Credit Suisse Rescued. Whose Next?

March 16, 2023 Glen Turpening

The markets are calmer after the Swiss Central Bank stepped in to stop the Credit Suisse meltdown. Everyone wants to know-who is next? (Washington Post)

Credit Suisse shares jumped more than 30 percent when markets opened early Thursday, as investors appeared reassured by the offer of a liquidity lifeline for the lender from Switzerland’s central bank. The bank’s stock was still up about 22 percent around 11 a.m. central European time, though it remained below its precrisis value. The rally came after Credit Suisse said early Thursday that it would borrow up to $53.7 billion from Switzerland’s central bank to support its business, amid continued fears of market contagion from the collapse of Silicon Valley Bank. The troubled Swiss bank is much larger and more enmeshed in the global financial system than SVB and Signature Bank of New York.

By Rachel Pannett, Bryan Pietsch, Kelly Kasulis Cho, Annabelle Timsit and Ellen Francis, writing for 'The Washington Post"

The 2023 Banking Crisis appears to have come out of nowhere and almost nobody was expecting this debacle as the World economy was righting the ship post pandemic. The run on the banks started with internet hype that encouraged depositors to withdraw their funds or risk exposure to serious loss. That warning prompted a run on SVB that reverberated across the Globe and the everyone is now waiting for the dust to settle before taking a sigh of relief. Regulators, however, are expecting additional banks to fail with the current level of strain on the international Banking sector.