credit suisse?— credit suisse? the bank has been poorly _ credit suisse? ly run _ credit suisse? the bank has been poorly run for - credit suisse? the bank has been poorly run for a - credit suisse? the bank has been poorly run for a very . credit suisse? the bank has i been poorly run for a very long time and when you have poorly run banks and a credit situation like we're having now globally, those other banks that tend to run into problems. there is a big that with credit suisse they potentially defaulted, that could have ramifications for other banks because we are all interconnected, they are learning to each other, doing cross trades with each other, so there are other banks that will have exposure to credit suisse, but the loan evidently from the swiss national bank, they will use those funds to buy back some of their debt is what i've read. perhaps they will try shore up the debt that was trading at very big discounts because people, there is a probability now in the market, 45— 50% chance of default by credit suisse so they will step into try to so

i think the fact that the credit suisse bank has i the credit suisse bank has shown that they are thereedit suisse is a significant step and it comes to on the market to some extent. howeverthe to on the market to some extent. however the trust is a big issue in banking in other words, there are issues of interconnectedness, their issues of what other bank in europe will be exposed to credit suisse and that is when the european banks in general, including euros on banks come into question and asian banks. they think the market is very nervous of risk of contagion and that is the issue that we really need to wait for another 24 really need to wait for another 2a hours to see what emerges. what you think happens next in terms of more regulations of the banking sector? i know that's been one of the factors as been talked about is the reason for why we have seen the collapses and the banking sector recently. in collapses and the banking sector recently.— sector recently. in other words. _ sector recently. in other words. i _ sector recently. in other words, ithink— sector recently. in other

lines crossing now from the largest shareholder on friday of credit suisse, the swiss saudi national bankg the changes in the credit suisse valuation will not impact their plans. the saudi national bank saying they remain comfortably above the threshold. the saudi national bank has taken a significant hit in terms of its holdings in credit suisse because shareholders are getting less than half the value from the friday close as part of this deal for ubs to take over credit suisse and the context historically is the value of credit suisse has fallen 99% since its peak in 2007. we will keep across these lines for you and the impacts for large shareholders at credit suisse on the back of this historic deal. let's check these markets as investors adjust and position around what the regulators in switzerland were hoping would be an event that would at least contain the risks around credit suisse. of course it has remained a question now, opened up a door around questions for bondholders, particularly the riskier parts, the at1's, written down to zero. banks falling, hsbc down, standard charter

>> every bank is geared toward rate hikes and that is also true for credit suisse. ir motto is based on advisory. in switzerland, they are. it is a deposit taking bank. in theory, there is no reason whatsoever that credit suisse is not making money in a rising rate environment. francine: but it was rising interest rates that hurt svb. >> because they messed up the funding part. francine: which there are no concerns at credit suisse at the moment? >> i think the treasury is better than svb. and as i said, much more regulated and diversified, and then yeah, you know, i think they can access markets quicker. and the deposit base, which is the funding basically, that's how a bank finances itself, is much more diversified. francine: the other question that we have and i know you and i have been hitting the phones for the last couple of days, is actually the capital structure and capital requirements in europe are different to the u.s. can you explain that a little bit? i know there is a sense that europe, a love the times, is a mess. are capital requirements stricter than

credit — bank. yes and there is certain i've anything credit suisse _ bank. k. yes and there is certain i've anything credit suisse has had - bank. yes and there is certain i've anything credit suisse has had its| anything credit suisse has had its issues of the past four years and this is not at the moment spent with the banks but that fear that it does, you know, is all about confidence. if confidence goes, money tends to follow so i think, as i say, that is why the government of the bank of england andrew bailey and andrew hunt at monitoring the situation carefully, everyone very clean that there is something in place within hours really to be sure that there is something in place within hours really to reassure the markets the next week.— within hours really to reassure the markets the next week. you'll come back if there — markets the next week. you'll come back if there is _ markets the next week. you'll come back if there is any _ markets the next week. you'll come back if there is any further - markets the next week. you'll come back if there is any fu

credit suisse. we are waiting for signals to open up. the early range would suggest a bounce of 40% in the bank. that is marching higher the closer to the session this morning. credit suisse secured a $50 billion swiss franc lifeline from the swiss central bank after slumming to a record low the saudi national bank said it would not provide further a assi assistance finma said the lender met capital and liquidity requirements credit suisse is the first global bank given an emergency lifeline since the 2008 financial crisis a couple more lines this morning. a note talking about this new loan facility from the central bank saying it improves the liquidity coverage this is liquid flows over 197% from 150%. the caveat is assuming the outflows are the same as the final quarter of last year a big question mark and that is what investors are looking at and the events over last number of days for the bank and if it is still stable at this point. we see credit suisse to buy debt on the market and concentration of risk with the re-pricing of the debt side and how much credit situuisse was having to . there

