36 Burst results for "Credit Suisse"
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
A highlight from 1401: FIDELITY: Bitcoin Will Hit $1 Billion Per Coin By This Date
"In today's show, we're going to be discussing Bitcoin ignoring the CPI and FTX as the price action hit us a September high of $26 ,600 as the bulls are back in control. We'll also be discussing the court approving the sale of FTX digital assets, meaning the assets will be sold off weekly with special handling for Bitcoin and Ethereum and insider affiliate tokens. Also breaking news just in, Congressman Tom Emmer launches an anti -surveillance state act with 49 Republicans in a new push against CBDCs, central bank digital currencies. Also the SEC chairman Gary Gensler says crypto is a field rife with fraud, abuse, misconduct. It's daunting. We'll also be discussing breaking news, $800 billion asset manager Deutsche Bank partners to offer Bitcoin custody for institutions. Let's go. It virtually means that the bank can now hold crypto directly for its clients. Also in today's episode, we'll be discussing, can the Bitcoin price achieve fidelities? $1 billion price target by 2038. That's right, the $4 .5 trillion asset manager is predicting that one Bitcoin will eventually be worth $1 billion per coin. We'll also be taking a look at the overall crypto market, all this plus so much more in today's show. Yo, what's good crypto fam? This is first and foremost, a video show. So if you want the full premium experience with video, visit my YouTube channel at cryptonewsalerts .net. Again that's cryptonewsalerts .net. With that being shared fam, welcome to everyone just joining us. This is pod episode number 1401. So let's fricking go. Today is September 14, 2023 and the crypto market is back in the green. Shout out to everyone out there in the live chat. It's good to see the entire Bitcoin fam. So yeah, let's kick it off with our market watch. As you can see, Bitcoin is trading back above $26 ,600. We also have Ether trading back above $1 ,600 and virtually most all the major cryptos are in the green minus BNB barely in the red. And checking out coinmarketcap .com, the current crypto market cap sits just north of $1 trillion with $28 billion in volume in the past 24 hours, but the Bitcoin dominance at 49 .2 % and the Ether dominance at 18 .6%. So yeah, checking out the top 100 crypto gainers of the past 24 hours. We have Axly Infinity leading the pack trading at $4 .73 up 11 % followed by ThorChain up 5 .5 % trading at $1 .65 followed by Conflux up a modest 5 % trading just above or I should say just shy of 12 cents. And checking out the top 100 crypto gainers for the past week, we can see virtually everything is in the green minus a handful including Scamcoin FTT down 5%. Axly Infinity leading the pack here as well up 12%. And as you can see, the alts are pumping. That's what's up. How many of you took advantage of this recent price dip? Let me know. And how many of you are gonna be hodling into the next Bitcoin halving, which is roughly six months out around the corner. Holla at your boy chat. I appreciate the interaction. At the end of the show, I'll be reading everyone's comments out loud. And how you doing today for Christ's sake? Holla at your boy. Don't be a stranger. And with that being shared, now let's dive into today's Bitcoin technical analysis. Check out the charts and what is popping with the King crypto. Here we go. Bitcoin hit new September highs after the September 14 daily close as markets digested macroeconomic as well as crypto. Industry news, which you can clearly see here in the Bitcoin one hour candle chart. Now data from Cointelegraph and TradingView tracked the Bitcoin price highs of 26 .5 over on Bitstamp and Bitcoin had shaken off the higher than expected US CPI the day prior, which we covered here in the show, maintaining that 26 ,000 support. Subsequent confirmation that the defunct exchange FTX had received legal permission to liquidate its remaining assets likewise failed to dent Bitcoin's comparatively solid intraday performance. And a little later in the show, I'll be sharing that ruling directly coming from the courts in regards to the FTX assets being sold. Now coming up to the range highs and once we flip these levels, we can look to finally get into a safe position and long since popular crypto trader, Crypto Tony and fellow analyst, Dan Crypto Trade suggests that the overall Bitcoin market dynamics have changed versus the period of weakness seen around the monthly close. Quoting this gentleman here, market feels different this week. The dips are being bought up relatively quick and while the price keeps sweeping highs, it keeps crawling itself back and leaving the lows untouched. The spot bid is also stronger than the past few weeks, might be wrong, but I am optimistic. Let me know if you agree to disagree with the analyst and additional analysis predicts that the longer term Bitcoin price breakout should US regulators approve a Bitcoin spot ETF or which we all know is inevitable over the coming months. He also says that BTC .d is still holding on the previous range high, which is the Bitcoin dominance chart and in the CHOP region, but ultimately says, I think this would go higher in case of a Bitcoin ETF approval one day. Yeah, that's right. They can only push it back and delay it for so long. I believe the next day they have to acknowledge it is in October and more than likely Gensler and the SEC is gonna push it back till next year. That's just my two Satoshi's. Let me know your thoughts, fam. Now more cautious was Trader Sku who referenced the on -chain volume prime to cool once more after the relief rally, quitting him here. The daily structure looks fairly good here and decreasing volumes. So could definitely be looking towards a relief rally before lower as the commentary read, noting the Bitcoin was still holding the key 25 ,000 level. Now with Bitcoin up just 1 % month to date at this time, Bitcoin is nonetheless on course for its best performing September and years. As we know, it's usually September, pun intended. According to data from monitoring resource CoinGlass, the last time Bitcoin gained in September was all the way back in 2016. That's like holy moly, seven years ago, fam. That year was its best on record at a modest 6 % while its biggest red September bear month was two years prior when it lost a whopping 19%. Talk about total bloodshed, right, fam? Now in 2022, Bitcoin shed 3 % before climbing another 5 % in October, which is a popular month amongst the bulls who informally referred to it as Uptober. So hopefully, God willing, we have another Uptober here right around the corner as we're already halfway through with September. With that being shared, fam, let me know your thoughts and outlook on the current landscape of the crypto market. Do you feel we're likely to correct lower or do you think we'll continue rising back towards that $30 ,000 level psychological resistance? Let me know, chat. And now let's break down our next story of the day and discuss the latest judgment coming from the courts regarding the FTX asset sales. Here we have it. This is just in, the Delaware Bankruptcy Court approved the sale of FTX digital assets. We have Judge John Dorsey who made the ruling at a hearing yesterday, September 13th. Major changes were made to the draft order authorizing the sale the previous day. Now as you know, there's been a lot of FUD of people talking about all the assets, billions of dollars worth of crypto is gonna get dumped and it's going to wreck the market. Well, there are some caveats, so it's important I share them here. FTX will be allowed to sell the digital assets excluding Bitcoin, Ethereum, and certain insider affiliated tokens in weekly batches through an investment advisor under pre -established guidelines. There will be limits of $50 million for the first week and $100 million in subsequent weeks. There will be an option to increase the limit with prior written approval of the creditors committee and ad hoc committee or to raise the limit to 200 million weekly with the approval of the court. So they can't dump it all at one time which is good for the bulls, right? Now Bitcoin and Ether and insider affiliate tokens can be sold through a separate decision by FTX. After 10 days notice to the committee and the US trustee, the US trustee is appointed by the US Department of Justice. Now I'm curious what those insider affiliate tokens are. If I was to guess, I'd guess FTT, that scam coin, Bankman Fried created out of thin air and I'd also throw Solana in there, but what are your thoughts, fam? Let me know. Those sales will also be conducted through an investor advisor. Information about the sales will be subject to professionalize only and confidentially restrictions with a redacted version accessible to the public. The sales will be subject to written objection by the committees and the US trustee. And in that case, the sales will be delayed until the objections are overcome or the court orders a sale. Quoting Bak Ubu here, FTX adapts crypto sale plan to address the US government concerns. FTX, the bankrupt crypto exchange is making changes to its proposal for selling billions in crypto assets. That's right. And I just broke down ultimately what you need to know. The conditions on the latter sales were added in the draft submitted September 12th, a couple of days ago. They were regarded as cautionary moves to ensure the market stability during the influx of FTX assets. Some observers noted that the sales will represent only a small portion of the trading volume and may not have a heavy impact. But according to a recent shareholder update, FTX has $833 million worth of Bitcoin and Ethereum collectively. FTX can enter into hedging arrangements using Bitcoin and ETH with the private approval of committees and can use them for staking according to the guidelines. The FTX token, as we know, is FTT, cannot be sold without further court authorization. Well, good for them. Glad to hear they're not authorized to sell their scam coin and dump it onto the market. That's definitely a good sign, wouldn't you think? Now let's break down the next breaking story of the day. Gotta give respect and credit where it is due. We have US Congressman Tom Emmer who made a very strong anti -CBDC stance and we know that's the central bank digital currencies which the central bankers are gonna be rolling out and I know their pilots have already began rolling out around the world. So let's discuss this anti -CBDC push because I'm all for anti -CBDC. That's why I promote Bitcoin every day here on the pod. Bitcoin is the antidote to the CBDC. Let me know if you understand what I'm saying. Now Congressman Tom Emmer is leading the reintroduction of the bill that aims to prevent the Federal Reserve from creating a digital dollar. God bless him. Emmer says on the social media platform X that if it isn't designed to emulate cash, then a CBDC would dismantle the American's right to financial privacy while also emboldening the administrative state. Facts. The majority whip says that the new bill attempts to prohibit the Fed from issuing a retail CBDC while protecting innovation and any future development of true digital cash. This bill puts a check on unelected bureaucrats and ensures the US digital currency policy upholds our American values of privacy, individual sovereignty and free market competitiveness. The administration has made it clear. President Biden is willing to compromise the American people's right to financial privacy for surveillance style CBDC. I don't believe in compromising American rights. That's the bottom line. If not open, permissionless and private like cash, a CBDC is nothing more than a CCP, which we all know stands for, right? Style surveillance tool that will be weaponized to oppress the American way of life. Preach. I couldn't have said it any better myself. I stand by what he is saying because I know it's fact. Now while official, the concrete plans for the CBDC haven't been released by the US government as opposition has already formed, which is a good sign. We also have US candidates who are running for the presidential election next year in 2024, including current governor of Florida, Ron DeSantis, who is running as a Republican. And we also have Kennedy Jr. who is running as a Democrat who are both pro Bitcoin and anti CBDC. So we must stand strong and oppose these weapons of financial mass destruction, which are better known as CBDCs. So again, much respect to the congressmen and those making this push. Now last month we also had Ohio Republican Warren Davidson said the CBDCs pose an existential threat to the Western civilization and was committed to fighting against them. Davidson said that he wants to prohibit the CBDCs because they threaten other digital assets like Bitcoin and impede the development of the beneficial financial technology. Facts, quitting him here. Central bank digital currency poses a serious threat, tall digital assets, as I said, at flyover FinTech. Many people wrongfully conflate even Bitcoin with a CBDC. Ignorance is bliss, huh? At least most agree that CBDC is evil, the financial equivalent of the Death Star. Great reference to Star Wars there. Don't become an accomplice to anyone designing, building, testing, developing, or establishing CBDC. Banning a CBDC is essential to the American's FinTech future. So there you have it. What are your thoughts on CBDCs if they roll out, which more than likely they're going to eventually at a theater near you, are you going to participate in them, is the million dollar question. What if they give you a stimulus and they promise you, we're gonna give every American $5 ,000 of this digital dollar, AKA CBDC, central bank Ponzi scheme currency. What are you gonna do about it? I say just say no to Bitcoin, or I'm sorry, just say no to CBDCs and fight it with the antidote, which is Bitcoin, by simply stacking stats today and preparing yourself so that you can fight the tyrants who are trying to take over our country. Just saying, fam, let me know if that resonates with you. And with that being shared, now