2023-03-23 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

However, as of Wednesday, banks boosted borrowing under the central bank’s newly launched Bank Term Funding Program to $53.7 billion. In its first outing last week, the facility had drawn a smaller than expected $11.9 billion in lending. The Fed also reported lending to foreign central banks and monetary authorities went from nothing on March 15 to $60 billion on Wednesday. Several major central banks announced recently they would draw on Fed dollar liquidity as needed. “Our banking system is sound and resilient with strong capital and liquidity” and “all depositors’ savings in the banking system are safe,” he told a media conference.

Britain and Norway hiked rates by 25 bps each, the Swiss National Bank jacked up rates by 50 bps. The European Central Bank hiked rates by 50 bps a week ago. ClearBridge strategist Jeffrey Schluze said, European banking regulation since the global financial crisis has been more stringent than in the United States, making the outlook for European lenders relatively strong. While banking stocks have been battered globally, the S&P 500 is up 0.5% this month (.SPX), while Europe's STOXX 600 index down 3.2% (.STOXX). CHANGE IN TONEBefore the banking turmoil, markets were driven by one-way moves as high inflation pressured U.S. and European markets.

☆ Inflation shock puts Bank of England on course to raise rates again
▼ + stars: | 2023-03-23 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

[1/2] A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. Most economists had believed inflation was on course to fall steadily, after hitting a 41-year high above 11% in October. But Wednesday's data - showing inflation rising to 10.4% in February rather continuing its descent - immediately turned Thursday's announcement into an almost one-way bet on a quarter percentage-point increase in Bank Rate. As recently as Tuesday, investors were split almost 50-50 on whether the BoE would leave Bank Rate unchanged for the first time since November 2021. The European Central Bank last week stuck to its plans and raised rates by 50 basis points despite the Credit Suisse turmoil.

☆ Bank of England raises interest rates again, sees inflation falling
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +5 min

Sounding more upbeat about the outlook for the country's slow pace of economic growth, the BoE's nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%. "The MPC will continue to monitor closely any effect on the credit conditions faced by households and businesses, and hence the impact on the macroeconomic and inflation outlook," it said. On Wednesday, the U.S. Federal Reserve raised its main interest rates by a quarter of a percentage point, and indicated it was on the verge of pausing further increases. However, it said it expected wages to rise slightly less than it had previously forecast, as inflation expectations fell. The BoE was the first major central bank to start raising rates in December 2021 and until this week had seemed likely to join the Bank of Canada which this month stopped raising borrowing costs.

☆ Swiss National Bank chair: Maintaining stability is our main goal
▼ + stars: | 2023-03-23 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: 1 min

Chairman of the Swiss National Bank, Thomas Jordan, discusses the bank's decision to hike interest rates and its response to the Credit Suisse fallout with CNBC's Joumanna Bercetche.

☆ Credit Suisse rescue creates bank twice the size of Switzerland's economy
▼ + stars: | 2023-03-23 | by ( Hanna Ziady | ) edition.cnn.com time to read: +9 min

London CNN —The last-minute rescue of Credit Suisse may have prevented the current banking crisis from exploding, but it’s a raw deal for Switzerland. An aerial view of the headquarters of Credit Suisse, center, and UBS, left, at Paradeplatz in Zurich, Switzerland on Sunday, 19 March, 2023. Credit Suisse is “part of Switzerland’s identity,” said Hans Gersbach, a professor of macroeconomics at ETH university in Zurich. “The Credit Suisse Swiss bank is a fine asset that we are very determined to keep,” Kelleher said Sunday. Integration is difficultAt $3.25 billion, UBS got Credit Suisse for 60% less than the bank was worth when markets closed two days prior.

The latest move to restore calm to restive regional bank stocks came as Pacific Western Bank (PACW.O), one of the regional lenders caught up in the market volatility, said it had raised $1.4 billion from investment firm Atlas SP Partners. While that deal brought some respite to battered banking stocks, First Republic (FRC.N) remains firmly in the spotlight. For now, the rescue of Credit Suisse appears to have calmed the worst fears of systemic contagion, boosting shares of European banks (.SX7P) and U.S. lenders (.SPXBK). Reuters Graphics Reuters Graphics'HEAD IN SAND'The wipeout of Credit Suisse's Additional Tier-1 (AT1) bondholders has sent shockwaves through bank debt markets. Seeking to boost confidence among investors rattled by its $3 billion Credit Suisse rescue, UBS said on Wednesday it would buy back 2.75 billion euros ($2.96 billion) worth of debt it issued less than week ago.

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