March 18 (Reuters) – Credit Suisse started a successful weekend after some rivals became cautious about dealing with the ailing Swiss lender and its regulators urged it to merge with UBS AG.
At least four major banks, including Societe Generale (SOGN.PA) and Deutsche Bank (DBKGn.DE), are restricting new business with Credit Suisse (CSGN.S) or its securities, five sources told Reuters.
DEVELOPMENTS
* Credit Suisse shares rose 9% in after-market trading after the Financial Times reported that UBS was in talks to acquire all or part of its Swiss rival as the two banks’ boards met separately over the weekend .
* SVB Financial Group (SIVB.O) filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets days after regulators acquired its former Silicon Valley Bank unit.
* Credit Suisse saw more than $450 million in net outflows from its U.S. and European managed funds Monday through Wednesday, Morningstar Direct said.
* Moody’s downgraded the debt of First Republic Bank (FRC.N). Before the announcement, the bank’s shares plunged nearly 33%, despite a $30 billion deposit bailout.
Customers wait outside a branch of Silicon Valley Bank in Wellesley, Massachusetts, U.S. March 13, 2023. REUTERS/Brian Snyder
* The US Federal Deposit Insurance Corp (FDIC) is considering steps to facilitate takeovers of Signature Bank and Silicon Valley Bank, a source told Reuters.
* US President Joe Biden said the banking crisis had calmed down after the collapse of Silicon Valley Bank and Signature to reassure investors and depositors. He called on Congress to give banking regulators more power.
* A senior official at the People’s Bank of China said the collapse of the Silicon Valley Bank (SVB) shows how rapid monetary policy changes are having an impact, state-run newspaper Shanghai Securities News reported.
MARKETS
* Investor sentiment remained fragile on Friday, putting pressure on global equities, while gold prices posted their biggest one-week rally in three years. The dollar slipped and government bond yields fell.
* Banking concerns sent US markets on a dizzying ride this week.
* As concerns for banks mount, investors seek protection from a market crash
Compiled by William Mallard and Kirsten Donovan
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