the markets are reacting to the deal and no default for a bank like credit suisse this is a contraction of credit. you get a flight to safety reaction risk is spread wider that way. it is not as wide as i expected given the peripheral banks written these securities i think it is more of the discounting economic scenario that will slowdown in europe >> ben, thank you. i appreciate it. nice to see you. ben emons. >>> something that is as sure as day following night is regulators and bankers and politicians are telling us how great things are and bafin, the regulator in germany the financial system is stable and robust they are adding this morning they are watching developments and will supervise that is it for "squawk box." up next to carry on the coverage is "worldwide exchange." it's hard to run a business on your own. make it easier on yourself. with shopify, you have everything you need to sell online and in person. you can have your inventory, payments, and customers in sync across all the places you sell. it doesn't have to be lonely at the top. join the millions to finding success

and signature bank credit suisse is a global international bank that's been in all sorts of trouble over the past few years. it's have various scandal, if it's undergoing a major restructuring, that's costing lots of money's making losses year after year at the moment. but what has been happening with credit suisse is a direct result of the confidence hit that the markets have taken as a result of what happened in the you asked these questions over the liquidity of banks have been raised precisely because of what happened to silicon valley bank and it is these questions that have ended up causing investors to panic about the situation at credit suisse. good to see european markets rebounding a bit, but the story is still moving along. could happen rob watts from the w business. thank you so much. thank you. ukraine's president, the leukemia zalinski says he believes russia's war is approaching a decisive moment. it is nightly video address. he said moscow was on the verge of failure in ukraine, thanks to western weap

banking, wobbles, one in the u. s. and one in europe in the same week. and they're not somehow linked . but the case, a credit suisse is very different to that all silicon valley bank and signature bank in the united states. credit suisse is for a while been seen as the sort of us both sick man of the european banking sector has been beset by scandals in recent years. it's undergoing a major restructuring that's costing it an awful lot of money. it's made losses in the past couple of years, expecting to make lost this year and next year. but the climate surrounding the banking sector is what caused this to happen right now. and that climate has been created by what's happened in the united states. the sensitivity of markets to questions of liquidity of banks has been created by what happened that said, confetti bank. so when the major shareholder of credit suisse says, we're not sure we could be able to provide any more money to they spank. that's really rattle markets. this week because of what's been happening in the states, this is a moving store. you talked about market sensitivities. how are the markets looking

francine: how do you explain the credit suisse crisis and the fact it has impacted all european bankingward: i do not want to comment on the specifics of credit suisse. there is honor among bankers as well as thieves. credit suisse has had idiosyncratic pursuits and i do not think people have a sentiment rita crops from that particular bank to the rest of the banking sector. overall, the european banking sector remains strongly capitalized and it remains very liquid, and we have not seen the kind of deposit flights which is causing problems in the u.s.. we see some shift from non-interest-bearing deposits to interest-bearing deposits, but typically within the banking system so that the net interest margin is moved a bit, but it does not cause a liquidity issue. francine: does it mean that regulation can change even in the u.k. and that if europe is actually in a better protected area in terms of capital, which you have explained sensibly, how do these crises change the european banking landscape and the u.k. one in the coming years? howard: it would be a false analogy to say because of

bank and theirfailures? how'd we get this? we go into son how important credit suisse is. stem. credit suisse is one of them and leave is another one, credit suisse been around 170 as there are concerns about issues on this. this all started last weekend talking about silicon valley bank and then we had first republic bank and two slightly different issues. i think bad timing as part of it. there have been issues with credit suisse for years and years but of course with the banking world it is all about confidence and all about feeling and when the fierce sets in when he starts to follow and evaporates investors will start to take their money out and that causes issues. i will caveat that when you talk to analyst brady fell like they are not in the throes of another 2008 banking crisis. back then, every banking crisis. back then, every bank was imposed to —— exposed to bad mortgage debt and this is very specific issues tied to these banks but the basic movement here in the emergency situation trying to get this deal done by this evening just shows how important it is. thihk