let's break down our next story of the day and discuss the latest with Mr. Gary Gensler, the chairman of the SEC and what they recently shared with Congress regarding cryptocurrencies and enforcement. Here we go. The chairman of the SEC, everyone's favorite huckster, Gary Gensler talked about cryptocurrency during his testimony before the US Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, two days ago. Reiterating his views that most crypto tokens are securities, Gensler told the lawmakers without prejudging any one token, the vast majority of crypto tokens likely meet the investment contract test. Given that most crypto tokens are subject to the security laws, it follows that most crypto intermediaries have to comply with the security laws as well, quoting the chief right here. In terms of crypto, I've been around finance for 44 years now, and I've never seen a field that is so rife with misconduct. It is just, it's daunting. He further described the crypto industry right now. Unfortunately, he says there's significant noncompliance and it's a field which is rife with fraud abuse as well as misconduct. Now the Senator Bill Hagerty asked Gensler during the hearing what the SEC needs to see from issuers to approve a Spot Bitcoin ETF. Wouldn't you say that's a great question? Following the recent court ruling in favor of the grayscale investments, now the court found that the securities regulator, denial of grayscale Spot Bitcoin ETF app, was arbitrary and that the SEC Chairman Gensler replied with the following, we're still reviewing that decision. We have multiple filings around Bitcoin ETF products, so it is not just the one you mentioned, but there's multiple others. We are reviewing them and I am looking forward to the staff's recommendations. So there you have it. How do you feel this will likely play out regarding the regulators and crypto choke point 2 .0 as it continues? Do you think it'll keep pushing innovation outside the United States? Or do you feel that it's just a matter of time and Gensler's no longer gonna be able to push back these deadlines for the SEC approvals? Because we all know once the Spot Bitcoin ETFs get the green light from the regulator, it's game on. There's literally trillions upon trillions of dollars right now sitting on the sideline just waiting for that freaking approval. And if it wasn't for the SEC, we'd already had a Bitcoin Spot ETF a decade ago because that's how long they've been denying them, right? In fact, the very first Bitcoin ETF application was submitted by the Winklevoss twins of the Gemini exchange literally over a decade ago. And while they keep approving these futures ETFs which aren't in the investors best interest, but to keep pushing back the Spot ETFs which benefit everyone makes no logic except they're doing what they do because that's what they do and let's leave it at that. And with that being shared, fam, now let's break down the latest breaking news regarding Deutsche Bank. This is big news coming from another major institution and then I'll be breaking down the $1 billion fidelity price prediction for the King Crypto. That's right, they're saying that one Bitcoin will eventually be worth $1 billion per coin and then we'll dive into our live Q &A. So yeah, here we go, breaking news just in. The German bank, Deutsche Bank, was one of the handful of companies to invest in a $65 million Series B fundraising round for tourists in February of this year. The company offers enterprise -grade infrastructure to issue managed custody and trade, cryptocurrencies, tokenized assets, as well as NFTs and other digital assets. Let's go. Now according to Taurus' co -founder, Lamin, the partnership underwent a thorough and very detailed due diligence process before the German bank decided to use its infrastructure services, quoting them here. It started end of 2021 and ended somewhere in 2022. We won the deal a couple of quarters ago and as previously reported, Deutsche Bank has been brewing plans to offer crypto custody and trading services to its clients over the past three years, since 2020. The bank most recently applied for a digital asset custody license from Germany's financial regulator, Baffin, in June of this year, as it continues plans to offer its customers access to crypto markets as well as assets. Now brain, aka, confirm, whoever that is, the agreement is global in scope with tourists providing custody and tokenization tech in line with the local regulatory requirements. Let's get it. Good stuff. And I appreciate the live chat right now. I am tuned in and checking you guys out. Much love. Any questions, feel free to drop them. And again, at the end of our premiere story with Fidelity, we're gonna be reading those comments out loud. Anyways, announcing the partnership, Deutsche Bank Global Security Services head, Paul Maly, said that crypto space is expected to grow to trillions of dollars of assets and is likely to become a priority for investors and institutions. Preach, that's a given, right? Meanwhile, Deutsche Bank's asset management arms, DWS Group, had reportedly been in discussions to invest in two different German -based crypto firms in February of this year. This includes crypto exchange -traded product provider, Deutsche Digital Assets, and market maker, platform, Tradius, Deutsche Bank Singapore, and Memento Blockchain also recently completed a proof of concept called Project DOMA, which stands for Digital Asset Management Access, which allows for the management of digital funds and tokenized securities. And founded in Switzerland in 2018, Taurus' Series B round was led by Credit Suisse and included the likes of Deutsche Bank alongside Arab Bank Switzerland, indicating major interest from traditional financial banks. Let's go. The announcement of its Series B round also clearly outlined Taurus' aim to serve tier one banks in Europe. And they also told Cointelegraph that the platform serves close to 30 banks, with most deals going beyond cryptos to including tokenization of equity debt as well as other products. Deutsche Bank is set to offer customers crypto custody options through a partnership with the cryptocurrency infrastructure platform, Taurus. Now obviously, this is a major, major deal when you have a $800 billion asset manager, such as Deutsche Bank, partnering to offer Bitcoin custody for institutions around the world. The bank can now officially hold crypto directly for their clients. So there we have it. Another one bites the dust. And now for the moment you have all been waiting for. Let's discuss this $4 .5 trillion asset manager, Fidelity, which I believe, correct me if I'm wrong, is the second largest asset manager in the world, next to BlackRock that controls over 10 trillion in assets under management. They're predicting, their head of global macro, Julian Timmer is predicting that the Bitcoin price hit $1 billion per coin. So let's break this down, shall we? And then we'll dive into our live Q &A. Here we go. Fidelity's prediction for Bitcoin. We have Julian Timmer, director of global macro at Fidelity, put forth the notion that Bitcoin, the king crypto, has the potential to reach a value of $1 billion per BTC in roughly two decades, specifically around the year 2038. So there you have it. Right now we're in 2023. So what is that? Roughly like 15 years out. To supply the forecast, Timmer employed a combo of models and charts with particular focus on the stock to flow model and his own demand model. These analytic tools form the foundation for his primary prediction. And speaking of stock to flow, massive shout out to Plan B, creator of the Bitcoin stock to flow model. Now he believes, along with the stock to flow, the data, which doesn't lie, that the Bitcoin price is subject to hit between 100 ,000 and a million dollars after the halving in 2024. Let me know if you agree or disagree with the stock to flow prediction. And now we'll get back to this analysis from Julian Timmer of Fidelity. The above demand model employs Metcalfe's law, and according to the numbers of its users, grows linearly, the network's value, or interfiends, the Bitcoin price, grows geometrically. This means that the utility of the adoption of Bitcoin are expected to grow more rapidly compared to its network of users, exchanges, ATMs, and participating retailers. Therefore, this model predicted that the Bitcoin price will reach $1 million, which is seven figures, by the year 2030. Now I'd also like to throw out there, we also have Cathie Wood of ARK Invest predicting a $1 million Bitcoin price by the year 2030. In fact, if you've been following my show, then you know her bear case scenario is over a quarter million per BTC in 2030, her base case is over 600 ,000, and her bullish case is $1 .48 million per BTC. There's other big analysts and financial institutions as well, just as bullish as Cathie Wood. So I just wanted to throw that out there that there's others in agreement with Jurien Timmer thus far on this Bitcoin price prediction. So yeah, in contrast, Timmer's stock to flow supply model noted the event of significant price surges during each halving event. Consequently, when considering this model in conjunction with the other factors, it foresees a Bitcoin price range of $1 million to $10 million for Bitcoin defined by the year 2030. Timmer's demand model is more inclined towards reflecting the bottom of the Bitcoin price. But on the other hand, the stock to flow model seemed to provide a better approximation for the peak of Bitcoin. However, it's worth noting that the disparity between these two models widened significantly beyond the year 2030, which is where things get interesting. The reason behind this gap is expected to be the changing value of the dollar, as many, many economists are anticipating the crash of the dollar in which Jurien Timmer is as well. So Timmer proposes that the value of the dollar undergoes fluctuations over time when compared to other traditional assets. For instance, if just $1 was invested into the stocks during the 18th century, its present -day value would be roughly $4 billion. You mean to tell me $1 invested into stocks in the 18th century is now worth $4 billion? That tells you everything you need to know about fiat currency, folks. Now similarly, Timmer implied that if $1 million was invested today, it can grow to $1 billion in just a span of 20 years. This further revealed that the purchasing power of the dollar has significantly reduced due to factors like inflation and depreciation, and let's not forget, money printer continued to go. Just saying. Thus, Timmer's statement implied that keeping a fixed amount of dollars for many years may lead to a reduced purchasing power due to the assets' changing value, and over the last few years, an increasing number of are companies taking over the $1 trillion market cap, and as a result, it's foreseeable that in the next two decades, the concept of a trillion -dollar valuation will become more common. Yes, right, so much that individuals themselves could be worth a trillion dollars or even more. The scale of numbers may even reach the quadrillion range. Like, whoa, so is this milestone still achievable for Bitcoin is the million -dollar question. So despite Bitcoin's historical growth, it had recently faced a significant setback. Bitcoin's network activity had diminished, and it had fallen behind in comparison to Cardano's network, for example, the number of active addresses in the Bitcoin market had experienced a notable decline when compared to the levels seen in 2021, but we also gotta note that we're currently in a bear market, past couple of years. We hit the cycle peak back in 2021, and we soared. Remember COVID era? Bitcoin dumped all the way down to like $3 ,500 range, and within a year, by the end of the fourth quarter of 2021, we hit that all -time high, which is the current high of $69 ,000. So this just goes to show you how fast Bitcoin can climb during a bull market, and we know the past couple of years have been bearish as all hell, right, especially 2022. We had the collapse of Terra Luna. We had the collapse of FTX being the second largest crypto exchange at the time. There was mass contagion. Everything was impacted. We dropped to a new cycle low of 15 ,700, but I think the bottom is past us. What's your thoughts, chat? Do let me know in the comments so I can read those out loud here in a little bit, but let's finish up this prediction. The higher network activity, like increased transaction volume or active addresses, is viewed as a positive indicator for the growing adoption for Bitcoin. This can create a sense of confidence amongst investors, potentially leading to the rise in demand and positive effect on the price action, and although Timur's prediction may be considered far -fetched and lacks empirical evidence, it doesn't completely dismiss the possibility of Bitcoin reaching such levels. The concept of de -dollarization has gained stature, shifting global attention towards alternative currencies. The shift in focus is expected to drive the demand for assets like golden crypto, such as Bitcoin, and with BRICS pushing for the fall of the dollar, the BRICS currency and Bitcoin are expected to garner continued momentum. So there you have it, fam. What are your thoughts surrounding this whopping $1 billion price prediction for the king crypto by the year 2038? Do you think it's realistic? And before we even got to that billion prediction, what about $1 million by the year 2030? Do you think this is realistic? Do you think this is a pipe dream? Do you think this is conservative? What's your honest thoughts? And where do you feel the dollar is likely to go over the course of the next few years? Do you think it will not even be in existence and will be replaced by the digital version, which is the CBDCs, central bank digital currencies that Congressman Tom Emmer and many others are warning you about? Let me know your honest thoughts. And don't forget to check out cryptonewsalerts .net for the full premium experience with video and to participate in the live Q &A. And I look forward to seeing you on tomorrow's episode. HODL.
