SVB collapse LIVE: Credit Suisse CEO says bank has no material exposure to SVB credit after dire financial report tanked share price
Follow along as DailyMail.com reporters detail all of the effects of the bank collapse as markets continue to reel on Tuesday.
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In an essay for DailyMail.com, former Vice President Mike Pence slammed Democrats for their policies which he said led to Silicon Valley Bank’s collapse on Friday.
He writes: ‘Just like in 2008, the cause of the current panic is excessive risk taking in the private sector that has been aided and abetted by government. To recap the 2008 fiasco: Congress pushed hard to expand homeownership and encouraged relaxed lending standards.
‘Banks subsequently underwrote risky mortgages to subprime borrowers, which were then purchased by the government-sponsored firms Fannie Mae and Freddie Mac and repackaged into mortgaged backed securities. When subprime borrowers began to default, the whole system melted down along with our entire economy.
‘This time, the characters and setting are slightly different, but the plot remains the same. Under the Biden administration, Democrats have increased spending by over $10 trillion – more than the economies of Japan, Germany and Australia combined.
‘This spending spree fueled record inflation, inevitably requiring the FED to raise interest rates.’
Silicon Valley Bank’s new CEO emailed customers to tell them it’s ‘business as usual’ despite the ‘extremely challenging’ past few days – as employees were left asking how their former bosses could make ‘absolutely idiotic’ errors of judgement.
Tim Mayopoulos was named as the new chief executive officer on Monday morning, after the government fired the existing managers including boss Greg Becker.
‘Silicon Valley Bank, N.A. is open and conducting business as usual,’ wrote Mayopolous, in an email to all clients sent on Monday afternoon.
The banks rebounded in premarket trading this morning with shares rising up to 50 percent after dramatic slides yesterday that sparked contagion fears after the collapse of Silicon Valley Bank.
Regional banks that suffered in yesterday’s bloodbath were heading toward the green. First Republic Bank leapt as much as 51 percent in premarket action after a record 62 percent drop. PacWest climbed 40 percent and Western Alliance rose 22 percent.
The Big Four of trillion-dollar banks were all trending higher. Bank of America was ticking over 3.6 percent, Citigroup moved north of 2.5 percent, JP Morgan Chase hiked 1.9 percent and Wells Fargo made a 3.2 percent stride to the good.
Credit Suisse Group AG isn’t at risk from the collapse of Silicon Valley Bank, CEO Ulrich KKoerner said Tuesday, after shares of the Swiss lender hit fresh lows this week.
‘Our credit exposure to SVB in particular is not material,’ Koerner said at the Morgan Stanley European Financials Conference.
Credit Suisse stock has lost nearly a fifth of its value in the past four days, as the failure of three US regional lenders prompted concerns about banks’ vulnerability to rising interest rates.
SVB’s seizure Friday, the largest US bank failure since the financial crisis, was precipitated by fleeing depositors and sent shock waves across the global financial system.
As a systemically important bank, Credit Suisse follows ‘materially different standards’ in terms of capital strength, funding and liquidity, Koemer said. He said the lender had CET1 capital ratio of 14.1 percent in the fourth quarter and a liquidity coverage of 144 percent that has since increased.
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