Citi economists said, “We have long been discussing our view that China can be a major growth hedge this year – if anything, recent global banking stresses perhaps have strengthened this thesis.” The decision by the People’s Bank of China to cut its required reserved ratio showed “reassurance of policy support amid global volatilities,” Citi … Read more
Fed chair Jerome Powell at yesterday’s news conference. Photo: Alex Wong/Getty Images On Wednesday afternoon, the Federal Reserve didn’t just raise interest rates for the ninth straight time in the face of a banking crisis. It also affirmed that its plans for the year remain more or less intact, and that nearly all of its … Read more
Regional bank stocks looked set to rebound early Thursday as the market digested remarks made by Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen. Citigroup (ticker: C) CEO Jane Fraser added her vote of confidence into the mix, as she said the banking system is “pretty sound,” at the Economic Club of Washington … Read more
“The AT1 instruments issued by Credit Suisse contractually provide that they will be completely written down in a ‘viability event,’ in particular if extraordinary government support is granted,” FINMA said in a statement Thursday. “As Credit Suisse received extraordinary liquidity assistance loans secured by a federal default guarantee on 19 March 2023, these contractual conditions … Read more
Regulators and officials across the European Union have been nervous about potential contagion to their banking sectors after the recent turmoil in the United States. However, they think the U.S. should learn from some of the regulatory works put in place in the euro area. Basel III is a set of reforms that strengthens the … Read more
Federal Reserve Board Chairman Jerome Powell holds a news conference following a Federal Open Market Committee meeting at the Federal Reserve on March 22, 2023 in Washington, DC. Alex Wong | Getty Images News | Getty Images This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors … Read more
The bank has hired advisors Lazard (ticker: LAZ) and McKinsey & Co. as it explores options including a sale or trimming assets, a person familiar with the matter told Barron’s. News of Lazard’s involvement was reported earlier by The Wall Street Journal. Wall Street CEOs and U.S. officials are exploring the possibility of government backing … Read more
US Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed budget request for 2024, on Capitol Hill in Washington, DC, March 16, 2023. Andrew Caballero-reynolds | Afp | Getty Images Treasury Secretary Janet Yellen said Tuesday the government is ready to provide further guarantees of deposits if the banking crisis worsens. … Read more
UBS agreed on Sunday to buy its embattled domestic rival Credit Suisse for 3 billion Swiss francs ($3.2 billion) as part of a government-backed, cut-price deal. Swiss authorities and regulators helped to regulate the agreement, which came amid fears of contagion to the global banking system after two smaller U.S. banks collapsed in recent weeks. … Read more
It’s not just regional bank shares that have been hit by the recent banking crisis — large-cap bank stocks have also tumbled. But some analysts think the slide is overdone, and retail investors flocked to buy the dip in the biggest, traditional American banks last week. Still, there may be more room to run. JPMorgan … Read more