Happy Monday to all you Basis Pointers, although bank unhappiness continues even after $3.25 billion shotgun wedding between UBS and Credit Suisse last night.
Credit Suisse is one of the
30 most systemically important banks, so the Swiss government provided UBS with a $9.7 billion loss backstop and $108 billion in liquidity to get this deal done.
Then U.S. markets opened, and First Republic stock resumed last week's 72% slide. Wall Street started talking about a First Republic sale Friday, and since 11 banks worked with Treasury, Fed, FDIC, and OCC to deposit $30 billion to backstop First Republic already, a government brokered deal here seems possible.
We discuss that in a piece below. And after Swiss finance minister said "This is no bailout," we also address this debate when government helps in these crises.
What's your take? Please reply or comment on the posts.