Bloomberg Daybreak Europe
Fresh update on "credit suisse" discussed on Bloomberg Daybreak Europe
"% as we head into the Chinese Week a day. The Nikkei in Tokyo closed down slightly. On Wall Street, S &P Minis are up by two tenths. Nasdaq futures are three tenths higher. The latest details from Credit Suisse's report. For the first half of the year, they could report additional losses of as much as $2 billion for the third quarter. That will be something to watch as we continue to delve into the details of that report from Credit Suisse. Thanks for watching. Thanks for watching. As always, I'll be severing Trent in the UK after the water company announced plans to raise about a billion pounds gross proceeds in the UK. company around a $95 barrel down four tenths of 1 % WTI is a 10th higher at $91 on the currency markets the pound three tenths stronger after that revising upwards of GDP figures for the second quarter 120 22 40 against the dollar is where it's trading the bluebird dollar spot index is three tenths weaker as well after that the dollar is on track for the 11th straight week of gains the longest winning streak since 2014 for the back the euro at 210 stronger against the dollar today at 105 89 on bond markets we are seeing somewhat of a rally in bonds 10 -year german blood yield three basis points lower this morning 2 .89 % 10 -year treasury yield two basis points at lower 4 .55 % that's a Bloomberg radio business flash Stephen thank you so much for that update this morning a major gyrations in markets this month interest rates higher for longer shaken talks meanwhile we do have data upcoming today US income and spending data for August expected to shed some light on why the fed is more confident about engineering a soft landing joining us now is Marcello Carvalho global is head of economics at BNP Paribas good morning good morning I want to start with Europe is Europe getting the balance right between taming inflation and growth you've got anemic growth stubborn inflation it's never easy we do think however that the outlook for the real zone we'll feature stagnation we don't think it's going to be necessarily a big recession
AP News Radio
Credit Suisse investors sue after facing billions in losses
"A group of Credit Suisse investors have sued Swiss financial regulators after a government engineered takeover of the struggling bank by a rival UBS, left them with billions in losses. Lawyers say the investors are contesting an order by the Swiss financial market supervisory authority that wiped out about $17 billion in higher risk credits bonds as part of an emergency rescue last month. The deal prevented the downfall of Switzerland's second largest bank after its stock plunged and customers rushed to pull out their money, regulators have defended their decision, though, saying contracts for those higher risk bonds show that they can be written down in what they call a viability event. The investors suing hold about $5 billion in these bonds. I'm Charles De Ledesma
AP News Radio
Swiss lawmakers pick apart Credit Suisse woes ahead of deal
"Switzerland's parliament has opened a special session to scrutinize the state imposed takeover of Credit Suisse by rival UBS and possibly look at ways to avoid further financial blow ups. Lawmakers are expected to raise concerns about thousands of expected job cuts, discuss possible strengthening of bank laws and accountability for long troubled Credit Suisse, and look at state backed guarantees of over $100 billion aimed at holding the bank together until the mergers completed the debate could run for up to three days with expectations the lawmakers were in addition voice and need to iron out disagreements over the $3.25 billion fusion of the country's two banks, a thunderclap for a country that prides itself on finesse and ackermann in finance. I'm Charles De Ledesma
AP News Radio
Saudi National Bank chair resigns after Credit Suisse storm
"The chairman of Saudi national bank has resigned for personal reasons after his comments on Credit Suisse sent the firm's stock cratering. A filing on Monday on Riyadh's tadawul stock exchange announced Amr academia's resignation from the Saudi national bank shares of Credit Suisse had sunk over 30% after Al-Qaeda has announced on March 15 that its biggest shareholder of the Saudi bank would not provide more money to the Swiss lender, while he sought to clarify his remarks, they caused Credit Suisse shares to drop by around a third of their value of the time and fuel this ultimate collapse, the incidents further spooked international markets already reading from other bank collapses and high inflation brought on in part by Russia's war in Ukraine. I'm Charles De Ledesma
The Doug Collins Podcast
How History Can Inform Future Economics With Amity Shlaes
"Dad rather early in the 1930s. He didn't have a sense of the whole, you know, set up, but if he was to say, had lived another 15 years. And was looking at the 30s from the site of the perspective of the 40s maybe or at least, but what would you say because he was and I've heard you say this for all the fun and some other interviews, how do you think he would have approached or looked at what happened in the end of the beginning through Roosevelt in particular, the government interaction with the economy? Was you're posing a counterfactual, but it's a great question, sir, because policy the thesis of my forgotten man book, the truth is the government made it worse. In Coolidge's own lifetime, there have been a number of crashes. Serious panics of Wall Street worse than what we're seeing this week as bad as 2008 in terms of the market going down. And those responses were different to the response to the government under presidents Hoover and Roosevelt more importantly. So you probably want to say Coolidge would have reacted as his predecessors and authorities preceding him would have done. A good example there is and remember, there was no SEC. Right, right. And there was no fed up until the mid teens, right? So first of all, I would have said, I'm not sure that that's Washington's job. Do you hear the lawmakers today talking about the banks that are scrambling about signature? And so on and Credit Suisse, they would have said, well, that's happening, but it's not our job, but there are many, many crashes in what was the collective if you ask all the institutions that did exist and evaluate them. What was the collective leader response to a rough depression in the early 20s? Well, one, they doubled interest rates. That's interesting. Wait, you're not supposed to double interest rates in a downturn. That's what we're hearing on the radio this morning. Here we are in March 2023. And they cut the government back farther.
AP News Radio
UK central bank hikes rates like Fed amid financial turmoil
"Britain's Central Bank has hiked up interest rates once again to try to control rising inflation. The Bank of England decided to boost its key rates by a quarter percentage point to 4.25%. It is the 11th consecutive interest rate increase made by the UK's Central Bank despite concerns about the economic fallout from troubles in the global financial system. The decision by the bank's monetary policy committee came after the UK statistics agency reported a further rise in inflation to 10.4% in February before new inflation figures were released, many analysts expected the Bank of England to keep interest rates on hold after the collapse of two U.S. banks and troubles at Switzerland's Credit Suisse, Karen Chammas London
The Breakdown
Ram Ahluwalia Catches Us Up on Credit Suisse
"Where I want to start is sort of a little bit of a catch up on Credit Suisse. And so maybe first, we could talk a little bit about what happened over the last week. We're recording this on Monday. I think that's extremely important for people to know, because I think it'll come out on Wednesday and who knows what will transpire in the next 48 hours between them. But I think it would be really helpful to have sort of a short primer to help ground us in terms of understanding how much the things going on with Credit Suisse were credits we specific versus symptomatic of larger problems. And so maybe if we could kind of just start with, you know, what happened with Credit Suisse, you know, what the resolution was, and then maybe we can try to understand and piece through what the causality was. Sure thing. So let me frame it up. UBS and CS were the two top wealth managers in Switzerland, CES, sometime around September, October of last year, their share price took a dive as kind of floating around $3 or so. And the main issues there were around arca ghost, which was a hedge fund blew up that creditors had lending exposure to. And then also just a litany of issues around CS and compliance and open litigation around that. Now, fast forward to call it the last one or two weeks, CS started experiencing runs on the bank. They had deposit flight and the regulators were trying to broker some kind of transaction with UBS and CS was also in a parallel path looking to raise equity capital. So their largest shareholder, which is Saudi Arabia, declined to invest more than their 10% ownership interest in CS. They share that news, I believe it was Thursday of last week. And the reveal of that news caused further loss of confidence in CS and accelerator with the roles. So that was the principle event. That really accelerated the demise of CS. So what happened yesterday, there is an announcement that UBS will be acquiring select parts of credit Swiss.
The Breakdown
"credit suisse" Discussed on The Breakdown
"Dollar swap lines are provided by the Federal Reserve to 5 major central banks in Europe, Canada, England, Japan, and Switzerland. These allow those central banks to swap national currency for dollars on a short term basis on behalf of the commercial banks within their jurisdiction. The goal is to provide cheaper funding for dollar liquidity throughout the global financial system, which is screaming out for additional liquidity. Structurally using dollar swap lines is very similar to a foreign Central Bank showing up to the Federal Reserve's discount window, which is typically a sign of extreme liquidity distress. The rationale for providing this liquidity is that the alternative would be foreign central banks dumping their U.S. government bonds on the market to access the dollars that they need, causing further dislocation and volatility in the bond market. Swap lines are a permanent arrangement with these 5 major central banks, but they've been used very little since the first half of 2020. As you might imagine, the financial commentary on Twitter is split between the idea that this is sort of just business as usual. For example, Nick at The Wall Street Journal who's often seen as a proxy for what the fed thinks writes these swaps have been around for years. The fed lends dollars to foreign central banks, usually weekly with 7 day loans. But others see it as a more dramatic step. Mike Greene says fairly big deal in my humble opinion. By creating the same differential between U.S. and foreign banks as it creates between the two big to fail banks and other banks, the U.S. has put the onus on other sovereigns to guarantee USD deposits. Without continuous and unlimited USD swap lines, this is not possible. Zero hedge as you would expect is even more extreme, saying the fed has capitulated. Opening the swap line spigots is the first of many steps, trillions in liquidity coming see the COVID playbook. And a half assed steps now only guarantee much more liquidity will be needed down the road. Now, on Wednesday, I have an interview with a little bit of wealth, Ramallah, where we get much deeper into whether this represents an inflationary force, whether it's predicated on deflationary impulses, so look out for that. For now, like I said, Credit Suisse's nominally resolved, although the burden is now on UBS, and so people are watching credit default swap prices on UBS pretty closely. The curse of living through interesting times continues, but I am glad to have you here along for the ride. Until tomorrow guys be safe and take care of each other. Peace
The Breakdown
"credit suisse" Discussed on The Breakdown
"Let's take a little bit now though into this conversation around the bonds. Markets analyst Johannes borgen says CS confirmed shareholders will get 3 billion 81 holders zero. This won't go down very well as it's an obvious breach of the hierarchy of claims. Says the wipeout of CS's $17 billion AT one bonds is brutal and will lead to a tightening of liquidity for the sector. With a headline in Bloomberg saying JPMorgan, decision to write down Credit Suisse AT one could lead to contagion for wholesale funding costs across the sector. Now a different take comes from count dragula, great name, by the way, a macro trader on Twitter, who writes that this is perhaps less of a big deal than it seems. They write all of Credit Suisse's AT one was in the form of cocoa or contingent convertible bonds. The conditions of general cocos is that they would either get rid down or convert it to equity once a certain trigger is hit. Usually an amount of total capital. AT one should lose only after all equity capital is wiped out, honoring the usual hierarchy of losses. But this didn't happen in the CS merger with UBS. In the process of writing down assets, the bank fell below the key thresholds for tier one capital, and this triggered a write down in AT one assets. Since the company was taken over though, equity holders received a payment in UBS shares in return for relinquishing control to UBS. This was probably to satisfy the Saudis who received a non trivial recovery on their recent investment. Also, maybe to satisfy employees. The initial reaction to this is shock. Why invest in AT one if equity gets a payout before you? How will this affect other Euro AT one securities? Will investors dump them? The question is complex. Cocos and bail and regs in total are tough for investors. They introduced trigger risk and are almost impossible to price. There aren't many better solutions to the tail risk of banks failing, though. The terms of the AT ones weren't a secret. They were all the type that would write down rather than convert to equity. This made them almost guaranteed to be subordinated to equity. So why buy 81 at all anymore? These were issued at about 8% over the ECB rate, providing a big return in the low return world. Presumably they'll pay more in the future.
