Regulators' massive response indicates a financial system in the early stages of distress.
The S&P 500 SPX has rallied since Silicon Valley Bank collapsed last month, but stock investors are kidding themselves if they think the banking crisis is over.
In fact, the current crisis looks far more serious than is evident. This warning comes from a newly published study of 800 years of banking crises, which suggests that both the U.S. economy and stock market will be below-average performers for some time to come. One data point that is particularly revealing about the current crisis’ severity is the magnitude of banking regulators’ recent interventions. For example, the combined value of the emergency lending that the Swiss National Bank extended to Credit Suisse CS and to UBS UBS UBSG , which acquired Credit Suisse, is equivalent to more than 25% of that country’s GDP. That’s one of the biggest interventions in the professors’ entire database; the median intervention’s magnitude, for example, is just 1.
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Norwegian wealth fund seeks Credit Suisse boardroom shake-upNorges Bank Investment Management will vote against the re-election of Credit Suisse Chair Axel Lehmann and six other directors at the Swiss lender's annual general meeting on Tuesday, the Norwegian wealth fund said on its website.
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Credit Suisse takeover hits heart of Swiss banking, identityThe UBS takeover of embattled rival Credit Suisse has shaken Switzerland's self-image and dented its reputation as a global financial center, analysts say, warning that the country's prosperity could grow too dependent on a single banking behemoth.
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UBS may cut up to a third of jobs after Credit Suisse takeover, Tages-Anzeiger reportsThe bank created by the UBS takeover of Credit Suisse is poised to reduce its workforce by 20-30%, Swiss daily Tages-Anzeiger reported on Sunday, citing an unnamed senior UBS manager.
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The Fatal Flaw in Credit Suisse’s Last-Ditch Attempt to Save ItselfCredit Suisse Group’s new-look investment bank, CS First Boston, was supposed to help salvage the lender. Instead, it may have hastened its fall.
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Swiss prosecutor investigates Credit Suisse takeover -FTSwitzerland’s Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse by UBS Group , the Financial Times reported on Sunday.
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Swiss prosecutor probes Credit Suisse takeoverSwitzerland's Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse by UBS Group , the office of the attorney general said on Sunday.
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