Markets. because inflation has come back we have seen a major sea change in the interest rate backdrop, the federal reserve and others all raising rates and that has created a huge change in a backdrop in terms of the lending environment and that is part of the reason why we saw the collapse of silicon valley bank, that has caused quite a bit of nervousness, and some panic. there was a run on that bank and now the woes facing credit suisse have intensified in the last few days, saying it faced material weakness in its financial statements, its biggest backer saying it was not ready to provide financial support, rather unfortunate timing that we have had these two events around the same time and of course that can lead to emotions amongst investors, like you say, can be an element of panic selling by the blessing to do is keep calm and carry on. finally, what does is keep calm and carry on. finally, what does this is keep calm and carry on. finally, what does this mean is keep calm and carry on. finally, what does this mean for is keep calm and carry on. finally, what does this mean for the i is keep calm and carry on. finally, | what does this mean for the regular person, we talked out little bit today about how lenders may be more reluctant to extend credit in the form of mortgages, what about
Lot of roles that have accumulated ever since the bank took over and the first boss didn t understand the risk in 1990 and it has gone on and on since then. it s the interest rate linked, the svb, the us banks, thatis rate linked, the svb, the us banks, that is interest rates linked. you need depositors and investor confidence and if you lose that then you lose your shirt. you confidence and if you lose that then you lose your shirt. you lose your shirt. you said credit suisse didn t you lose your shirt. you said credit suisse didn t understand you lose your shirt. you said credit suisse didn t understand the - you lose your shirt. you said credit suisse didn t understand the risk i suisse didn t understand the risk involved when it took over a us bank a number of years ago. but of course excessive risk taking was one of the characteristics of the financial crash of 2008 along with irresponsible lending. there were a number of the critiques of the banking sector at that time. have enough lessons being learned since 2008 to stop something of that order happening again? it s 2008 to stop something of that order happening again?
Were given credit by banks. any hint of volatility now makes people think of volatility now makes people think of that period. do you think the regulations are in the banking sectors are much better now than they were then? they were then? well, i think it s clear there they were then? well, i think it s clear there are they were then? well, i think it s clear there are some they were then? well, i think it s clear there are some parallels i clear there are some parallels between what we are seeing now and 2008 of course. there s been a lot of turmoil in the sector, notjust with credit suisse, but also with the collapse of silicon valley bank and the wider ramifications of the regional banks stateside last week. like you say, the rate of saudi backed today is much stricter capital requirements for banks these days, and the restrictions on some of their riskier activities. secondly i think the woes facing credit suisse are rather idiosyncratic to the bank itself. it s idiosyncratic to the bank itself. it s been embroiled in a series of scandal after scandal relating to the collapse of green cell capital, another us hedge fund, allegations
Of financial stocks on european markets this morning. we are seeing big falls in the share prices in the likes of ba rclays, big falls in the share prices in the likes of barclays, prudential, standard chartered, natwest and hsbc here in london and german banks such as deutsche bank and commerzbank and similar moves in paris with the likes of bnp paribas. credit suisse, having these problems, it has had problems going on for a number of years. it had a chairman who resigned for breaking covid rules. it was involved in a bribery scandal in mozambique was a bit at multibillion dollar losses in investment funds including us hedge fund. it was found guilty over allegations of laundering money linked to bulgarian drug traffickers will stop it has been involved in corporate espionage claims that it had to settle and tax evasion claims in the us. quite a list there and all these problems have ended up costing money and sapping investors confidence in what was switzerland s second biggest bank. what confidence in what was switzerland s second biggest bank. second biggest bank. what does it mean for the second biggest bank. what does it mean for the regular second biggest bank. what does it mean for the regular person - second biggest bank. what does it mean for the regular person and l second biggest bank. what does it. mean for the regular person and what
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Listen hand and that they will act if necessary. listen hand and that they will act if necessary- if necessary. that is true, if you no back if necessary. that is true, if you go back to if necessary. that is true, if you go back to the if necessary. that is true, if you go back to the start if necessary. that is true, if you go back to the start of- if necessary. that is true, if you go back to the start of the - if necessary. that is true, if you | go back to the start of the week, credit suisse, switzerland s second biggest bank, but it has had a rocky few years with money being taken out of it, and the biggest shareholder, the saudi national bank, said they would not put any more money on. they were not worried about the turnaround, but had reached the threshold of almost 20% it did not want to go above it. that did spook the markets, we have had turmoil over the last few days, which adds the turmoil we have had over the last week. people wanted to take their money out, in effect, and there was the worry that if the biggest investor was not going to put money in, whether the money come from? yesterday the share price of credit suisse collapsed overnight, then the swiss central bank stepped