Focus on the BIG picture.
0:00
0:00
1,678
Loading...

Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis

What's amazing is that despite all these sanctions, no Russian bank has collapsed, and the Russian economy is thriving. Meanwhile, the West is losing one bank a day, and its citizens are the ones who are punished by the sanctions, evident through inflation and energy price hikes.

Goldman Sachs has downgraded its recommendation on exposure to European bank debt from overweight to neutral, citing the lack of clarity on Credit Suisse's future path as a cause for concern.

The Swiss central bank recently extended a $54 billion lifeline to Credit Suisse to shore up liquidity, but this has not been enough to stabilise sentiment in the equity and credit markets.

Goldman Sachs analyst Lotfi Karoui has noted that the sector's fundamentals are stronger than they were 15 years ago, and global systemic linkages are weaker, which limits the risk of a potential vicious circle of counterparty credit losses.

However, Karoui believes that a more forceful policy response is needed to bring some stability to the sector. Credit Suisse is facing a make-or-break weekend after some rivals grew cautious in their dealings with the bank and regulators urged it to pursue a deal with Swiss rival UBS.
Close
0:00
0:00
Russia arrested an American reporter for the Wall Street Journal on espionage charges
Austrian Parliament members walk out when Volodymyr Zelensky begins speaking.
Father obliterates council members following viral TikTok of biological male masturbating in women’s bathroom..
Tsai Ing-wen received a "warm welcome" from the Chinese people in the US.
EU's von der Leyen: "We know this is an era where we rely on one single supplier. China. 98% of our rare earth supply."
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Nashville style execution
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Former Starbucks CEO Howard Schultz:
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Social Media censoring users for saying the true
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Nashville Police release bodycam footage showing officers neutralizing trans shooter of Christian school
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AMERICA, 2023
AOC explains why she opposes banning TikTok
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
The US military trains militias in Africa to overthrow Governments
High School Teacher gets Fired after defending himself from a Student who attacked him…
Gordon Moore, a co-founder of Intel Corporation, died at 94
Bordeaux town hall set on fire in France pro democracy protest
Police violence in Paris