The Breakdown
Balaji Srinivasan Makes Million-Dollar Bets on Bitcoin Price
"All right guys, well, another busy weekend. If you were on Twitter, I'm sure you saw the frenzy of debate around balaji's $1 million Bitcoin bet. TLDR, balaji, srinivasan, who is the former coinbase CTO and just generally interesting thinker, he authored that book, the network state, which is also the name of his new podcast, and has been on this show before as well, has been what he has been ringing the alarm as he puts it around impending financial crisis. He is arguing that these bank failures are a direct result of fed policies, and he thinks it gets worse before it gets better. Now to put his money where his mouth is, he's taken at least two people up on a $1 million bet that Bitcoin reaches a $1 million per coin within 90 days. If that seems crazy to you, you are certainly not alone. That has been the standard response from people in the fin twit space and from traditional finance, but those who are in crypto don't quickly forget just how prescient biology's predictions around the COVID-19 pandemic were. Anyways, it's something I'm watching, but if you want more in depth on that, go check out the YouTube channel. I did a whole episode around it on Sunday. To the extent the story continues and it continues to shape debates, I may come back to that later in the week.
CoinDesk Podcast Network
"credit suisse" Discussed on CoinDesk Podcast Network
"Count dragula, great name, by the way, a macro trader on Twitter, who writes that this is perhaps less of a big deal than it seems. They write all of Credit Suisse's AT one was in the form of cocoa or contingent convertible bonds. The conditions of general cocos is that they would either get rid down or convert it to equity once a certain trigger is hit. Usually an amount of total capital. AT one should lose only after all equity capital is wiped out, honoring the usual hierarchy of losses. But this didn't happen in the CS merger with UBS. In the process of writing down assets, the bank fell below the key thresholds for tier one capital, and this triggered a write down in AT one assets. Since the company was taken over though, equity holders received a payment in UBS shares in return for relinquishing control to UBS. This was probably to satisfy the Saudis who received a non trivial recovery on their recent investment. Also, maybe to satisfy employees. The initial reaction to this is shock. Why invest in AT one if equity gets a payout before you? How will this affect other Euro AT one securities? Will investors dump them? The question is complex. Cocos and bail and regs in total are tough for investors. They introduced trigger risk and are almost impossible to price. There aren't many better solutions to the tail risk of banks failing, though. The terms of the AT ones weren't a secret. They were all the type that would write down rather than convert to equity. This made them almost guaranteed to be subordinated to equity. So why buy 81 at all anymore? These were issued at about 8% over the ECB rate, providing a big return in the low return world. Presumably they'll pay more in the future. For anything to change based on this contradiction, investors would have had to have thought of AT one as being anything different to equity. I don't think they did. In the case of a restructuring or failure, the probability that losses are big enough to wipe equity, but also small enough only to wipe equity is very, very low. Since the advent of cocos, everyone knows that these are just equity that pay a big coupon. This coupon still probably made them a better deal than equity over time. So, nothing should change, but the market isn't always that rational. Now, for a little bit of history, these sort of contingent convertibles, these AT ones were introduced after the global financial crisis in order to incentivize private recapitalization of European banks. These aren't a type of asset that exists in the U.S.. It gave banks an ability to offer an equity like raise that is treated like a bond in bankruptcy. The risk is that this resolution to Credit Suisse has thrown that idea in the trash can, and the concern is that there is now going to be zero appetite for putting risk capital into failing banks. Given that the rug was just pulled on an emergency capital raise avenue for all other G sips. In other words, this avenue for private recapitalization without government backing is largely gone. The implicit bed of AT ones and a whole bunch of the pricing structure was premised on the idea that G sibs would not be allowed to fail. One way to look at Credit Suisse is that we're now seeing that G subs will be allowed to sort of fail, with the outcome being that 81 holders are zeroed out. So if, for example, Deutsche Bank needs to raise 3 billion to span the next year, then their access to capital has been pretty significantly cut off by the Swiss national bank demonstrating that AT ones are first in line to be zeroed out. Now ultimately this might not matter, but I think it is worth keeping an eye on as we understand again. This shifting dynamics of where public and private begin and end. Ultimately, this was not an arrangement that really anyone was happy about, and it was pretty clear that the whole goal was to stop it from spilling over into larger market trouble. Indeed, on Sunday Night, shortly before Asian markets opened, global central banks announced coordinated action to quote enhance the provision of U.S. dollar liquidity. The move will make dollar swap lines available on a daily basis where previously they were a weekly offering. Dollar swap lines are provided by the Federal Reserve to 5 major central banks in Europe, Canada, England, Japan, and Switzerland. These allow those central banks to swap national currency for dollars on a short term basis on behalf of the commercial banks within their jurisdiction. The goal is to provide cheaper funding for dollar liquidity throughout the global financial system, which is screaming out for additional liquidity. Structurally using dollar swap lines is very similar to a foreign Central Bank showing up to the Federal Reserve's discount window, which is typically a sign of extreme liquidity distress. The rationale for providing this liquidity is that the alternative would be foreign central banks dumping their U.S. government bonds on the market to access the dollars that they need, causing further dislocation and volatility in the bond market. Swap lines are a permanent arrangement with these 5 major central banks, but they've been used very little since the first half of 2020. As you might imagine, the financial commentary on Twitter is split between the idea that this is sort of just business as usual. For example, Nick at The Wall Street Journal who's often seen as a proxy for what the fed thinks writes these swaps have been around for years. The fed lends dollars to foreign central banks, usually weekly with 7 day loans. But
CoinDesk Podcast Network
"credit suisse" Discussed on CoinDesk Podcast Network
"Don't quickly forget just how prescient biology's predictions around the COVID-19 pandemic were. Anyways, it's something I'm watching, but if you want more in depth on that, go check out the YouTube channel. I did a whole episode around it on Sunday. To the extent the story continues and it continues to shape debates, I may come back to that later in the week. Still, outside of that, all eyes were on the fraught negotiations to find a resolution for Credit Suisse. Now, why would this matter? And why does it matter enough to be the feature of the show? First of all, in the wake of the Silicon Valley bank run and signature shutdown and everything that we've seen from the U.S. banking sector and the other banking turmoil, even if it's far away and even if it's caused by totally different reasons, is going to get everyone on alert. But in the case of Credit Suisse, it's not just that. Credit Suisse is what's called a globally systemically important banker G sib. That's a bank who systemic risk has been determined to be such that if it were to fail, it would likely trigger a huge array of additional consequences and financial crises. There are different rules for G sibs, different Prudential regulation, different capital requirements, different surcharges, different stress tests, and so much more. The narrative around Silicon Valley bank had been that this was an issue of either a, crypto slash tech banks, and their concentrated deposit base, or B, a problem for smaller and regional banks that weren't backstopped by the fed in the same way that the too big to fail banks were. So understanding what the resolution of this GCP failure was going to be was a top of mind for anyone paying attention. On Sunday a deal did indeed come together and so today we're going to discuss that what it says about the banking crisis and what it suggests about the broader state of markets. At the end of the day, after all was said and done, Credit Suisse was sold to its largest Swiss competitor UBS. But it was done so with a gigantic backstop from the Swiss government. UBS will pay more than 3 billion to close the deal with the Swiss government kicking in around 9 billion to cover some foreseeable losses, as well as providing 100 billion in liquidity provisioning from the Swiss national bank. Late last week, the SMB was only willing to provide 50 billion in emergency liquidity while the UBS offer was reportedly only at $1 billion. Given how much changed in just a few days, it demonstrated how strategically important closing the deal was to the nation of Switzerland. The deal will see more than half a $1 trillion in Credit Suisse assets rolled into the operations of UBS, which already houses over 1 trillion in assets. This will size up UBS to a similar level to Goldman Sachs or Deutsche Bank. In announcements on Sunday, Credit Suisse called the deal a merger while UBS characterized it as an acquisition. And regardless of which label was attached the deal was urgent. Credit Suisse had seen as much as $10 billion in customer outflows per day last week, adding to the 100 billion withdrawn for the bank and the final quarter of last year. Pressure was on the Swiss government to announce a deal ahead of the opening of Asian markets on Sunday Night. Now I did a little bit of background last week, but for those who didn't listen to that, Credit Suisse was in the midst of a multiyear restructuring effort that had failed to make progress. Time after time over recent years, the bank found itself in the headlines, attached to scandals, including the collapse of Arcus capital, the greensill capital fraud, and a range of other corporate espionage schemes. To fund their restructuring Credit Suisse had raised $4 billion from the Saudi national bank in October, which granted the Saudis a 10% stake in the bank. Reports of behind the scenes government dealings over the weekend paint a picture of absolute panic. Swiss authorities were reported to be close to even considering a plan B in the form of nationalizing the bank. Finn must Switzerland's financial regulator said that Credit Suisse had experienced a crisis of confidence and that there was, quote, a risk of the bank becoming illiquid even if it remains solvent, and it was necessary for the authorities to take action in order to prevent serious damage to the Swiss and international financial markets. The Swiss government, in fact, took the extraordinary step of changing the law to ensure that the deal could go through an in an expedited manner without a vote from shareholders. Those shareholders will take a massive haircut with the deal marked up at a 60% discount the closing price for Credit Suisse shares on Friday. Bond holders will also take a massive loss as $17 billion worth of so called additional tier one bonds will be marked to zero. This write down will be the largest in the history of Europe's $275 billion AT one market. More on that in just a minute. Now the deal marks the first time a systemically important bank has failed since 2008, and it will leave a lasting mark on the Swiss banking system. The tone of public statements could not have been more clear this deal was done in hopes of stopping further panic throughout the global financial system. The UBS chairman said in a press release quote, this acquisition is attractive for UBS shareholders, but let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. It is absolutely essential to the financial structure of Switzerland and to global finance. In case that wasn't clear, global banking regulators from the U.S. of the UK had a hand in the weekend negotiations and public statements echoed the hope of this deal would calm the bank panic. Federal Reserve chair Jerome Powell and treasury secretary Janet Yellen issued a joint statement saying, quote, we welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. ECB president Christine Lagarde said I welcome the swift action and the decisions taken by the Swiss authorities. Their instrumental for restoring orderly market conditions and ensuring financial stability. The BOE also released a statement complimenting the quick action. Now one interesting little denouement this particular story. The Wall Street Journal reported that the Saudi national bank had an alternative deal on the table and at higher Mark. From WSJ, quote, on Sunday, there was a last stitch effort by a group including Credit Suisse's largest shareholder Saudi national bank to keep the lender alive, according to people familiar with the matter. The group made a rival proposal to inject around 5 billion into Credit Suisse. Under the planned Credit Suisse bondholders would have been fully protected. Swiss ministers rejected the offer outright according to the people. The shareholders wanted the same government backstops being offered to UBS such as the liquidity line, but were turned down. So in this context, you kind of have to ask what the Swiss interest was. Certainly they wanted to prevent larger global ramifications, but it seems pretty clear that they also wanted to keep CS as a nominally Swiss business rather than allowing the Saudis to take control of a geo strategically relevant asset, even though it might have been a better deal for shareholders. I think it's really important to give some context Swiss GDP is around $800 billion per year, while the Swiss national bank balance sheet is at around 884 billion after marking a $132 billion loss last year, which is the biggest loss in the central banks a 115 year history. In other words, this isn't exactly putting an entire nation's resources in the backstopping the financial sector, but it's not an insignificant portion with that $100 billion guarantee. I think it's really important to keep an eye on this sort of soft nationalization. I think one could make an argument that it has echoes of what's going on in the U.S. as the FDIC steps in to backstop all depositors at these early bank run banks rather than just up to their $250,000 limits. Obviously, I'm not characterizing that as a nationalization of the U.S. banking system, but it's clear we are in times where these lines between the public and private sector are up for grabs and subject to change very, very rapidly.
