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The stock of Julius Baer Group, which became the country's second-largest bank by assets after Credit Suisse's collapse, rose by 13% during the week after the UBS acquisition. [69] The takeover resulted in $17 billion of Credit Suisse-issued AT1 bonds being written off as worthless, which undermined the creditworthiness of the newly acquired bank.
Credit Suisse was also a primary dealer and Forex counterparty of the Federal Reserve in the United States. Credit Suisse was founded in 1856 to fund the development of Switzerland's rail system. It issued loans that helped create Switzerland's electrical grid and the European rail system.
Worries over contagion across the sector ramped up, with stock markets tumbling in the UK, Europe and in the US as Credit Suisse's woes came shortly after the Silicon Valley Bank collapse in America.
Before the Archegos collapse, Hwang was believed to be worth $10–15 billion, with his investments leveraged at 5:1. [12] In March 2021, as Archegos Capital Management faced mounting margin calls due to declining stock prices, several prime brokers, including UBS and Credit Suisse, urged Bill Hwang to liquidate positions to mitigate losses.
Credit Suisse stocks plunged to a new record low, dropping by more than 21 percent on Wednesday morning as the fallout from the collapse of Silicon Valley Bank (SVB) continues.
Credit Suisse dropped about 30 per cent on the on the Swiss stock exchange Wednesday after Wall Street expert Robert Kiyosaki tipped it as the next major bank to collapse
One month before the events in the United States, Credit Suisse had announced its largest annual loss since the 2008 financial crisis, as clients continued withdrawing their cash at a rapid pace; $147 billion had been withdrawn in the fourth quarter of 2022. It also disclosed it had found "material weaknesses" in its financial reporting.
The concerns about Credit Suisse added to broader banking sector fears sparked by last week's collapse of Silicon Valley Bank (SVB) and Signature Bank, two U.S. mid-size firms.