global banking shares continue to take a beating as it worries over the health of credit suisse. combated concerns by the sudden collapse of silicon valley bank. let's get more with russell ward in tokyo. what has the market reaction been to credit suisse's move so far and the support coming through from the snb? russell: the market reaction initially was positive with the european stock futures rising as you mentioned earlier, but in asia, bank stocks again fell and this reflects a hard sentiment in the banking sector globally, how it has been crushed by these crises. first the three failures of the banks in the u.s. and now the issues surrounding credit suisse. given it is a crisis of confidence, we are looking at many things going forward in terms of whether this latest effect will turn things around. one of those is the issue with the client outflows that oliver mentioned earlier. it is crucial for credit suisse given that it has hinged its future on the wealth management franchise it manages to retain these wealthy clients. with this groundswell of negative sentiment out ther

banking, wobbles, one in the u. s. and one in europe in the same week. and they're not somehow linked . but the case at credit suisse is very different to that. all silicon valley bank and signature bank in the united states credit suisse is for a while been seen as the sort of us suppose. a sick man of the european banking sector has been beset by scoundrels in recent years. it's undergoing a major restructuring that's costing it an awful lot of money. it's made losses in the past couple of years expecting to make last this year and next year. but the climate surrounding the banking sector is what caused this to happen right now. and that climate has been created by what's happened in the united states. the sensitivity of markets to questions of liquidity of banks has been created by what happened at silicon valley bank. so when the made a shareholder of credit suisse says, we're not sure we could be able to provide any more money to this bank. that's really rattle markets this week because of what's been happening in the states. this is a moving story. you talked about market sensitivities, how are the markets loo

crisis to the next. >> it is not a new thing and was part of what happened with the other bank, but credit suisse has been in trouble for a long time. it is the same theme driving these things, and mismanagement of a balance sheet, whether silicon valley bank or credit suisse, and fisher is at the swiss national bank and not -- and for sure, the swiss national bank cannot afford it to go down for them. right now people are nervous and we see people thinking that there are some things that clearly have been mismanaged because it is like 101 and running a bank, and iran want too. we are never going out the yield curve with short-term deposits. it is crazy, right. and trying to do it bullet train is coming and people are trying to get away. haslinda: are you trying to limit the exposure of a counterparty risk? >> we have no exposure to any one of these, so that is good, but i think really come the big question is this another lehman brothers moment or not? again, i think warren buffett cited very well at some point, when the tide goes out, you can see who wears swim trunks. clearly some people did n

banks of attracted, that's all. now put to question, credit suisse credit suisse is an incalculable damage to switzerland's reputation as a financial center. and i think was 1st national bank and this was government are fully aware of that and want to make sure that this doesn't go any further. now this is all happening, of course, in the context of to bang collapses that we've seen happening in the us. this past week and how far is this related to what happened to the as me be, for example? well, i didn't have any direct connection to the credit suisse and as v b, i didn't credit suisse had a big exposure to silicon valley bank at all. i don't think the swiss bank had large deposits with as we be. so it's not a direct connection. but i think was happening overall is that we're seeing a, an environment where we had a very, very low interest rates for very extended period of time. and that's true in the u . s. and esther in europe as well in switzerland bit less the the s and b has been a bit more careful. thompson's management of this was currency, but over was in very, very low interest rates for a long time. and no

we should point out that credit suisse is a bank that has been terminal for years. credit suisse is a has been terminalfor years. as one analyst put it it has been a slow moving car crash. two new things have happened to spook investors. the bank said there was material weakness in its financial reporting and its top supporter ruled out lending it any more money. all this adds to concerns about the global banking system. in an attempt to stabilise the troubled lender, the swiss central bank and swiss banking regulator said that credit suisse met its capital and liquidity requirements and, crucially, that the swiss central bank was ready to lend it money if necessary. us authorities say they are also monitoring the situation. meanwhile the european central bank has quizzed banks on its wash about their exposure to these swiss lender. the ecb is these swiss lender. the ecb is the first central bank to face the first central bank to face the interest rate dilemma. what do i mean? will it hike by 50 basis points at as planned or has the renewed bank turmoil changed its calculations? earli

banking stocks are at the forefront. again, in this first line of defense, you are selling the weakest, cheapest price as much. no offensive in credit suisse, but among banks, it is the weakest stop at this moment for everything i said before, earnings backup from potential investors. regulars and politicians can do very little to change that. the market forces, the economy will play out at this point. when it gets bigger, we will see if they have to give us a lifeline. lisa a.: how thick is the line between profitability and liquidity issues? jan-patrick: it is not so thick that we have to immediately talk about liquidity problems for credit suisse. two european banks have lots of access to liquidity.