AP News Radio
UBS to buy Credit Suisse for $3.2 billion to rein in turmoil
"A global financial disaster may have been averted with the news that banking giant UBS is buying Credit Suisse for $3.2 billion. With two U.S. banks failing and concerns over Credit Suisse on the verge. After its largest investor stepped away, the president of Switzerland announces an emergency deal for UBS to buy up its troubled rival. UBS CEO Tom Kelleher. We are committed to making this deal a great success. There are no options in this. This is absolutely essential to the financial structure of Switzerland. And at the risk of being somewhat global, I think, to global finance. In the U.S., members of Congress are looking for ways to shore up the banking industry. Senator Elizabeth Warren on NBC's meet the press. Says the guardrails put into place after the 2008 meltdown have been repeatedly weakened. She says bank executives took advantage of that. Loaded up on risk that boosted their short term profits. They gave themselves huge bonuses and salaries and exploded their banks. Calling for controls to be returned. I'm Jackie Quinn
Tech Path Crypto
"credit suisse" Discussed on Tech Path Crypto
"What he's getting at here is how sticky is inflation and going forward. Because remember, pal is going to make his assessment based on what the data that's coming in on these kind of scenarios, which is exactly what fidelity is doing around how to deal with bonds and also some of these instruments that are drawing in around 4%. Again, this gets back to banks and why the banks are in the kind of position they're in, what we're seeing in terms of liquidity moving into some of these alternative assets. So all of this starts to play into a bigger picture of all this going forward. I wanted to play a little bit from this clip right here. This showed something we were showing from CTO Larsen, but let me play this. But Credit Suisse that actually right now potentially really starting to maybe be on the ropes. And I just heard this weekend from some very influential people that Credit Suisse is offering upwards of almost 7% returns that always worries me when we see those kinds of offers to major major liquidity operators. Oh yeah. What do you make of Credit Suisse in their current situation? It's over, okay? They will fail. They will need to be bailed out. They are a systemically important financial institution with about $13 billion of market capital when they actually need at least ten times that amount to properly capitalize their balance sheet. So this is the last, you're seeing a bank run occur in real time in the wealth management division of CS, okay? It used to be CS first Boston when I traded with Wall Street, but now they've taken the first Boston out of their name. They might have a 196 years of track record or whatever it was. That's commendable. But they're horrible risk managers. I mean, you saw the disaster that happened in their prime, their prime brokerage group. You've seen crisis crisis crisis after crisis. They are horrible risk managers. They will be bailed out or bailed in. You know what a bail in is? When the depositors lose their money and all of a sudden, like in Cyprus, that's what happens with the banking system. Now look, all right, so this was a piece that we did. I would recommend that you take a look at that, Greg boss video last week, because we were actually talking ahead of all of this turmoil that was happening within the banking industry, obviously Greg's insights on Credit Suisse, dead on. And when you look at what the scenario that's playing out right now, Credit Suisse, what's happening right here? Should we be worried? Yes, his statement is right. And when you think about Credit Suisse, their biggest investor, which is one of the Saudis largest banks who are locked in at around 10% of equity in Credit Suisse, they are not interested in injecting more capital. That always worries me when one of your best investors typically it's done like in the VC world, you go to your VC investor and say, hey, listen, I'm start up. I need a
AP News Radio
World shares up after First Republic aid spurs Wall St rally
"A group of banks of extended a lifeline to U.S. based first republic bank, offering reassurance to financial markets. Markets rallied on Wall Street and in Europe and Asia, after news at 11 big banks have offered a combined deposit of $30 billion to help troubled first republic bank. Markets gyrated this week after the collapse of Silicon Valley bank and investors were looking for other troubled banks amid concerns over the unintended toll that interest rate hikes are taking on financial institutions. Shares of Credit Suisse plunged after their biggest shareholder, the Saudi national bank, said it would not provide any more support, but rebounded after Switzerland's national bank offered $54 billion in liquidity, Stephen Ennis of SPI asset management says in a report, the market remains cautious, traders do not want to get overexcited, especially with investors still focusing on what can go wrong instead of what could go right. Treasury secretary Janet Yellen told a Senate committee Thursday that the U.S. banking system remains sound, yesterday the European Central Bank raised its key rate by half a percentage point that expectations on Wall Street are that this week's turmoil will push the U.S. Federal Reserve to cut its rate hike next week to a quarter of a percentage point. I am Jennifer King
The Charlie Kirk Show
The Economy Is on Very Fragile Footing
"There's several topics here, but I do want to talk about the Silicon Valley bank thing because I think it is an example of some of the deeper economic fissures that we're going to experience living above the means, but the federal government comes in and they ensure deposits up to any amount, basically eradicate in the FDIC minimum. That sets a precedent where again, I'm somewhat conflicted because they almost had to do that. To preserve the fractional banking preserve system. But if there's not going to be a cost for bad decisions or they're not going to follow the $250,000 guideline, then there is no limit. How much more can we take if the federal government is coming in and pumping an artificial money into the economy? We're in really fragile footing. Yeah, yeah. And they only before they went and did this, which was unprecedented. There's only a 120 or a $130 billion set aside for this kind of business. So anything like Credit Suisse or any of these other banks going would well exceed that number. So I think they did something that's unprecedented. And then if other banks even smaller banks want a business, are they obligated to come in and protect? That's the question I don't really understand. And how they could do this. And the thing is, yes, I guess you could say they had to do it. But my argument will be that if this bank was really strong, like everybody said it was actually a very strong bank. They just had a few errors. It should have been cleared up within the next few days. I think they just basically sent a message. They didn't want banks all across the country to have these bank runs. So I guess as an administration, you decide to do that. But to say that there's no cost is misleading, because basically we're using money that we could put into somewhere else to bail out an asset or a bank that is not doing well.
The Charlie Kirk Show
Noble Gold CEO Collin Plume Discusses the Banking Crisis
"Plume from mobile gold. Just tell us about your company, what you're doing. And I just want to encourage our audience. I never tell you what to do with your money, but I can tell you what I'm doing with mine. I'm buying stuff I can touch. Yeah, well, and especially this week, I think that we've seen over the years when people would wire money out of a bank. And sometimes a banks would try to discourage them. They would tell the client as they walked in. They would tell, you know, are you sure? Yeah. Do you really want to do this? But I've had a lot of funny calls from clients where they said, this is the first week that they bought gold from us, that even the bank that they want to discourage them. It's a sending us money. And they know who we are, that makes obviously no who we are. Of course. So it's been we've had a massive influx of people that just want to get out of the banks. Even people that aren't with SVB or stupid valley bank or whatever you want to call it. Even people that are with that bank. Or Credit Suisse, man. Yeah, I mean, credit Swiss is almost two times the size of or two and a half size the size of Silicon Valley. Yeah, it's 1.5 trillion in assets. So that would be a massive collapse. That would change things pretty dramatically in the system. But overall, the banking crisis has been something that I've talked about for a long time. Yeah, you have. And it comes down to banks today. They obviously need to make a return. And a lot of the banks today are struggling to find a decent return, especially ones about treasuries a year ago. But this collapse, I think, made no sense in that when they bought those treasures a year ago, it didn't make any sense that they didn't take the lick back last year, sell some of it. Why would they sell 60% of what they had today? It really was the perfect storm for that bank. And there's 6 or 7 other banks that are in a similar position. And we'll see what happens over the next few weeks. Yeah, and
The Breakdown
Apparently, U.S. Regulated Banks Are Riskier Than Stablecoins
"All right Friends, well, today we are going to discuss the delicious irony of why, despite all the teeth gnashing of politicians, it wasn't stablecoins that disrupted the regulated financial system, but the regulated financial system that disrupted a stablecoin. First though, I want to do a few follow-ups from things we've discussed over the last few days. Yesterday we talked about Credit Suisse. You'll remember that markets were freaking out about it and pricing in a huge chance of default. After their biggest investor said absolutely not to further investment. As we discussed, despite the fact that its problems were quite different than Silicon Valley banks, having another bank in peril so close to last week's dramatic events inherently connected the two. Well, today, Credit Suisse has posted a record surge of as much as 40% and has seen major drops in their default swaps. The big update is that they were able to open up a CHF 50 billion credit line with the Swiss national bank, which is about $54 billion U.S.. They also announced plans to purchase some senior debt to the tune of about CHF 3 billion. So seems like the European banking crisis is over, right? Well, enough so that the ECB hiked rates by 50 basis points today, and I guess we'll have to see how that plays out over the next few days. Meanwhile, back in the U.S., all eyes have been on first republic. Indeed, before the New York department of financial services decided to off signature bank over the weekend, most believe that first republic was the most likely next U.S. domino. Well, on Sunday, first republic reported that it had more than 70 billion in unused liquidity from agreements with the fed and JPMorgan Chase, but its stock still cratered this week. Given that, word is that they're exploring a sale. Unlike SVB, silver gator signature, no one industry makes up more than 9% of first republics depositor base, and their emphasis on private banking and wealth management seemingly make them a juicy target. JPM is one that many have mentioned in conjunction with the sale, but it seems like others, including Bank of America subsidiary Merrill Lynch, and Morgan Stanley might also be interested.
