Credit Suisse shares jumped more than 30 percent when markets opened early Thursday, as investors appeared reassured by the offer of a liquidity lifeline for the lender from Switzerland’s central bank. The bank’s stock was still up about 22 percent around 11 a.m. central European time, though it remained below its precrisis value.
The rally came after Credit Suisse said early Thursday that it would borrow up to $53.7 billion from Switzerland’s central bank to support its business, amid continued fears of market contagion from the collapse of Silicon Valley Bank. The troubled Swiss bank is much larger and more enmeshed in the global financial system than SVB and Signature Bank of New York.
Later Thursday, Treasury Secretary Janet L. Yellen is set to testify before U.S. lawmakers. Her testimony, starting 10 a.m. Eastern time, was scheduled before the ongoing turmoil and was intended to discuss President Biden’s 2024 budget. However, lawmakers are likely to grill her on the fallout and any risks to the U.S. financial system.
Source link: https://www.washingtonpost.com/business/2023/03/16/banking-crisis-credit-suisse-svb-yellen/