ah, banking fear spread through europe. worries about credit suisse. trigger a sell off just days after a bank dealer in the us. first questions about solvency. we'll ask an expert, is there a substance behind the panic? and south korea doubles down on nuclear power as it's drives for more energy autonomy. sol wants to increase lucrative energy exports. welcome to dw business. i'm an easy no worries about the stability of the banking system have spread from the us to europe. shares and credit suisse fell to a record low after its biggest shareholder. saudi national bank rolled out a new cash infusion. the lender has appealed to the swiss national bank for a public show of support. concerns have been growing about the banks liquidity on both sides of the atlantic, falling the collapse of silicon valley bank and the u. s. a week ago. now for more on, on this, i'm joined by octavia moran. see he seals, consultant, c, o, p mas, mr. moran. the credit suisse has asked switzerland's national bank for statement of support, confirming it is financially healthy. do you expect that we'll have to p

losses pronounced across the banking sector. credit suisseclear winner but lots of losers. ubs will be running a bank with about five trillion dollars of invested assets and that's insulated with government guarantees of over $9 billion on certain losses. shareholders like its biggest are the losers. it's already lost over $1 billion in 15 weeks. next are the holders of credit suisse's so-called additional tier one bonds. usually if you hold a bond you get your money back. these are designed to convert into stock at times like these. it's now the first in the world to see a bank deal needing to be rescued on its watch. there is of course credit suisse , the investment banking business was meant to be spun off under michael klein. the former citigroup in banking investment head was selling as part of the deal, all of that is now in question. coming to the end of the european market open and let's cross back out to zurich where francine is standing by. we will check in on the markets. it's been a remarkable day for these equity markets and bond

are underway. rescue plans have been offered to 1st republican credit suisse banks to reassure markets. 11 banks of banded together to deposit $30000000000.00. at the 1st republic to shore up its finances. while the us treasury secretary has appeared before a senate committee, assuring it become pres, banking system is some we worked with the federal reserve in f d. i see to protect all depositories of the to feel banks. on monday morning, customers were able to access all of the money in their deposit accounts, so they could make payroll and pay the bills. shareholders and debt holders are not being protected by the government. importantly, no taxpayer money is being used or put it risk with this action. deposit protection is provided by the deposit insurance fund, which is funded by fees on banks. will rob ronald has more from outside a branch of 1st republican los angeles. on the one hand, the branch behind me is still open for business, so that's a good thing. on the other hand, 1st republic shares the, an after hours trading fell about 13 percent. not exactly a sign of extreme con

banks. i'm sure it will probably puzzle the markets when they open. tom: when it comes to credit suisses&p response, the response from the swiss bank, you are starting to see echoes, the silhouette of mario in the response. david: dori of credit suisse is completely different, we have a bank that is very well-capitalized. and, up to the best in terms of liquidity. it is very strange to see credit suisse, on the verge of a potential resolution, there is no case for resolution technically speaking. again, when it comes to the bank, it is often psychology, as we have seen the market action. the only way to reassure the market was for the for noir and swiss national bank to step in. first reassure their is no case for resolution at credit suisse. even the fundamentals. but, they will stand by and stand there if need be. tom: is not enough in terms of the outflows? in asia, they have evidence of people pulling their money because they want security and safety. that continues with the bad news and negative headlines. and then, raising the deposit rates to attract and hold those clients in hit

credit suisse in s v b, i didn't credit. was that a big exposure to silicon valley bank at all? i don't think this was bank had large deposits with b, so it's not a direct connection. but i think what's happening overall is that we're seeing a, an environment we've had a very, very low interest rates, a very extended period of time. and that's true in the u. s. and it's true in europe as well in switzerland. bit less the, the s and b is bit a bit more careful in terms of management of the switch currency. but overall we've seen very, very low interest rates for a long time. and now suddenly we've seen interest rates rise very quickly, particularly in the u. s. and that is going to break some things that's going to break. some banks are very dependent on interest rates. it's a very core part of their production process. and as you see big changes that some banks are not going to be able to keep up compound with that, i think a credit was done some hold the bunch of damage to itself outside of anything as the b is done. so or anything related the b. so there's been some monumental

