Swiss authorities imposed curbs on bonus payments for Credit Suisse employees,a move that will penalise bankers after a multi-billion-franc state rescue of the bank.
Bets on a US Federal Reserve 50 basis point rate rise at the start of the month have been dramatically altered by the collapse of two mid-sized US banks and troubles at Credit Suisse.
A key element of Credit Suisse’s ‘rescue’ was a Swiss regulator’s decision to declare $26 billion of the bank’s bonds worthless. Other central banks are scrambling to distance themselves.
The Federal Reserve entered 2023 focused on a central goal:wrestling down the rapid inflation rate. But over the past two weeks,that job has become a lot more complicated.
For decades,Switzerland has sold itself as a haven of legal certainty for bond and equity investors. The collapse of Credit Suisse has raised some hairy questions.
As the demise of Credit Suisse reverberated from Sydney to New York City on Monday,workers were given a clear message:get back to work.
Australian investors sent the sharemarket lower on Monday,despite the fate of Credit Suisse having been decided,extending on last week’s losses.
The Reserve Bank faces a clash of priorities over coming weeks:deal with banking turmoil in Europe and America,or drive down inflation?
Credit Suisse,once one of the stalwarts of the global financial system,is no more. While the end came quickly,the decay was years in the making.
UBS has,reluctantly and with a lot of help from the Swiss government,come to Credit Suisse’s rescue.
Swiss banking giant UBS agreed to buy Credit Suisse in a historic,government-brokered deal aimed at containing a crisis of confidence that threatened to spread across global financial markets.