CNBC Daily Open: Credit Suisse is too big to fail. So UBS agreed to buy it
Publishing timestamp: 2023-03-20 01:52:55
Summary
UBS has agreed to buy Credit Suisse for $3.2 billion, with the Swiss National Bank loaning UBS up to $108 billion to support the takeover and the government guaranteeing losses up to $9 billion. The news caused U.S. and Asia-Pacific markets to fall, with banks continuing to plummet. Short sellers have taken advantage of the banking crisis, making nearly $2 billion in profits from bets against European banks. The crisis highlights how financial institutions and markets are driven by psychology, and investors are not convinced that banks and the broader economy can be made whole with current measures. The Federal Reserve may need to pause rate hikes to address the situation.
Sentiment: NEGATIVE
Tickers: PYPL, WAL, MA, CSG.N-CH, FRC, DLTR, WMT, DG, TGT, PACW, UBSG-CH, V,
Keywords: first republic bank, cryptocurrency, pacwest bancorp, dollar general corp, hong kong, switzerland, paypal holdings inc, dollar tree inc, markets, visa inc, target corp, credit suisse group ag, economic events, western alliance bancorp, banks, walmart inc, business news, ubs group ag, mastercard inc, united states, central banking, world markets,