Banking stocks and bonds fell sharply on Monday as the hit to investors from UBS Group’s state-backed takeover of Credit Suisse fanned worries about the health of the global banking sector.
The Federal Deposit Insurance Corporation on Monday decided to break up Silicon Valley Bank (SVB) and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week.
The rudest shock in the rushed deal to save embattled Swiss lender Credit Suisse Group AG was reserved for the holders of the bank’s riskiest tranche of bonds.
Turbulence in the United States and the European banking sectors has prompted Indian policymakers to assure investors that the domestic financial institutions are resilient.
Most Wall Street banks expect the U.S. Federal Reserve to hike the benchmark interest rate by 25 basis points at the end of its two-day meeting on Wednesday, while money markets are leaning toward a pause as worries about a global banking crisis mount.
A former top executive at proxy solicitor Kingsdale Advisors on Monday said he launched a new firm amid growing demand for advice on engaging with shareholders as corporate agitators push for more changes at companies.
Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country’s gross domestic product, as part of their merger to buffer Switzerland against global financial turmoil, documents outlining the deal show.
Global banks borrowed only token amounts on Monday via an enhanced, seven-day dollar swap unveiled by the U.S. Federal Reserve late on Sunday to ease funding stress in global markets.
Shares of First Republic Bank slumped 20.3% in premarket trading on Monday, after a report the regional bank could raise more money fanned worries about its liquidity despite a $30 billion rescue last week.
