“People are all examining their books, what open positions
we have with Credit Suisse,” the source said.
The European Central Bank (ECB) had contacted banks on its
watch to quiz them about their exposures to Credit Suisse, two
supervisory sources told Reuters.
CEO, Ulrich Korner, told Channel News Asia on Wednesday: “We
are a strong bank. We are a global bank, under Swiss regulation.
We fulfill and basically overshoot all regulatory requirements.
Our capital, our liquidity basis is very strong.”
(Reporting by Lananh Nguyen, Tatiana Bautzer and Saeed Azhar in
New York; additional reporting by Davide Barbuscia; Editing by
Megan Davies, Leslie Adler and Josie Kao)
(Changes headline from "is manageable" to "as manageable")
By Lananh Nguyen, Tatiana Bautzer and Saeed Azhar
NEW YORK, March 15 (Reuters) - Large U.S. banks have
managed their exposure to Credit Suisse in recent
months and view risks from the lender as contained so far,
according to three industry sources on Wednesday who declined to
be identified because of the sensitivity of the situation.
The industry sources spoke before Swiss financial regulator
FINMA and the nation's central bank said on Wednesday that the
Swiss National Bank would provide Credit Suisse liquidity "if
necessary", a first for a global bank since the financial
crisis. Credit Suisse said in a statement that it welcomed the
news.
Bank stocks have been on a roller-coaster ride this week
following the collapse of three U.S. lenders including Silicon
Valley Bank and Signature Bank, the second and third largest
bank failures in U.S. history, respectively. Bank stocks tumbled
on Monday after assurances from U.S. President Joe Biden before
jumping on Tuesday on hopes the worst of the market rout was
over.
Credit Suisse shares plunged by as much as 30.8% earlier on
Wednesday, leading a 7% drop in the European banking index . The U.S. Treasury said it is monitoring the situation
at Credit Suisse and is in touch with global counterparts about
it.
A Credit Suisse spokesperson declined to comment.
Bankers were more concerned about contagion or unexpected
effects of the Swiss lender's troubles that are not yet
understood, one source said.
A top U.S. bank is still dealing with Credit Suisse as a
counterparty, but is carefully managing its exposure, which is
small, according to a source.
One asset manager in New York was assessing its trading
counterparty risk with Credit Suisse, according to a source
familiar with the situation.
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