credit suisse? we have seen troubles with some us banks already but why credit suisse? d can these jitters in the banking world to be contained? figs jitters in the banking world to be contained? �* , jitters in the banking world to be contained?— jitters in the banking world to be contained? �* , , ., contained? as we 'ust heard there, it is auoin contained? as we 'ust heard there, it is going to — contained? as we 'ust heard there, it is going to be _ contained? as we 'ust heard there, it is going to be a — contained? as we just heard there, it is going to be a question - contained? as we just heard there, it is going to be a question of - contained? as we just heard there, it is going to be a question of time | it is going to be a question of time to see if the jitters in the banking sector can be contained. nobody quite knows the answer to thatjust yet but we are seeing a big sell—off of financial stocks on european markets this morning. we are seeing big falls in the share prices in the likes of ba rclays, big falls in the share prices in the likes of barclays, prude

bank. credit suisse secured a big financial lifeline. now, concerns over the troubled lender had earlier sent asian stock market's falling credits. lisa said it will borrow up to 50000000000 euros from switzerland central bank in a bit to shore up its liquidity, meaning how much cash it has on hand to finance its business. now the sudden collapses of to us banks last week of sparks growing fears worldwide. cheaters on the market, sent many asian stocks into the red again on thursday. investors are where really eyeing the problems that have hit several banks in the us and europe. wondering if they're just the 1st signs of a deeper crisis. the latest alarm bells have been standing around credit suisse, one of europe's largest banks, pro macroeconomic perspective credits. he says, major global player, major player in the us. smaller than it used to be, but still very important. shares of the swiss bank plunged to a record low on wednesday after it's the biggest shareholder said it would not provide more funding to the company. the dive promp

credit suisse. executives at jpmorgan and other big banks say the risk of credit suisse' woes is likely limited since a year plus, to prepare for its possible implosion given its long item standing problems. obviously, there's unfore foreseen circumstances,. liz:, but this is quick like likely to be a lehman moment, so to speak. so just a little bit of color here, you know? clearly, the banking system, you know, has been preparing for this for a while. so, you know, and that mustn't mean, you know, there's not successic risk, but i'm -- systemic risk, but they've been watching thing. it's be a weird slow burn concern the. liz: so slow motion if slash crash, and yet the dow is down 445 points. i know it's it's off the plows -- low, but on any given hay that would be frightening for people. >> there's other problems that which aisle going to go through in about a minute here. jpmorgan toker and oig banks are unlikely to help? and boy first republic if. there's been lots of talk about them going in and buying first remix. here's some of the hurdles. this would be are dig peel they just do not want the b

switzerland's biggest bank ubs has agreed to take over its troubled rival, credit suisse. eal follows a weekend of emergency talks between the two banks, after credit suisse saw its value plummet over the past week. banking regulators hope the deal will restore confidence to the financial markets. credit suisse had been caught up in the market uncertainty triggered by the collapse, nine days ago, of america's silicon valley bank. here's the swiss president speaking at a press conference. on friday, the liquidity outflows and market volatility showed it was no longer possible to restore the necessary confidence, and that the swift and stabilising solution was absolutely necessary. this solution is a takeover of credit suisse by ubs. it is supported by the federal council, following several meetings with the swiss national bank, with our regulator, with credit suisse and ubs. the federal council welcomes this takeover, and support it, by guaranteeing the framework conditions necessary for its success. the federal council is therefore confident that in this difficult situation

shares in credit suisse fell by more than 60% this morning after european markets opened and the value of bankingd sharply. and us markets have opened largely flat. credit suisse was bought by rival swiss bank ubs in a deal brokered by the swiss government over the weekend. well, joining me now is theo leggett, the bbc international business correspondent. c0, there was a real sense of urgency to get this done on a sunday. normally not a day when these things go on. did it achieve what they wanted it to achieve and calm the markets?— what they wanted it to achieve and calm the markets? well, it depends what they wanted _ calm the markets? well, it depends what they wanted to _ calm the markets? well, it depends what they wanted to achieve - calm the markets? well, it depends what they wanted to achieve here. l calm the markets? well, it depends| what they wanted to achieve here. if you think back to a little over a week ago, credit suisse was a bank that was seen as weak, it has been mired in scandalfor years, that was seen as weak, it has been mired in scandalforyears, it that was seen as weak,

credit suisse crisis? can they be active today to help their beleaguered bank? e active today, even if the assistance is delegated. the problem is that credit suisse by some standards might be too big to fail, but also too big to be saved. it is unclear if a federal system has enough resources to engineer a bailout. what they need certainly is more capital. the question is whether they will get that or not. otherwise bad things can happen. jonathan: bad things are happening this morning. i would love your take on this. some people may be looking up, looking at what is happening with credit suisse, here in the united states and thinking, why is this important? can you explain why -- how important credit suisse might be to the financial system? nouriel: it is important, because we are talking about $700 billion. anything that happens to credit suisse will be a systemic effect for not just the european financial system, but also the global financial system. if silicon valley bank created ripple effects, something bad happening to credit suisse would be an order of m