AP News Radio
Credit Suisse shares soar after central bank aid announced
"Swiss lender Credit Suisse shares have soared after Central Bank aid was announced. The bank leaders shares have gained 30% after it announced it will move to shore up its finances by borrowing up to $54 billion from the Swiss Central Bank, is a massive swing after its shares plunged on the 6th stock exchange a day earlier after its biggest shareholder, said it would not invest more money that had dragged down other European banks as fears about the banking system expanded overseas following the collapse of some U.S. banks, Credit Suisse, which was beset by problems long before the U.S. bank failures says it would exercise an option to borrow up to CHF 50 billion or $53.7 billion from
The Breakdown
"credit suisse" Discussed on The Breakdown
"Speaking of investigations, a couple little bits of news to catch up on that we hadn't got to yet, giving the banking sectors hemorrhaging all around us. The Wall Street Journal has reported that the Justice Department is looking into last year's collapse of Terra USD. According to anonymous sources, the FBI and southern district of New York prosecutors have questioned former employees a terraform labs, and have sought to interview others. In February, the SEC filed a lawsuit against terraform labs and their CEO Doe Quan, accusing the firm of misleading investors about the risks of Terra USD. The DoJ investigation is covering similar accusations of fraud according to these WSJ sources. Now sources speaking with Bloomberg said that the investigation doesn't stop at do qua and terraform labs. Those sources added that U.S. prosecutors are looking into group chats between prominent trading firms, including jump trading group, Jane street group, and Alameda research about a potential bailout of terror USD as the stablecoin was on the precipice of collapse. The Bloomberg source said the messages were being looked over to see if market manipulation occurred. Ultimately, the bailout did not occur in Terra USD disintegrated into worthlessness shortly after. No charges have been filed against any of the parties and there is no indication at this stage that charges will be pursued. Mike dudas from 6 man venture says they're coming for your group chats and on, staying on the theme of U.S. regulators, the US Treasury is close to publishing a risk assessment report, which will analyze the use of DeFi and illicit finance. Speaking at a banking event in Sydney, Australia on Monday, assistant secretary for terrorist financing and financial crimes Elizabeth Rosenberg said, elicit actors are constantly looking for effective ways to hide criminal activity and the laundering of their proceeds. This is a threat to DeFi services or other elements of the virtual asset ecosystem. She said her team is quote actively working on the report which will be publicly released soon. Rosenberg went on, stating that quote the explosion and pace of developments in the virtual asset space are frankly astounding. This can often mean the industry treats regulations and financial crimes compliance as an afterthought. While governments should be wary of stifling innovative spirit, we can not forsake the obligation to promote financial integrity and protect people in financial systems from fraudsters and criminals. Now, it seems like the main concern was the use of DeFi by North Korean hacker groups to conduct ransomware attacks and steal hundreds of millions of dollars worth of digital assets, which Rosenberg claimed had been used to fund illegal nuclear and ballistic missile programs. Rosenberg said I am intrigued by the potential legitimate use cases for decentralized finance, yet I know that illicit actors are constantly looking for effective ways to hide criminal activity and the laundering of their proceeds. This is a threat to DeFi. Rosenberg also suggested the DeFi could assist in providing financial services to underbanked populations. These comments were a good reminder that before FTX, we were still in the world where most of the regulatory discourse, even though it was skeptical of crypto, was largely focused on this sort of side of things.
The Breakdown
"credit suisse" Discussed on The Breakdown
"The big picture power shifts remaking our world. The breakdown is produced and distributed by coindesk. What's going on guys? It is Wednesday, march 15th, and today we are discussing whether Credit Suisse is the next banking domino. A quick note before we dive in, there are two ways to listen to the breakdown. You can hear us on the coin desk podcast network, which comes out every afternoon and is featured alongside other great coin desk shows, or you can listen on the breakdown, only feed which comes out a few hours later in the evening, wherever you're listening if you are enjoying the show, I would so appreciate it if you would leave a rating or a review. It makes a huge difference. All right Friends, today we are talking about the same thing that everyone in traditional markets is talking about, which is Credit Suisse. Bloomberg's headline Blair's Credit Suisse and fight to win back confidence as shares plunge. And that headline has recently been updated to the even scarier Credit Suisse ignites global market route as banking fears return. So what's going on is Credit Suisse the next domino is it a big nothing burger? Is it something totally different, but it doesn't matter that it's totally different because all people here is bank failure and they get scared, let's dive in. So Credit Suisse has been looking shaky for a while. It's in the midst of a larger restructuring process by which its investment banking division will be spun out and the bank will focus just on its wealth management division. This is actually its second big strategic pivot in the last two years and obviously in the world of banking, that sort of bobbing and weaving isn't necessarily something investors get too excited about. To say nothing of course of depositors. Now right now, the specter of Silicon Valley bank is hanging not only over Credit Suisse, but the whole banking sector. This is despite the fact that Credit Suisse's leadership says there's no comparison, and that the bank trying to get back to profitability after changing its strategy has nothing to do with the extreme liquidity issues of smaller U.S. banks. However, this morning markets were further roiled when the chairman of the Saudi national bank, which is Credit Suisse's biggest shareholder, said that they would not be investing any more money into the beleaguered bank. The chairman of the Saudi national bank said that the biggest reason is just regulatory and statutory reasons that prevent them from boosting their share beyond the just under 10% they own now. Now as prosaic that might be, it obviously still wasn't good news. CSS shares were down as much as 29% hitting a new all time low. They're one year default swaps are also in a distress zone currently sitting around 18 X, the one year CDS for UBS, and 9 X for Deutsche Bank. Now, all in all, there are two big and quite different interpretations of what's going on. Investor in China perma bear, Kyle bass writes the recent collapse of SVB, signature bank, and silvergate bank was a warmup of larger things to come outside of U.S. borders. Credit Suisse's 5 year insurance against default has gone parabolic this morning, given their capital structure they now have three weeks or less to be sold. Greg foss says if you thought SVB caused some unease in the credit markets, just wait until Credit Suisse collapse. The derivative exposure and counterparty risk concerns will be Lehman Brothers like. Regulators need to pay a merger partner since true equity value is negative.
The Breakdown
Is Credit Suisse the Next Banking Domino?
"Right Friends, today we are talking about the same thing that everyone in traditional markets is talking about, which is Credit Suisse. Bloomberg's headline Blair's Credit Suisse and fight to win back confidence as shares plunge. And that headline has recently been updated to the even scarier Credit Suisse ignites global market route as banking fears return. So what's going on is Credit Suisse the next domino is it a big nothing burger? Is it something totally different, but it doesn't matter that it's totally different because all people here is bank failure and they get scared, let's dive in. So Credit Suisse has been looking shaky for a while. It's in the midst of a larger restructuring process by which its investment banking division will be spun out and the bank will focus just on its wealth management division. This is actually its second big strategic pivot in the last two years and obviously in the world of banking, that sort of bobbing and weaving isn't necessarily something investors get too excited about. To say nothing of course of depositors. Now right now, the specter of Silicon Valley bank is hanging not only over Credit Suisse, but the whole banking sector. This is despite the fact that Credit Suisse's leadership says there's no comparison, and that the bank trying to get back to profitability after changing its strategy has nothing to do with the extreme liquidity issues of smaller U.S. banks. However, this morning markets were further roiled when the chairman of the Saudi national bank, which is Credit Suisse's biggest shareholder, said that they would not be investing any more money into the beleaguered bank. The chairman of the Saudi national bank said that the biggest reason is just regulatory and statutory reasons that prevent them from boosting their share beyond the just under 10% they own now. Now as prosaic that might be, it obviously still wasn't good news. CSS shares were down as much as 29% hitting a new all time low. They're one year default swaps are also in a distress zone currently sitting around 18 X, the one year CDS for UBS, and 9 X for Deutsche Bank. Now, all in all, there are two big and quite different interpretations of what's going on. Investor in China perma bear, Kyle bass writes the recent collapse of SVB, signature bank, and silvergate bank was a warmup of larger things to come outside of U.S. borders. Credit Suisse's 5 year insurance against default has gone parabolic this morning, given their capital structure they now have three weeks or less to be sold.
