![]() ![]() Moving the bank’s credit rating further into junk territory, S&P said the lender’s recent $30bndeposit infusion from 11 big banks may not solve its liquidity problems.Įurozone regulators also issued a statement on Monday morning in an attempt to reassure markets that the Credit Suisse deal has not changed their position on the hierarchy of debt when a bank fails. The losses followed a further downgrade to its debt by S&P Global. Shares in the troubled San Francisco-based bank First Republic tumbled more than 18% even as most US banking stocks gained. It said it was putting together a team of lawyers from Switzerland, the US and the UK. The global litigation firm Quinn Emanuel Urquhart & Sullivan announced it was in discussions with a number of holders of Credit Suisse’s AT1 capital instruments about possible legal action in response to the terms of the rescue deal. The earlier jitters on European markets were partly prompted by the terms of the rescue deal, which saw holders of $17bn of Credit Suisse’s bonds – additional tier 1s (AT1s) – wiped out, while equity investors were not as badly affected. ![]() On Monday, the Wall Street Journal reported that the JP Morgan chief executive, Jamie Dimon, was leading talks with the other bank bosses to pump more cash into the ailing San Francisco-based lender. That bailout encompassed 11 of the biggest names in US banking, including JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs. US banking stocks were also up in early trading, with the notable exception of shares in First Republic Bank, which slumped more than 17%, after reports it may need to raise more funds despite a $30bn (£24bn) rescue last week. UBS rebounded to be up 2% after the deal to rescue its fellow Swiss bank and rival Credit Suisse over the weekend. Standard Chartered and Barclays were still down, by 3% and 2.3% respectively.Įuropean banking shares as measured by the Stoxx Europe 600 Banks Index were up 2% on Monday afternoon, after falling 3% during the morning. London-listed banking shares also mainly recovered to positive territory, after a heavy sell-off first thing. The FTSE 100 closed up 68 points higher, after starting the day firmly in the red.
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