credit suisse's rescue. tom m.: yes, ralph hamers seeing everything you wanted to say, the world has changed, and ubs has effectively de-risked, more of a simple bankedit suisse being absorbed. for ralph hammers, probably a sweet moment, but what he can look at as he was able to rescue credit suisse in ubs' package, and i am sure he has a good farewell package as well. francine: we are getting breaking news and it feels like the chairman is driving this. we are told he is one of the smartest to the point chairman. used to be the president of morgan stanley for many years. nothing that we did not know, and he also says this is not a swiss solution but a global one. it is interesting because he started by saying he spoke to sergio ermotti a week monday, so they discussed the merger and they wanted someone different from ralph hamers that would push it through. tom m.: fair to say that the chairman is behind this. there are a number of things working in ermotti's favor. number one, how he knows ubs' business and the skill set. it will not be easy and there will be a hard decision on job cuts and also the unwinding of an extremely complex transition. a

health of the global banking system. absent asians talk markets palling after shares and swift bank credit suisse plunged to record lows. the troubled lender has said it will borrow up to 15000000000 euros from switzerland central bank and a bid to shore up its liquidity. or how much cash it has on hand to finance has been this sudden multi $1000000000.00 collapses of to b. u. s. banks last week of sport, growing fears about the stability of the banking sector. while for more we've got rob watts from dw business with us here in the studio. rob, how alarming is this development with credit suite? well, it certainly had alarm bells ringing because what we have here is a major international bank having to seek help from a central bank. that's something that we have not seen since 2008 and the global financial crisis. but we have heard the central bank in switzerland and also the swiss financial regulator and credit suisse themselves all trying to delay the fears a because it is fear that ultimately drive down. stock prices, credit suisse says that it does have enough liquidity, and the $50000000000.

banks have been up to. they have moved globally to keep credit flowing after an unsettled period in the us banking sector and the credit suisseg the bank of england and the us federal reserve announced they would boost the flow of us dollars through the global financial system. to talk us through why this is needed i'm joined byjustin urquhart—stewart, founder of the investment platform regionally. another very familiar face and a veteran when it comes to all these things. just talk us through what central banks are doing now until the end of april and why that is important. i5 april and why that is important.— april and why that is imortant. ., important. is a fascinating development, _ important. is a fascinating development, because - important. is a fascinating development, because it. important. is a fascinating - development, because it really reflects what is happening with technology stop because depositors can withdraw money so quickly out of banks, almost immediately, on the threat of anything occurring, therefore central banks have got together and organised a mechanism for global access to us dollars. they have ap

much for joining as we begin this news are with talks to save, one of the world's largest banks, credit suisse officials are meeting to discuss the plan to rescue the bank. on wednesday, the swiss national bank offered it a $54000000000.00 lifeline, but that failed to reassure markets. credit suisse is deemed too big to fail because of its importance to the global bank in system hello swiss dr. u. b. s is reported to be an advanced talks to take over its beleaguered rival. a government announcement is expected in 30 minutes. cisco live to paul brennan, whose following developments from london for i saw what more you hearing bowl about these talks and the fate of courtesies while it seems the starter aligning. as far as the takeover of credit suisse now by you be asked frankly, the only other alternative was a kind of nationalization by the swiss national bank and not frankly oh, by the swiss government. i'm not really wasn't attracted option. so after u. b. s seems to have doubled its offer for credit suisse from the $1000000000.00 that it was reported to have offered earlier in the week now t

banks? how easy will it be for ubs to take over credit suisse? i banks? redit suisse?- to take over credit suisse? i have to take over credit suisse? i have to sa , to take over credit suisse? i have to say. it's _ to take over credit suisse? i have to say. it's early _ to take over credit suisse? i have to say, it's early days, _ to take over credit suisse? i have to say, it's early days, but - to take over credit suisse? i have to say, it's early days, but i - to take over credit suisse? i have to say, it's early days, but i don't| to say, it's early days, but i don't think it's going to be easy. ubs is the bigger of the two, but both of them are already huge. if you look in switzerland, both of them have at least one branch. in every town. we're looking certainly at probably thousands ofjob losses because what is the point of having two branches of the same bank in a small town or village? that's clearly not going to happen. but i think if you look globally, there's going to be a lot of scrutiny now. these are both globally important banks. now it will

