The Nice Monetary Collapse of 2023. Comparability of Bear Stearns’ collapse in March 2008 and Credit score Suisse in March 2023.

by kindred_asura

In March 2008, the New York Federal Reserve offered an emergency mortgage to attempt to avert a sudden collapse of Bear Stearns. The corporate couldn’t be saved, nevertheless, and was offered to JPMorgan Chase for $10 per share, a worth far beneath its pre-crisis 52-week excessive of $133.20 per share, however not as little as the $2 per share initially agreed upon.

The collapse of the corporate was a prelude to the meltdown of the funding banking trade in the USA and elsewhere that culminated in September 2008, and the following 2008 international monetary disaster. In January 2010, JPMorgan ceased utilizing the Bear Stearns title.

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In March 2023, the Swiss Nationwide Financial institution offered an emergency mortgage to attempt to avert a sudden collapse of Credit score Suisse. The corporate couldn’t be saved, nevertheless, and was offered to UBS for $0.75 per share, a worth far beneath its 52-week excessive of $8 per share, however not as little as the $0.2 per share initially agreed upon.

The collapse of the corporate was a prelude to the meltdown of the funding banking trade …..

JPMORGAN: THE DECISION TO WRITE DOWN CREDIT SUISSE AT1 COULD LEAD TO CONTAGION FOR WHOLESALE FUNDING COSTS ACROSS THE INDUSTRY.

— Breaking Market Information (@financialjuice) March 20, 2023

CEO of credit score suisse goes on media saying liquidity could be very very robust then sells it to UBS for pennies on the greenback.

UBS shares slide 5%, Credit Suisse craters 60% after takeover deal

Fed, Central Banks Announce Emergency Cash Measures Sunday

Brace for a ‘crash landing’ as the US economy barrels toward recession, top economist David Rosenberg warns

US banks affect of unrealised losses

S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problems

If market participants are wringing their hands over the potential fallout from the collapse of Silicon Valley Bank, just wait until they look at the banking industry’s exposure to the rapidly weakening commercial real estate sector.

The UBS credit score default swaps (insurance coverage on default) are actually going vertical.

So who buys out UBS if they’ve a difficulty? pic.twitter.com/tCRKfSIus2

— Wall Avenue Silver (@WallStreetSilv) March 20, 2023

Whereas everybody was distracted by SVB they missed Credit score Suisse.

Whereas everyone seems to be distracted by Credit score Suisse they’re lacking Wells Fargo.

— Financelot (@FinanceLancelot) March 20, 2023