Europe breathes after the rescue of Credit Suisse

The european bags they behaved like a roller coaster, after a hectic weekend that ended with the rescue of “Credit Suisse” and the intervention of the main central banks of the world that went out into the field to provide greater liquidity to the financial system.

Volatility was the watchword of the indices that followed the evolution of the buyer “UBS” step by step, after the maxi bailout of “Credit Suisse” which lost -55% on the Zurich stock market while last week it capitalized between 6,000 and 7,000 millions.

UBS, considered the main Swiss bank, buys its bankrupt competitor for 3,000 million Swiss francs, in an “in extremis” agreement reached over the weekend and closed yesterday Sunday, which started 9 points down, losing 12, therefore which turned positive (+5.5%) and ended with an increase of approximately 1 point. And the European indices, as well as the values ​​of the banking sector, followed the same trend, starting with a loss and closing positive.

European authorities

In this context, The speed with which authorities across Europe acted to reassure investors made an impact, starting with regulatory institutes and government representatives.

In Italy, the Minister of Economy Giancarlo Giorgetti He spoke of “insignificant repercussions for the country.” However, doubts persist among markets, investors and observers about the effectiveness of the rescue, about the details of the operation and about a possible contraction in bank liquidity, which could lead to fewer loans to companies and households and less remuneration to shareholders, also with the risk of contagion and jeopardizing the stability of the system, with the ghost of Lehman Brothers hovering in memory

Lagarde asked banks to prepare for more difficult times

“European banks must prepare for slower economic growth, higher financing costs and lower loan volumes,” the President of the European Central Bank said today. christine lagardewho spoke of the stability of the system and stressed that “the Eurotower is ready to intervene to guarantee liquidity and stability.”

“Individual financial institutions must carefully preserve their current levels of resistance, to ensure that they can weather a potentially less favorable environment,” Lagarde told European parliamentarians this afternoon.

In Europe, the bankruptcy of the giant Credit Suisse, a very powerful bank in the global collective imagination, caused a great impact in a Switzerland that is considered the safe place to repair the world’s savings and finances.