The troubles at Credit Suisse dragged down the shares of stalwart European lenders such as Deutsche Bank, BNP Paribas and Societe General on Wednesday. Bank shares recovered Thursday.
Similar questions are being raised about what the U.S. Federal Reserve will do at its rate meeting next week. European banks also observe international rules that raised the amount of ready cash they had to keep on hand to cover deposits.But all that hasn’t kept the U.S. banking blow-up from looming large for the ECB. New evidence of concern flared Wednesday when shares in European banks fell 8.4%.
Credit Suisse, whose troubles predate the collapse of Silicon Valley Bank, then turned to the Swiss National Bank for up to $54 billion in credit to stabilize its finances,Nicolas Veron, a banking expert at the Bruegel think tank in Brussels, said European banking supervision is much stronger than in 2007 when banks were “dramatically undercapitalized and poorly supervised.” He also said that the ECB has been carefully studying the impact of higher rates on its banks.
So essentially the banks that failed and possibly others, made loans up or near that assets size to drive up profits. How is that not illegal? This is why they tried so hard to repeal Dodd-Frank. Amerikkka Greed.
cornered.
After that, Dow Jones turned away.
mi mi mi mi.jpg
Yea because no matter what happens, the world knows we will never let a bank fail.
“Policy has to be adaptive to the source of inflation,” said Stiglitz. “Raising interest rates may exacerbate some aspects of the problem because it will impede the investments we need to address the remaining supply-side bottlenecks.”
it's getting complicated
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Reuters - 🏆 2. / 97 Read more »
Source: CNBC - 🏆 12. / 72 Read more »
Source: cnni - 🏆 326. / 59 Read more »