Marketplace with Kai Ryssdal
"credit suisse" Discussed on Marketplace with Kai Ryssdal
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Marketplace with Kai Ryssdal
"credit suisse" Discussed on Marketplace with Kai Ryssdal
"I got my brackets done just in time. The men's NCAA basketball tournament tips off tomorrow, the women go on Friday, but a man all the bright lights and buzzer beaters, lingers the messy world of name image likeness for college athletics. Bruce schoenfeld. He's an author and contributor to The New York Times Magazine, wrote not too long ago about how those NIL deals are changing the economics of college athletics. Bruce, welcome to the program. Thanks, Kai. Good to be here. Let's get the lay of the land here on name image likeness. What is the current state of play? Flux. It's a complicated situation because the current lack of restrictions were sort of thrust onto colleges with no warning and the going on two years since then have basically been a real-time reaction to all of a sudden having your athletes be able to do in any extreme something they weren't able to do at all before. With no guardrails and no guidance. So who's in charge? I mean, is there anybody keeping an eye on this? I mean, you and I are keeping an eye on it, but it's just people like us. Unfortunately, the only entities that really could regulate this are the NCAA, which in its infinite wisdom chose not to, and Congress, which is Congress. Enough said there. So look, this is fundamentally an economic problem, right? Because while college sports are a multi-billion dollar business, there are only so many bazillion dollars and now the pies are having to be split. Talk about that a little bit. You know, there are many unintended consequences to this. I think everybody felt that it was a good idea, the problem there is that unlimited amount of money that's coming in is coming in from sponsors and boosters who were already using it in ways that were helping to sustain all the rest of college sports. And now that money is all going to the quarterbacks and the running backs and the point guards and the power forwards to the detriment of all the other sports that needed to survive. What happens then to the rest of any given schools, maybe non revenue sports, but also, you know, second tier ish kind of sports. I mean, is there are they not getting any money now? Well, you know, it remains to be seen what happens. The funding mechanism for those sports is through the athletic department. The athletic department gets its revenue from a handful of ways. Television contracts, ticket sales, and boosters. That money now, instead of coin for the swimming pool, the best thing I can do and do on behalf of my university is to go get that prep quarterback. Now, putting aside for a moment that one of the few restrictions on this is you're not supposed to be using it for recruiting. Everyone's doing that. And that is money that has to come from somewhere and that was doing other work. It kind of sounds not sustainable, Bruce. It isn't sustainable, and that's kind of one of the good things in that everybody in the ecosystem agrees that something has to change. The problem is there's not a lot of agreement on how it should change. So we go back to the beginning, what's the current state? It's just in flux. It keeps changing. Week after week based on new developments. So look, for all the flux and the murkiness and the pain, you know, sort of that's coming from this. Do you suppose this is a necessary step to get to the point where number one everybody recognizes that college sports, especially big time college sports, are actually oh look a business and B, we figure out how to make it function as a business. You know, a lot of athletic directors felt that the old system wasn't working. And they were headed for an economic problem even apart from their immunization of athletes that there needed to be changes. And maybe the answer long term is that not every school will have every sport that each school may have a couple of big time sports and not much else or it may play out in completely different ways. The problem is no one has any idea. Frequent contributor to The New York Times magazine
Marketplace with Kai Ryssdal
"credit suisse" Discussed on Marketplace with Kai Ryssdal
"Thanks to the implosion of SVB and signature we all know a lot more about regional banks today than we did a week ago. These aren't the big Wall Street names like Bank of America or Citigroup and they're not the community banks with maybe just a couple of branches. They're basically the ones in between. And this week, the ratings agency moody's said it's reviewing half a dozen of them for possible downgrades that includes first Republican western alliance Bancorp. Those two and others have taken a market beating the past couple of days as well. Marketplace is Amy Scott explains what's going on. Unless you live in their region, it's likely you've never heard of some of these banks or hadn't before they were all over the news this week. With some regional bank shares face planting, how stable. The first republics of the world, the PAC west Bancorp of the world, some of the others. The republic, western alliance, metropolitan bank, among the biggest laggards, first Republican first republic and PAC west are based in California, western alliance in Arizona, Lakshmi Bala subramanyan is a Professor of finance at case western reserve university. She says regional is kind of a loose term. It's not incredibly well defined, right? When you talk about a region, is it a state or contiguous state? A certain district, Texas based comerica bank has branches in Arizona, California, Florida, and Michigan. First republic is scattered throughout 8 states, including Wyoming, New York, and Massachusetts. Especially as you go up in size, the geographic footprint of these banks can get pretty broad to the point where the large regionals, at that point, you're almost at a national scale. Morningstar analyst Eric Compton says there's one main reason regional bank stocks have been in turmoil this week. The government's never going to let like a JPMorgan fail. However, regional banks not viewed as systemically important, maybe the government does let them go under. And then there's an off chance that maybe you're deposits are at risk. In the case of Silicon Valley bank in California and signature bank in New York, the government did step in and ensure all deposits. But that doesn't always happen. There have been banks that have gone under, were depositors were not made whole. And so I think that's why regionals are getting penalized more right now. SVB and signature were unique banks with uniquely risky circumstances, but investors and bank customers are suddenly wary of any others with similar issues, like a high percentage of uninsured deposits, and large holdings of bonds that have lost value as interest rates have climbed. Mark Williams is a former bank examiner who teaches finance at Boston University. So the concern would be that as flight of deposits moved to the biggest banks, then the smaller banks are made vulnerable. Williams says regional banks play an important role in the economy, they may offer more flexibility and personalized service than larger banks and make loans to small and medium sized businesses that might otherwise be ignored. They represent important niches in the marketplace to restore faith in the system, the fed is also offering emergency loans to help banks cover withdrawals and considering tougher rules for midsize banks, Lakshmi Bala subramanyan says the situation has shown that when it comes to systemic risk, size isn't the only factor. We don't want the regulatory burden to be excessive and smaller institutions, but if it's complex or overexposed or if it's of a certain risk profile that makes it more susceptible to say bank rents, it becomes important for us to be cognizant of that. Yesterday, senator Elizabeth Warren and other Democrats introduced legislation to reverse Trump era deregulation of midsize banks, they say contributed to the recent failures. I'm
CoinDesk Podcast Network
"credit suisse" Discussed on CoinDesk Podcast Network
"The breakdown is produced and distributed by coindesk. What's going on guys? It is Wednesday, march 15th, and today we are discussing whether Credit Suisse is the next banking domino. A quick note before we dive in, there are two ways to listen to the breakdown. You can hear us on the coin desk podcast network, which comes out every afternoon and is featured alongside other great coin desk shows, or you can listen on the breakdown, only feed which comes out a few hours later in the evening, wherever you're listening if you are enjoying the show, I would so appreciate it if you would leave a rating or a review. It makes a huge difference. All right Friends, today we are talking about the same thing that everyone in traditional markets is talking about, which is Credit Suisse. Bloomberg's headline Blair's Credit Suisse and fight to win back confidence as shares plunge. And that headline has recently been updated to the even scarier Credit Suisse ignites global market route as banking fears return. So what's going on is Credit Suisse the next domino is it a big nothing burger? Is it something totally different, but it doesn't matter that it's totally different because all people here is bank failure and they get scared, let's dive in. So Credit Suisse has been looking shaky for a while. It's in the midst of a larger restructuring process by which its investment banking division will be spun out and the bank will focus just on its wealth management division. This is actually its second big strategic pivot in the last two years and obviously in the world of banking, that sort of bobbing and weaving isn't necessarily something investors get too excited about. To say nothing of course of depositors. Now right now, the specter of Silicon Valley bank is hanging not only over Credit Suisse, but the whole banking sector. This is despite the fact that Credit Suisse's leadership says there's no comparison, and that the bank trying to get back to profitability after changing its strategy has nothing to do with the extreme liquidity issues of smaller U.S. banks. However, this morning markets were further roiled when the chairman of the Saudi national bank, which is Credit Suisse's biggest shareholder, said that they would not be investing any more money into the beleaguered bank. The chairman of the Saudi national bank said that the biggest reason is just regulatory and statutory reasons that prevent them from boosting their share beyond the just under 10% they own now. Now as prosaic that might be, it obviously still wasn't good news. CSS shares were down as much as 29% hitting a new all time low. They're one year default swaps are also in a distress zone currently sitting around 18 X, the one year CDS for UBS, and 9 X for Deutsche Bank. Now, all in all, there are two big and quite different interpretations of what's going on. Investor in China perma bear, Kyle bass writes the recent collapse of SVB, signature bank, and silvergate bank was a warmup of larger things to come outside of U.S. borders. Credit Suisse's 5 year insurance against default has gone parabolic this morning, given their capital structure they now have three weeks or less to be sold. Greg foss says if you thought SVB caused some unease in the credit markets, just wait until Credit Suisse collapse. The derivative exposure and counterparty risk concerns will be Lehman Brothers like. Regulators need to pay a merger partner since true equity value is negative. Fiat Ponzi one O one. Now, more sober but still concern take comes from Andreas thano Larsen, who writes, Credit Suisse has been able to withstand heavy deposit flight through the past 12 months with decent liquidity ratios intact. But the bleeding has got to stop for Credit Suisse to survive. Hikes are not positive for banks now. Then again, on the other side of this discussion, there is Tony grier who writes for what it's worth, Credit Suisse has been blowing up my entire career. I'm amazed we're still talking about it. In any case, once again, they're communications are not helping things. Zero hedge tweets, Credit Suisse CEO, we are a strong bank and overshoot all regulatory requirements. Credit Suisse CEO, our liquidity base is strong. Hate to see what a weak liquidity base would look like. Still, my favorite take comes from Doug Bonaparte, who says Credit Suisse, downgraded to credit sus. So I think that what's going on at Credit Suisse is quite obviously very different than what's happening at places like Silicon Valley bank and other U.S. banks who are underwater because of unrealized losses and the shift in the global interest rate regime. However, I don't think that in this environment that particularly matters. I think that people are seeing bank trouble and are thinking about the implications of another bank failing, even if it fails for entirely unrelated reasons. There's certainly some evidence that this nervousness is extending across the banking sector, and that Credit Suisse is giving that a particularly European flavor. A number of European banks were dragged down today by the Credit Suisse news, including society general, B and B paribus and others which are down more than 10%. All told among
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"Hager. Credit Suisse still expects to return to profit in 2024, that's despite warning of a significant loss this year and reporting a 5th straight quarterly decline. Credit Suisse saw a record $120 billion in outflows in the latest quarter and it's making significant cuts to its bonus pool. The CEO of Credit Suisse, Ulrich kerner, spoke about all that and more with Bloomberg's francine LaCroix. Let's listen in. We have results? Your first gut feeling about them? Who results on acceptable obviously and that's why we created a new strategy transformation program which we, as you know, communicated at the October to create a new Credit Suisse, much more focused, simpler, built around client needs. In the midterm, very profitable, and we are executing at pace. And let me also say we are confirming all our targets we gave by the end of it. So when do you think results will be acceptable? When will they be at a level that you're comfortable with? Look, we said this is a three year transformation. We gave targets on return on equity, as you know. We confirmed them, so it will take some time, 2023, certainly a very transformative year, and then we get better and better. What's your outlook for asset flows? So we have seen what has happened in October. Let me say that the outflows we have seen basically are more than 85% stemming from October and November. And if you click only in October it's more than 60%. So what we did immediately after we could communicate end of October, we put in place in at least what the colleagues tell me, an unprecedented client outreach program. So we talked in the meantime to more than 10,000 wealth management clients, individual as we talk, and more than 50,000 clients in Switzerland. And I think that has created very good momentum. So if I look into January, the group overall is not positive on deposits. Wealth management globally as well, but Asia pact as well, where it's mentioned being positive on that new assets and Switzerland as well. So I think the situation has changed completely. When will critically be reliably profit again? Look, that is a far reaching far reaching question. We said very clearly we will make a loss in 2023 and from there on we will get better and better. Talk to me a little bit about compensation. I mean, this certainly created waves. There was talk about you delaying compensation for doing it in three trances. What is the reasoning behind that? No, we are not doing it in response. So we have, we have had big so to say compensation day like the day before yesterday. And they were very small parts of the firm particular seniors in CSF was delighted, but we are doing that over the next couple of days. But overall, it was done globally more as at the same time. So what's your strategy on compensation and bonuses? Quotation mark is pretty simple. That needs to be in line with the results, more or less. And I think that's the current thinking and the future thinking. And I think that is also something which is very important. You know, if you think about new Credit Suisse, that provides us with the opportunity to create an awesome new culture. And that is all what we are defining now and I think the new culture when it comes to compensation in principle going forward will be you make profit your papers. If you don't, you pay the very little on us. So that's the culture around bonus going forward. Are you reallocating bonuses? Actually, at the bank, like how you think about it? What do you mean by we are locating? In terms of the units. So it seems pretty, I guess, intuitive that if you make a profit or if you do good, you have bonuses. Are you taking some away from certain people to give it to others? How has that changed in the last 12 months? Looked at no in principle or not, but the only thing which we are doing obviously is as you have seen, we cut up the bonus for significantly, which you would expect, I guess, in a year like last year, but then we make sure that's maybe the overall the only overlay we are creating to make sure, you know, that we can really keep the franchise. And in this sense, it might be that, you know, a little bit Cosmo left and right, and so on. But in principle, it goes on the underlying results. Are you worried about people leaving the firm? Look, we have a tough bonus on the sentence. We are in
