Fears of another 2008-style banking crisis have resurfaced this week after Credit Suisse got a £45bn emergency loan from Switzerland's central bank while US authorities have stepped in to broker a £24.7bn rescue package for First Republic.
Stock markets have been jittery amid worries that isolated failures could widen to affect the global banking system, reviving bad memories of the financial crisis that plunged many Western economies into recession in 2008-09.
The news comes after the collapse last week of Silicon Valley Bank, the second-biggest bank failure in US history. Shares in San Francisco-based First Republic plummeted yesterday as customers began withdrawing their money fearing it could be the next to fail, but stocks recovered as reports of the rescue package surfaced.
A joint statement from US federal financial authorities said 11 banks have agreed to pump billions into the lender to stabilise it. The Bank of England is said to have been in talks with its global counterparts over the crisis, and was reportedly in touch with both Credit Suisse and the Swiss National Bank regarding the emergency loan.
But markets were steadying yesterday night amid hopes that the lifelines will limit any "contagion".
What's happening at Credit Suisse?
The lender has been struggling for many months, but this week sought help from the Swiss government after revealing it had found "material weakness" in its financial situation.
هذه القصة مأخوذة من طبعة March 17, 2023 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة March 17, 2023 من The Independent.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
NFL faces compelling decision as London Games return with Jets vs Vikings
The London Games are back with perhaps the finest NFL quarterback of the last decade and the highest-paid wide receiver in the league set to feature.
Jota seals Liverpool win but talisman Alisson limps off
Alisson Becker remains the king of Selhurst Park, but if he and Virgil van Dijk showed what Liverpool’s title bid will be built on this season, a win at Crystal Palace was perhaps also another indication of why the Reds spent part of this summer looking at the future.
Kovacic's new eye for goal hides Man City's fragility
No prizes for guessing who Manchester City’s top scorer is. Yet the identity of the man second in their standings comes as more of a surprise.
Dominant Saka shows he can lead Arsenal to the title
A classic case of a goal being the worst thing a lesser team could do. Southampton’s joy in Cameron Archer giving them a shock lead only served to awaken Arsenal, who went from a very flat display to one where they came at the visiting side from all angles.
Taliban profits as flights return to Afghan airspace after Iran missile attack
The number of international flights passing through Talibancontrolled Afghan airspace reached a record high this week in the aftermath of Iran's missile attack against Israel.
Villagers torch police camp after claim girl, 9, was raped then murdered in India
A local police camp in India was set on fire by a mob yesterday, just hours after the alleged rape and murder of a nine-year-old girl came to light.
Israel expands airstrikes to bombard northern Lebanon
More than one million people flee homes as fate of man thought to be replacement for Hezbollah leader unclear
Palace 'checking in daily' on teenage cancer patient who shared a hug with princess
A teenage cancer patient given weeks to live is being checked on daily by Kensington Palace after she met the Prince and Princess of Wales last week, her mother has revealed.
Parkrun celebrates 20 years
Event has grown from 13 runners to cover 2,500 locations
Hurricane Kirk aftermath to batter England and Wales
Britain is bracing for the aftermath of a hurricane currently intensifying in the Atlantic Ocean after the Met Office warned its influence will create a period of unsettled weather.