bank. credit suisse secured a big financial lifeline. our concerns over the troubled lender had earlier than asian stock market's falling. credit suisse has said it will borrow up to 50000000000 euros from switzerland central bank and a bid to show up it's liquidity, meaning how much cash it has on hand to finance is business. the some collapses of to us banks last week have sparked growing fears. world wide jitters on the market, sent many asians stalks into the red again on thursday. investors are where really eyeing the problems that have hit several banks in the u. s. and europe, wondering if they're just the 1st signs of a deeper crisis. the latest alarm bells have been sounding around credit suisse, one of europe's largest banks. throwback regular perspective, crowds research, major global player, major player in the us are smaller than used to be with still very important. shares of the swiss bank plunged to a record low on wednesday, after its biggest shareholder said it would not provide more funding to the company . the dive pro

the issue of credit suisse in theory, this is a globally systemically important bank. we need to pay attention. is that consistent with price action? how systemic is credit suisse? we will try and figure out an answer to that question. the ecb tomorrow. it is credit suisse a globally systemically important institution? how much should we be worrying? jp: with its size and connections, it is. this is more a repricing of earnings expectations to me. is there an element of mistrust or concerns about liquidity of the system? maybe so. may lower rates going forward? everyone was cozy with european banking stocks -- now it is getting repriced. i wouldn't be concerned we were facing another crisis like we saw 50 years ago. with the banks, it is always critical. alix: you have headlines from the journal that ecb officials are asking people about their exposure. there are concerns bubbling up and i am wondering is the market functioning so far? where would you be trying to track faultlines? justina: crazy day. textbook case of risk aversion today, very different from last year.

bank turmoil changed its calculation? earlier, i spoke to hal lambert, a former director at credit suisse. were significant concerns about the future of the bank. the bank has been poorly run for a very long time and when you have poorly run banks and a credit situation like we're having now globally, those are the banks that tend to run into problems. there is a big that with credit suisse they potentially defaulted, that could have ramifications for other banks because they are all interconnected, they are loaning to each other, doing cross trades with each other, so there are other banks that will have exposure to credit suisse, but this loan evidently from the swiss national bank, they will use those funds to buy back some of their debt is what i've read. perhaps they will try shore up the debt that was trading at very big discounts because people, there is a probability right now in the market, a 45—50% chance of default by credit suisse so they will step into try to buy some of their own bonds. i don't think it will end with this. there will have to be more done. you mentioned the ne

thanks a lot for joining us on the program markets were calmed by news that credit suisse was seeking this help from the central bank, but does credit suisse have a liquidity problem. hello, i'm any banks will have a liquidity problem if those which have deposits at once and altogether take the money out. so in theory, any bank, if it is being ganged up on by the positive could fail. now, fundamentally, the numbers at credit suisse, i'm not looking worse than it would be for bank that doesn't look to be particularly well managed. i mean, it's a lot a lot. it has lost a lot of value over the last year. not just the last few days. it's lost 70 percent of its share price in the last year. and so yes, it is the bank that it's in trouble. but yes, it's also a bank that seems to be doing the right things to get out of it. so injecting some liquidity is the usual thing that's been done. and my guess is that if they can turn around the business model, they should be fine in the future. and that's what they're, what they've said is what they're doing. but how much can what we're seeing with credit suisse over the past 24 hou

bloomberg spoke with the saudi national bank of chairman, one of credit suisse, and asked if it would provide more assistance to the struggling bank. take a listen. >> the answer is absolutely not. for many reasons. outside the simplest, which is regulatory and statuary. 9.8% of the bank, if we go above 10%, all kinds of new rule kick in, whether it be regulator, the european regulator or this was you later, and we are not inclined to get into a new regulatory regime. kriti: sonali basak has followed this all day and joins us on set. this is a story of liquidity at its core. if you are not getting it from the saudi's, what are the options? sonali: it is a liquidity story but credit suisse is very liquid. the problem is if they needed more money or if they faced more deposits, they are in serious strain because they are hitting revelatory limits. that was dashed regulatory limits. that was the router where the saudi national bank's comments came from, the idea that they have regulatory caps, not strategy necessarily. that sparks what we have been seeing, the confidence everyone has bee

