Credit Suisse Receives, $54 Billion Lifeline Loan.
On March 16, Credit Suisse announced
that it will take out a $54 billion
loan from Switzerland's central bank.
NBC reports that the move comes amid fears of a , global banking crisis.
Following the collapse of two major banks in
the United States, investors have signaled widespread
concerns regarding the stability of the financial sector.
Following the collapse of two major banks in
the United States, investors have signaled widespread
concerns regarding the stability of the financial sector.
Credit Suisse, the second-largest commercial lender in Switzerland, saw its stock recover by about 20% following its loan announcement.
Credit Suisse, the second-largest commercial lender in Switzerland, saw its stock recover by about 20% following its loan announcement.
The move reversed course on
a steep decline in the wake of the collapses
of Silicon Valley Bank and Signature Bank.
The move reversed course on
a steep decline in the wake of the collapses
of Silicon Valley Bank and Signature Bank.
NBC reports that a number of midsized and regional
banks remain under pressure, including
First Republic, PacWest and Western Alliance. .
Earlier this week, First Republic's stock
was downgraded to junk status by two
major credit rating agencies. .
Following the downgrade, stock
in First Republic plunged 35%.
Meanwhile, stock in regional banks
PacWest and Western Alliance
was down 17% and 11%, respectively.
The banking instability has sent ripples through
Wall Street, with the Dow Jones Industrial Average
down nearly 200 points early on March 16. .
The banking instability has sent ripples through
Wall Street, with the Dow Jones Industrial Average
down nearly 200 points early on March 16.