![]() ![]() ![]() The Index focuses on a primary variable-the topic of the story-and measures what percentage of the newshole analyzed is about that topic. The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023.The PEJ News Coverage Index analyzes a wide swath of American news media to identify what is being covered and not covered-the media’s broad news agenda.Įach week, the Index issues a report on the top stories across the mainstream news media, as well as a breakdown of how the news agenda that week differed among the media sectors–network TV, for instance, vs. The Swiss bank has been pushing to raise money from investors and roll out a new strategy to overcome an array of troubles, including bad bets on hedge funds, repeated shake-ups of its top management and a spying scandal involving UBS. Notably, Credit Suisse did not need government assistance in 2008 during the financial crisis, while UBS did.ĭespite the banking turmoil, the European Central Bank on Thursday approved a large, half-percentage point increase in interest rates to try to curb stubbornly high inflation, saying Europe’s banking sector is “resilient,” with strong finances.ĮCB President Christine Lagarde said the banks “are in a completely different position from 2008” during the financial crisis, partly because of stricter government regulation. The firm has significant trading desks around the world, caters to the rich and wealthy through its wealth management business, and is a major advisor for global companies in mergers and acquisitions. While smaller than its Swiss rival UBS, Credit Suisse still wields considerable influence, with $1.4 trillion assets under management. That fanned fears that Credit Suisse would be the next domino to fall. Its current troubles began after Credit Suisse reported on Tuesday that managers had identified “material weaknesses” in the bank’s internal controls on financial reporting as of the end of last year. ![]() The stock has seen a long downward slide: It traded at more than 80 francs in 2007. On Friday, shares dropped 8 percent to close at 1.86 francs ($2) on the Swiss exchange. The deal caps a highly volatile week for Credit Suisse, most notably on Wednesday when its shares plunged to a record low after its largest investor, the Saudi National Bank, said it wouldn’t invest any more money into the bank to avoid tripping regulations that would kick in if its stake rose about 10 percent. As a result, their downfall does not necessarily signal the start of a financial crisis similar to what occurred in 2008. Still, many of Credit Suisse’s problems are unique and do not overlap with the weaknesses that brought down Silicon Valley Bank and Signature Bank, whose failures led to a significant rescue effort by the Federal Deposit Insurance Corporation and the Federal Reserve. Yet the move did not appear to be enough to stem an outflow of deposits, according to news reports. The 167-year-old Credit Suisse already received a $50 billion (54 million Swiss francs) loan from the Swiss National Bank, which briefly caused a rally in the bank’s stock price. READ MORE: Analysis: Why Silicon Valley Bank and Signature Bank failed so fast Still, global financial markets have been on edge since Credit Suisse’s share price began plummeting this week. government to prevent any further bank panics. banks last week that spurred a frantic, broad response from the U.S. ![]() Sunday’s news conference follows the collapse of two large U.S. This means regulators believe its uncontrolled failure would lead to ripples throughout the financial system not unlike the collapse of Lehman Brothers 15 years ago. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.”Ĭredit Suisse is designated by the Financial Stability Board, an international body that monitors the global financial system, as one of the world’s globally systemic important banks. Swiss president Alain Berset, who did not specify a value of the deal, called the announcement “one of great breadth for the stability of international finance. BERN, Switzerland (AP) - Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain Berset announced on Sunday night. ![]()
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