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Copy me that app store11/11/2023 Martin Arnold at the Financial Times suggests a few reasons to worry: Credit Suisse had healthy capital and liquidity ratios - both only slightly below eurozone averages last year - but that did not save it once confidence evaporated and many European banks have been generating returns below their 9% cost of capital. HSBC and Standard Chartered stock fell in Asian trading overnight and major European banks including Deutsche Bank, SocGen, and Credit Agricole are down this morning. The real danger, though, is that after the bailout the first C takes centre stage and that contagion leads to a broader shakedown. But what happens to all the Credit Suisse tech staff and to the thousands of employees in the enormous corporate centre? - $8bn of additional cost cuts don't happen on their own. Only Credit Suisse's US investment bankers, and in particular its US tech investment bankers, look welcome at the juiced-up UBS, along with its Asian wealth managers, maybe. Credit Suisse's European investment bankers face an uncertain future too. It's hard to see how events of the weekend can be good news for jobs in the banking sector.Īs we reported yesterday, Credit Suisse's sales and trading jobs look precarious by virtue of being moved into the newly invigorated non-core unit. What now? Mohamed El Arian has deployed the B-word (bailout) about yesterday's takeover of Credit Suisse by UBS, implying that the two C-s of contagion and crisis may not be far behind.
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