The government and the Banque de France still want to be reassuring on Monday morning about the solidity of French banking establishments, subject to very strict rules, while Credit Suisse collapsed by more than 60% at the opening of the markets while European stock markets open. in the red before turning slightly back to green.
After intense negotiations, the Swiss bank UBS announced on Sunday the takeover bid of its failed competitor for 3,040 million euros. The objective: “to restore trust”. A confidence that however seems to falter in the markets at the beginning of the week with, among others, the French banks showing a fall in the stock market.
French banks are “very solid”
Unlike the stock prices, the Minister of the Economy, Bruno Le Maire, did not hesitate this morning before the BFMTV microphone: “French banks are solid.”
Banque de France Governor François Villeroy de Galhau echoed his earlier words on France Inter: French banks are “very solid.”
Watch out anyway because Credit Suisse is one of those “too big to fail” banks whose failure could shake up the financial sector as a whole.
The French insurance group AXA also wanted to reassure its investors and clients this Monday morning. According to the Reuters news agency, he said he only had limited exposure to around 600 million euros in the capital of the Swiss establishment.
Credit Suisse in crisis
The second largest Swiss bank unscrewed for the first time on the stock market late last week following a statement by Ammar al-Khudairy, the president of the Saudi National Bank, which is its largest shareholder. He said he had “absolutely no” plans to pump more money into the Zurich bank.
The banking sector was already concerned after the closure of two US banks, Silicon Valley Bank and Signature Bank. To this, Credit Suisse has been facing several losses and scandals for several months.
Thus, Switzerland forced the marriage of UBS and Credit Suisse over the weekend to save its financial system. The 3,040 million offered for the purchase represent a discount of 59% on the price of CS shares at the close of Friday.
Source: BFM TV