then a week later, this banking giant credit suisse. so a few things here, if you can address for our international audience, these so called regional banks, s b b, signature and silver gate. they've got an international component to their business models as well. get into that for us. and why did us regulators allow these banks to fail? whereas in credit suisse case, the e. c, be prevented them from folding. so it's a lot to digest and respond to manila. but certainly all important question. with respect to the regional banks, there reaches beyond the united states. i think mostly we're talking about silicon valley bank where s p b and silver gate. actually be is the cornerstone of the venture capital community. and although the venture capital capital largely comes from us, venture capital managers or venture capital funds, their investors in turn to venture capital funds, get their money from lots of different places all across the world. sovereign wealth funds, you know, in various countries, foundations high net worth. ready individ

switzerland's biggest bank, ubs, is in advanced talks to buy all or part of its troubled rival credit suisse. president vladimir putin visits mariupol, the ukrainian city which was captured by invading russian forces last year. the financial times is reporting that the country's biggest bank, ubs, has offered to buy credit suisse for up to $1 billion, although bloomberg reports that credit suisse sees that as vastly undervaluing the bank. the swiss banking giant had been caught up in the market uncertainty triggered by the collapse, nine days ago, of america's silicon valley bank. it had been offered an emergency credit facility of more than $50 billion by switzerland's central bank, but that had not prevented a sharp fall in its share price. our business correspondent marc ashdownjoins me now. an urgency around these talks in switzerland to try and facilitate this takeover by ubs.— this takeover by ubs. yes, the shares were — this takeover by ubs. yes, the shares were sliding _ this takeover by ubs. yes, the shares were sliding all- this takeover by ubs. yes, the shares were sliding all las

the world's leading central banks have launched a co—ordinated response to keep credit flowing after an unsettling period in the us banking sector and the credit suisseengland and the us federal reserve announced they would boost the flow of us dollars through the global financial system. our business reporter jonathanjosephsjoins me. what more can you tell us about the central bank response and why they think it is the right move? what central bank response and why they think it is the right move? what the central bank — think it is the right move? what the central bank response _ think it is the right move? what the central bank response is _ think it is the right move? what the central bank response is about - think it is the right move? what the central bank response is about is i central bank response is about is trying to make sure there are enough dollars in the right place at the right time to insure —— to assure that investors their money is safe. investors typically try to move their money into us dollars because they are regarded as the safest in terms of investment opportunity. they have the us government behind them, and that is regarded

banks to fail? whereas in credit suisse of case, the e. c be prevented them from folding. so it's a lot to digest and respond to manila. but certainly all important questions with respect to the regional banks. there reaches beyond the united states, i think mostly we're talking about silicon valley bank were s p b and silver gate. actually be is the cornerstone of the venture capital community. and although the venture capital, the capital largely comes from us, venture capital managers or venture capital funds, their investors in turn to venture capital funds, get their money from lots of different places all across the world sovereign wealth funds. you know, in various countries, foundations high net worth. ready individuals and so forth. and then the other thing which i think is more public, is the fact that the ventures themselves that those venture capital funds invest in are located in all different places around the world. and technology hub around the world has venture capital driven investments there. and those venture capital investments may have very well banked

since banking shares were hunted in both europe and new york that comes after credit suisse banks stock ponds rattled global markets with the swift central bank stepping in with a $53000000000.00 lifeline. versus credit suisse is biggest shareholder, saudi national bank, so they wouldn't boost its share past the current level of just under 10 percent. not triggered to fall off 30 percent in credits, we shares. and so no cause, just as the cross financial markets, sparking a slope in major indices which comes hot on the heels of financial turmoil in the u . f. where the collapse of 2 major banks has sent ripples throughout the financial world ought to contribute to rachel marston. has more the failure of silicon valley bank in the united states is sending shock waves through europe's financial system . and it's also sending its bank stocks into free fall on wednesday with the european press, making the link between the u. s. crisis and new trouble for europe's banking sector. credit suisse had dropped on zurich, stock market by mid day. it's top investor, the saudi national bank said tha

credit suisse by ubs. it is supported by the federal council, following several meetings with the swiss national bank, withor, with credit suisse and ubs. we welcome this takeover, and support it, by guaranteeing the framework conditions necessary for its success. the federal council is therefore confident that in this difficult situation, the takeover of credit suisse by ubs is the best solution for restoring the confidence that has been lacking in financial markets recently, and for best managing the risk to our country and its citizens. so why is this deal so important? here's our business editor, simonjack. well, editor, simon jack. how well, editor, simonjack. how come credit suisse became well, how come credit suisse became the biggest and most important casualty of a situation that has already seen the failure of two mid—size us banks, silicon valley and signature bank, and the emergency whip round for another, first republic bank. the main reason behind it all is this, global interest rates, these are us interest rates, after many years have been close to zero, have rocketed, as countries have trie