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What happened to Credit Suisse and why are banks needing bailouts again? |
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Fears of another 2008-style banking crisis resurfaced this week after banking giant UBS swept in to buy its crisis-hit rival Credit Suisse and US authorities stepped in to broker a £24.7bn rescue package for First Republic. Stock markets have been jittery amid worries that isolated failures could widen to affect the global banking system, reviving bad memories of the financial crisis that plunged many Western economies into recession in 2008-09. The news comes after the collapse last week of Silicon Valley Bank, the second-biggest bank failure in US history. Shares in San Francisco-based First Republic plummeted on Thursday as customers began withdrawing their money fearing it could be the next to fail, but stocks recovered as reports of the rescue package surfaced. |
Some View on the World 