From Breakingviews - Resolving Credit Suisse: an alternative history
, and about half of what Credit Suisse itself reported in 2015. Over 80% of Credit Suisse’s derivatives are interest-rate products, which are increasingly cleared through central counterparties, limiting the contagion if a firm goes under.The following morning Angehrn explains how a Credit Suisse resolution will work. FINMA will wipe out the bank’s existing shares and hybrid debt instruments, and then convert the $64 billion of bail-in bonds to ordinary shares.
Next will come a restructuring designed to keep any viable bits of the bank going and wind down the rest. Credit Suisse’s Swiss unit will be carved out and run as a separate entity. The investment bank will be closed. JPMorgan analysts had recently put the cost of doing so at roughly $11 billion. Meanwhile FINMA will shop Credit Suisse’s asset-management unit around to possible suitors.
The rest of the world is worried. U.S. Treasury Secretary Janet Yellen, in calls with Keller-Sutter, wonders whether bailing in the bonds and offering an SNB backstop will accelerate the bank run, rather than end it. Her opposite number in France, Bruno Le Maire, is more forthright: nationalise it today, or sell it to UBS, he advises. This is not the time for a financial experiment.and indicators of financial stress are flashing amber. Still, she wonders if the warnings are overblown.
The finance minister knows this decision will define her career. Will she go down in history as the person who started the great banking crisis of 2023? Or will Switzerland become the first country to show it’s possible to resolve a systemically important bank? Keller-Sutter takes a deep breath as she picks up the phone to update Swiss President Alain Berset: Credit Suisse is going into resolution.We’ll never know what would have happened if Swiss policymakers had followed this path.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Breakingviews - Credit Suisse’s corpse drags on NomuraThe $12 billion Japanese bank’s net profit plunged 76% year-on-year to 7.4 billion yen ($55 million) in the three months ending March. That undoes a decent recovery trend and pushes the fiscal year’s earnings down by a third. Return on equity fell to a parlous 3.1%, far below the 8%-10% target. Like peers, it is feeling the pain of the Silicon Valley Bank crisis and Credit Suisse’s collapse. And Nomura , as with Goldman Sachs , is ill-positioned to benefit from rising lending rates as much as commercial banks are; both investment-banking firms posted a 5% decline in net revenue in the most recent quarter.
Baca lebih lajut »
UBS hit by old toxic debt costs ahead of 'hard' Credit Suisse taskUBS said on Tuesday it had set aside more money to draw a line under its involvement in toxic U.S. mortgages, halving its first-quarter profit as the bank girds itself for the 'hard' task of swallowing fallen rival Credit Suisse .
Baca lebih lajut »
UBS Gets to Work Selling the Swiss on Its Credit Suisse DealFor UBS to maximize its returns for shareholders from Credit Suisse, it has to first persuade the public on its merits, writes PaulJDavies
Baca lebih lajut »
New Mortgage Rules to Raise Costs for High-Credit Homebuyers, Reduce Penalties for Low CreditHomebuyers with high credit scores may pay higher mortgage rates, and those with low scores may see lower ones, due to a new federal policy. See potential bias and similarities in coverage from FoxBusiness, USATODAY and Newsweek: Housing Mortgage
Baca lebih lajut »
Breakingviews - New UBS investor pitch fits better than old oneUBS’s old strategy under former CEO Ralph Hamers was safe but not particularly rewarding. Its new one under returning boss Sergio Ermotti is exactly the opposite. There’s much for shareholders to worry about in the emergency rescue of Credit Suisse . But UBS’s slowing growth makes cost-saving dealmaking the natural next step.
Baca lebih lajut »
Breakingviews - Debt crisis is a scary white swan for US economySometime between June and July, the United States will run out of cash. That will be President Joe Biden’s first major test since announcing his run for a second term in the White House today. If Democrats and Republicans can’t agree to lift the government’s borrowing limit, the country could suffer an unprecedented and catastrophic default on its debt. History suggests lawmakers will come to a last-minute deal, but even a close call could upend fragile markets. After bank failures and heightened volatility, the last thing that Biden – and the U.S. financial system – needs is an entirely avoidable crisis.
Baca lebih lajut »