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"Rising costs, the strain is beginning to show with Tesco and asda both recently announcing job cuts, but there's better news from the boss of the UK's biggest dairy producer. The CEO of ala says that he expects the cost of milk and butter to drop over the course of this year. In London, I'm you and Potts Bloomberg daybreak Europe. More than one third has now been wiped off the value of the adani group, the $79 billion stock route comes despite the successful completion of an equity sale for the conglomerate's flagship firm, Bloomberg's markets reporter annabelle Julius says the news isn't as positive as it may appear. It's not really good news when you take a look at what was missing in the FPO and that was interest from the retail sale because that was noticeably weak here. Individual investors, they only took about 10% of the shares that were offered to them, even though adana had actually been hoping to expand its investor base. That was Annabel rulers in another blow for adani Bloomberg has learned the private banking unit of Credit Suisse has stopped at accepting adani bonds as collateral for margin loans. Credit Suisse was listed as a backer in adani's rebuttal of the Hindenburg research fraud allegations earlier this week, adani has denied all of the allegations leveled at it by Hindenburg research and other banks continue to lend against its debt. Federal Reserve officials look set to slow the pace of interest rate rises later today, markets are pricing in a 25 basis point height by the fed, bringing the base rate to a range of 4.5 to 4.75%. Mike bell executive director and global market strategy at JPMorgan asset management says traders need to be wary. I actually think the biggest risk to markets is that we don't get a recession in 2023. The wage growth stays high and the fed, having maybe paused for a bit in March, then in the second half of the year, they actually end up putting rates up by more than its forecast and aren't able to deliver the rate cuts that the market is expecting for 2024. Mike bell also telling Bloomberg he believes the terminal rate will likely be reached in the coming months, the decision due at 7 p.m. London time this evening. Now research shows the majority of traders now believe artificial intelligence will have the biggest impact on financial markets in the coming years, a survey by JPMorgan found more than half now believe AI and machine learning will have the most influence on trading over that period. That's up from a quarter just a year ago and comes after the launch of chat GPT turbocharged a broader interest in AI technology. There is not one conversation that it is not appropriate at the start of 2023 in which to insert chat GPT, it seems to me, Steven, it seems to be everywhere. Everything everywhere all at once. I mean, I'd love to see you last week and I scripted the entire thing on chat GPT so that I would have things to say. Excellent. And it's something that we were talking about before is on this program. Bloomberg's incredible ability to index almost anything. Absolutely. And there is now a new one that has caught your eye. Absolutely. So we can take any culture and reduce it down to a crude index. And I think we've previously done this with the great British breakfast pizzas. Pizzas in Italy, something to do with seafood in Spain that remains. Consisted in the newsroom as to whether this is really, well, anyway, the contested about its significance. Anyway, the one today is Australia, isn't it? So all of this really comes down to charting inflation and nice ways to talk about inflation really. And this is a barbecue index, which the thing that stuck out to me to pick up a theme that we've talked about before on this program is that the thing in a great Australian barbecue that might not be increasing at such a pace as everything else is the wine. Everything else has to be flying in terms of price. And yet the wine actually not so much. I also really enjoyed it. Why isn't included in the ingredients so elsewhere a cheese bread ice cream poultry software? I don't even talk about the cheese. That was very expensive. Yeah, seafood for if you're wanting to go full stereotype at 8.8% higher year on year according to the Bloomberg Australian barbecue. Excellent. I'm glad we've dealt with that one up next. Stealth taxes get higher earners. Universal Music looks to retune its streaming model and lotus accelerates towards a U.S. listing. Now the paper review on Bloomberg daybreak Europe. The news you need to know from today's papers. What Bloomberg's the younger is with us with more on
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"Imagine the heads of a lot of our listeners are spinning with the details. I got to say my head is spinning a little bit too. This is really complicated structure. So is the nature conservancy sort of the broker here between Belize and Credit Suisse, the money behind this, and that it's the good name of the nature conservancy that persuades people that this is a good investment to make. Debt for nature swaps have been around since the 1980s, but what I think is new in this round of recent swaps of which believes is the biggest, which the nature conservancy has spearheaded. Is the involvement of, for example, an investment bank Credit Suisse and that Credit Suisse is able to raise money to fund these deals from the market. So from institutional investors and that's a huge source of funds that have previously been largely untapped and someone's termed them kind of turbo charged that for nature swaps in the sense that there's now this unlimited effectively unlimited pool of institutional funds flowing, whereas in the past it was more kind of deals done with bilateral lenders, so governments that have limited funds So the bound that the Lee's head out was not doing well. They bought it back, Credit Suisse, then in partnership with the nature conservancy, cut their debt and reissued it for others to buy. Why is it that people are willing to buy this version of it when they weren't willing to buy the previous version? Critically important to this deal was a kind of insurance policy from the U.S. international development finance corporation, which effectively de risked the deal for investors and effectively put the U.S. government on the hook if Belize failed to pay. So people invest in it, they can feel good about it because they see that this is going toward cleaning up coral reefs and other things like that. And they don't have any risk that Belize, which you describe as a serial defaulter will the vault again. Right. So yeah, I spoke to one of the pension funds invested in the blue bonds and they were excited by them because they were low risk compared them to effectively U.S. treasuries in the sense they've got a U.S. government similar to a U.S. government guarantee and at the same time they are linked to marine conservation so they have a kind of ESG label on them. So they made this deal. How's it going? How did it work out? It can't believe is that by 12% of GDP reopened its access to financial markets and it redirected money that was once destined for foreign creditors into the local economy. And at the same time, Belize promised to final millions to protect its oceans and nature. I think regarding the long-term impact only time will tell, Belize is that remains unsustainable, so while it helps Belize is that bad and it hasn't put the country back on a fully sustainable path. And while the new terms of the deal offer a lower interest rate than the Europe one that was in the market and on a lower amount, that interest steps back up over the next few years, they've got a bit of breathing room, but they'll get that interest does that back up
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"On ready. And so really the last thing you need for Credit Suisse is another pair of uncertainties on top of everything else they're facing. So yes, is there pressure on him? Yes, given that he just got there. He has a little bit of say, right? He just got there. Yeah, he just got there. And so he has time on his hands, but how much is time a year, 12 months, two years? What about when it comes to staffing? And when it comes to talent acquisition talent wars, it's not what it was a year ago when it comes to investment banks when it comes to banks worldwide or here in the U.S. is more the story that I focused on. But when you think about it worldwide, do these issues really hurt retention at the bank? Yes. To your point, it's not as easy now as it was a year ago. And we have seen a lot of bankers leave Credit Suisse, for example, over the last couple of years. However, you know, I did now I'm pushing this beyond Credit Suisse. I have been having a lot of conversations on the buy side, big private equity funds who are looking at the banks like Credit Suisse, seeing who's left there and saying, okay, maybe some of these folks that worked in leverage finance or worked in equity capital markets can come work for us instead as we build up certain businesses when frankly assets are on the cheap and hiring is under pressure. So we can get even people for a better price. Real quickly, just got about 30 seconds to Swiss government. Yes. Could they help out here? I'm sure they are knocking on their door all the time because this is a gem of it going. But if anything, if they nudge anything to happen, you have to wonder if they're going to ask certain parts of a Credit Suisse to merge with any part of UBS or any other bank. All
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"From Bloomberg world headquarters, I'm Charlie palette we begin with the developing story Credit Suisse's outlook has been revised to negative from stable by standard and pores. After the bell we heard from Pinterest are based in San Francisco, the stock is surging right now up by roughly 20%. Elliott management says it is now Pinterest biggest investor and its supports Pinterest CEO again after our shares up now by 19% Pinterest also jumped after reporting resilient sales in the face of concerns the uncertain economy would curb digital advertising and user numbers that were better than analysts estimates. We've got Pinterest one more time up by roughly 19%. Equity snapped a three day losing three day rally as investors digested hawkish comments from fed officials. Today, the S&P was down by 11 points lower by about three tenths of 1%, Dow industrials down 46 lore by one tenth of 1% NASDAQ down 21, a decline of two tenths of 1%. Ten year old 2.58% spot gold today up four tenths of 1%, 1772 the ounce crude oil though, big story today barrel of West Texas enemy crew down 4.8%, 93 89 a barrel this on slowing global concerns. Recapping stock's lore today S&P down 11 a drop there just about three tenths of 1%. I'm Charlie palette. That is a Bloomberg business
Bloomberg Radio New York
"credit suisse" Discussed on Bloomberg Radio New York
"And global head of economic research at Credit Suisse. Where are you positive on equities? Where do you see upside? I think at the moment you have to look at it in stages, right? The equity market continues to be very sentiment driven. And so for now, we see immediate upside in China equities, for example, because of just the backdrop that is different, easing monetary policy instead of tightening monetary policy, very big fiscal programs. That gives already an immediate tailwind to the market in our view. But as the global market, I think that a stabilization of break-even inflation rates of interest rates is also going to lead to a floor in that. But it's just going to be more bumpy. And finally, in terms of just where to hide at the moment, defensive dividend yielding stocks are certainly the ones that are most resilient. So where do you think are you still very worried about still looking overpriced to you? I think anything that is linked, obviously, to the business cycle, right? We are in the process of an accelerating monetary tightening program here. And that is there to cool the global economy to cool demand. So anything that is cyclical will have to be closely watched for the next few months. Here, more conversations like this one on Bloomberg television, streaming live or Bloomberg dot com and on the Bloomberg mobile app, or check your local cable listings. Markets, headlines, and breaking news 24 hours a day. The Bloomberg business and good Bloomberg quick take. This is a Bloomberg business flash. From Bloomberg's European headquarters
WSJ What's News
Senate Convenes for Rare Weekend Session Over Infrastructure Deal
"We begin in washington where a bipartisan group of senators have struck an agreement on a roughly one trillion dollar infrastructure package. After months of talks. The senate voted sixty seven to thirty two to begin consideration of the bill above the sixty required. It's a reversal of a failed effort a week earlier when many specifics of the deal were still under negotiation. Republican negotiators said. They now had enough confidence in the details of the agreement to allow it to move forward
WSJ What's News
West Virginia Gov. Jim Justice on the Hook for $700m in Loans
"Virginia governor. Jim justice is on the hook for seven hundred million dollars worth of loans. His businesses took from the now defunct finance firm green silk capital. According to people familiar with the arrangements justice personally guaranteed the loans on behalf of bluestone resources his sprawling network of coal companies. The bluestone companies were one of the largest borrowers from greenville which package the loans and sold them to swiss banking giant credit. Suisse credit suisse is now trying to recoup its money. Neither a spokesman for mr justice nor lawyers for bluestone responded to requests for comment in march bluestone brought a lawsuit in a new york. Federal court alleging greenfield committed fraud in its lending
Stansberry Investor Hour
The Irresistible Charm of The "Family Factor"
"The first thing. I want to talk about is. It's actually a a piece. That was put out by credit. Suisse maybe four years ago. Yeah four years ago. Twenty seventeen and it's called the irresistible. Charm of the family factor. The family factor is just the fact that as they point out in the report family owned companies tend to outperform. The non family owned companies in their peer group and this it holds true. It's like all regions all sectors all different sizes big cap small mid cap cap. Everything in between and they say this was written in two thousand seventeen. They said over the last decade. The annual return generated by family owned companies was on average five percent higher than average annual return. That's a lot man. that's a lot. The difference between like twelve percent a year and seventeen percent year. Just say is a lot and so they're they have what credit suisse caused the family. One thousand apparently they have an index or a list of these of thousand of these companies and they started out the report. They say whether you're buying coffee at the small cafe around the corner driving a bmw or sitting in an armchair eating some fruit from the local grocery store. You're enjoying the products and services brought to you by family owned company so bmw i- kia and whoever else they're talking about