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.
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.
UBS is acquiring a troubled Credit Suisse,while three mid-size US banks have failed or been bailed out. Now investors are worried about the leverage of non-bank lenders.
Turmoil in the global banking sector,hotter-than expected inflation data,and renewed hopes for a dovish Federal Reserve has the cryptocurrency reaching levels not seen since June.
UBS is seeking $US6 billion costs to be covered by the Swiss government,if it buys rival Credit Suisse.
The harbour city escaped being classified as property bubble territory in a global real estate bubble index,but was still considered well above fair value.
Credit Suisse will survive but with history as a guide,it should have known better. And as economic conditions worsen,it won’t be the only wealth titan left exposed.
Victoria reaped a remarkable property tax windfall that bolstered this year’s budget but experts believe there could be leaner times ahead.
If,as expected,Woodside swallows BHP’s petroleum division the miner’s shareholders will soon have oil and gas scrip in their portfolio. They need to start thinking if it should stay there.