FRANKFURT, Germany (AP) — In a bid to ease turmoil in the world financial system, Swiss authorities engineered a plan for the UBS bank to acquire its troubled…
And this time, policymakers have been quicker to respond. The U.S. Federal Reserve offered credit to banks that suffered uninsured losses on bond holdings due to rising interest rates.
Questions have been raised about the technicalities of the Credit Suisse rescue and the decision to insure all depositors at Silicon Valley. But officials are showing that they learned one lesson from Lehman, “namely to act decisively and swiftly, and if needed to run roughshod over any discussion of moral hazard and legal obstacles, both of which can be discussed once the dust settles,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services International.
Among the lingering worries: Did other U.S. banks ignore the risk that interest rates might swiftly rise, as Silicon Valley did? Could there be trouble in other parts of the financial sector that don’t take insured deposits, such as investment banks, hedge funds and mortgage brokers? “That means the government is even more challenged to support any problems in the financial system,” said Tobias Straumann, an economic history professor at the University of Zurich.Analysts say pressure from markets and regulators may now make banks less likely to risk new lending, which could restrict credit for new purchases or investment in new businesses.Article content
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
UBS makes offer for Credit Suisse as contagion fears growUBS is in emergency talks to buy Credit Suisse as authorities bid to stave off turmoil when markets reopen on Monday.
Lire la suite »
UBS offers to buy crisis-stricken Credit Suisse for up to US$1-billion, reports sayA deal could be announced Sunday evening, as regulators seek an agreement before markets open in a bid to avert another selloff
Lire la suite »
UBS offers to buy Credit Suisse for up to $1-billion, media report saysSwiss government planning to change the country’s laws to bypass a shareholder vote on the transaction, according to report
Lire la suite »
Troubled Credit Suisse said to push back against UBS’s $1 billion offerUBS is offering to buy Credit Suisse for as much as US$1 billion, which the troubled Swiss firm says is too low, say sources. Read on
Lire la suite »
Troubled Credit Suisse said to push back against UBS’s $1 billion offerUBS is offering to buy Credit Suisse for as much as US$1 billion, which the troubled Swiss firm says is too low, say sources. Read on
Lire la suite »
Troubled Credit Suisse said to push back against UBS’s $1 billion offerUBS is offering to buy Credit Suisse for as much as US$1 billion, which the troubled Swiss firm says is too low, say sources. Read on
Lire la suite »