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European banks rise after Credit Suisse secures support from Swiss authorities

Stock Markets Mar 16, 2023 06:06AM ET
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By Scott Kanowsky 

Investing.com -- European banks marched higher on Thursday, spurred on by a jump in Credit Suisse (SIX:CSGN) shares after Swiss authorities promised to provide fresh liquidity to the embattled lender if necessary.

The Euro Stoxx Banks index jumped by more than 1%, highlighted by gains for Santander (BME:SAN) in Spain, Commerzbank (ETR:CBKG) in Germany, and Italy's UniCredit (BIT:CRDI).

The uptick marks a rebound from declines posted on Wednesday that were sparked by an announcement from Credit Suisse's top shareholder that it would not inject any new capital.

But overnight the Swiss National Bank unveiled a 50-billion-franc support line to Credit Suisse, adding that the Zurich-based group met all the standards for liquidity and capital that apply to systemically crucial banks.

They said that there was consequently no risk of contagion to Credit Suisse from the volatility in the U.S. banking system, where three smaller lenders collapsed in the space of a week.

Following the SNB's statement, Credit Suisse stock surged by as much as a record 40%, topping the regional Stoxx 600 index.

 
European banks rise after Credit Suisse secures support from Swiss authorities
 

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Comments (2)
BILL Hinson
BILL Hinson Mar 16, 2023 8:30AM ET
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So they pump government liquidity into a failing bank and now all of a sudden they are a bastion of banking worthy of me depositing my money into it. NOT NO BUT HELL NO
Derick Lim
Derick Lim Mar 16, 2023 6:33AM ET
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Now with Credit Suisse insolvency problem solved it's time for them to demand default payments and compound interest from the lay off workers and unemployed........
 
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