FRANCINE:
WELCOME TO OUR SPECIAL INSURANCE COVERAGE OF THE INTENSE PRESSURES ON
THE INTERNATIONAL FINANCIAL SYSTEM AND THE BANKING MALFUNCTION. I AM FRANCINE LACQUA. EVEN MORE CHAOS IN THE FINANCIAL
GLOBE THIS WEEK WITH CREDIT REPORT SUISSE FRONT AND. WE WILL UNBOX THE BROADER PRESSURES OF THE BANKING SYSTEM
AS WELL AS WHAT EXISTS IN ADVANCE IN TERMS OF GUIDELINE AND CERTIFICATION. THE STORM SWIRLING AROUND CREDIT SCORES SUISSE GOES BACK YEARS. IN MARCH 2021, THE LENDER WAS HIT WITH THE DOUBLE NEWS AFTER
THE LOSS OF ARCHEGOS. THE ZURICH-BASED FINANCIAL INSTITUTION HAS LIKEWISE
BEEN SHOOK BY LEGAL DIFFICULTY AND ALSO INSTABILITY IN THE
EXEC COLLECTION WITH THREE PRESIDENTS AND ALSO MULTIPLE
CHAIRMAN GIVEN THAT 2020. SOME INVESTORS HAVE HAD SUFFICIENT. PARIS ASSOCIATES THE BIGGEST INVESTOR IN THE BANK–
HARRIS ASSOCIATES, THE BIGGEST SHAREHOLDERS IN THE FINANCIAL INSTITUTION, HAS
LEFT AFTER 20 YEARS OF MAJOR POSSESSION. WHERE WILL DEBT SUISSE SPIRAL HEREAFTER INJECTION OF RESOURCES? BLOOMBERG HAS SPOKEN TO CURRENT AND PREVIOUS CREDIT RATING SUISSE
EXECS ON THE PAST 3 YEARS.
>> > > IT IS AS WELL PREMATURE TO MAKE
A PREDICTION PAST 2021. >> > > IT IS CLEAR 2022 WILL CERTAINLY BE AT
LOWER LEVELS THAN IN 2015. >> > > WE CAME TO THE CONCLUSION
THAT THE MANAGEMENT, WE HAS A FIRM WAS UNDER FIRE AND ALSO HE
AS A SEES UNDER ATTACK. >> > > IT WILL CERTAINLY BECOME PROFITABLE
DEFINITELY FROM 2024 ONWARDS. >> > > WITH THE HISTORICALLY LOW
SHARE RATE, THIS IS A GREAT MONITORING GROUP, A PLAN THAT IS
A LOSS REGRETTABLY THIS YEAR. EXPENSES INCLUDE An IMPROVEMENT COMING IN 2023 BEFORE WE SEE A.
LOT GREAT DEAL BENEFITS. FRANCINE: IN A MOMENT, OUR SPECIALIST PANEL,.
FIRST, OLIVER SCOUNDREL IS IN ZURICH. WHAT CHOICES DOES THIS.
SCENARIO LEAVE GOING AHEAD? OLIVER:.
A BANK IN DIFFICULTY INTO A FINANCIAL INSTITUTION IN SITUATION TODAY, AS IN BE.
TRYING TO STEM THE FLOW AND RETURN SECURITY AND ALSO CALM TO.
THE MARKET.THE INQUIRY IS FOR HOW LONG THAT. WILL CERTAINLY LAST.
AT THE END OF THE DAY, THE MARKETPLACE WILL CERTAINLY BE THE.
TOTALITARIAN IN THIS, WHAT HAS TRIGGERED THIS ENTIRE CRISIS,.
AND ANALYST AROUND ARE SKEPTICAL THAT CREDIT HISTORY SUISSE.
CONTAINER KEEP GOING AS A BANK AS IT IS FORMED TODAY. CREDIT HISTORY SUISSE IS MOVING IN THE.
DISTANCE, UBS AND ALSO JP MORGAN” S A LOT OF MOST LIKELY RESULT IS A.
REQUISITION, ONCE YOU START LOOKING AT WHAT THAT LOOKS.
LIKE, SEVERAL OF THE REASONING BREAKS DOWN. UBS IS TRYING TO PUSH INTO THE UNITED STATE AND CREDIT SUISSE DOES NOT.
DEAL THEM A WHOLE LOT THERE. THEY DO NOT NECESSARILY HAVE.
THE SAME RISK APPETITE AS WELL AS UBS MAY NOT WANT THE SAME TYPE OF.
CLIENTS THAT CREDIT HISTORY SUISSE HAS. ALSO ANTITRUST AND SWISS.
FEDERAL GOVERNMENT. THE LAST QUESTION IS HOW MUCH.
UBS ALREADY GAINED FROM THE FALLOUT OF THIS WEEK. JUST HOW MUCH OF CLIENT FLOW AND MOVEMENT WILL THERE BE? THAT IS A QUESTION WE WILL CERTAINLY GET AN RESPONSE TO THE NEXT FEW WEEKS. FRANCINE: TO OUR PROFESSIONAL PANEL, WE HAVE.
OUR GLOBAL GROUP THROUGHOUT BLOOMBERG THAT HAS BEEN RETAINING.
AN EYE ON THE BREAKING INFORMATION CREDIT SCORE SUISSE AS WELL AS THE OTHER.
EUROPEAN BANKING SYSTEMS.JOINING United States NOW IS BLOOMBERG ‘ S MARION HALTER MEYER,. BLOOMBERG ‘ S INTERNATIONAL BANKING FINANCIAL EXPERT, AND PAUL DAVIES. WHEN YOU LOOK AT THE CHIEF EXEC AND THE TEAM. NOW, IS THE ONLY METHOD THEY CANISTER DO STICK TO WHAT THEY HAVE. STATED WITH THE STRATEGY AS WELL AS
HOPE THAT CUSTOMERS AND ALSO DOWN PAYMENTS STICK. AROUND? > > THERE IS A GREAT DEAL OF HOPE. THE SIGNS WE ARE OBTAINING THE PUBLIC MESSAGES WE ARE GETTING. FROM THE EXEC GROUP IS WE HAVE
OUR STRATEGY, WE ARE STICKING. TO IT, AND ALSO SINCE WE HAVE DEALT WITH LIQUIDITY CONCERNS. AND ALSO MARKET PANIC A MINIMUM OF IN THEIR VIEW, THIS PROVIDES A. LITTLE BREATHING SPACE TO CONTINUE THEIR PLANS AND. SPEED UP THEIR PLANS WHERE IT IS POSSIBLE.
THAT BEING SAID, YOU HAD A COUPLE OF DAYS AGO WHERE. FRANCINE: HOW INVOLVED AT THIS FACTOR DOES. THEY CONTAINER NOT COMPEL ANYONE TO.
SEPARATE, BUT IS THIS ULTIMATELY THE ONLY THING THE
. FINANCIAL INSTITUTION CAN DO? > > THEY CERTAINLY CAN NOT REQUIRE.
UBS TO GET ALL >> OF CREDIT SCORE SUISSE.I CANISTER INFORM YOU WHAT WE KNOW,. AS WELL AS THAT IS NOT
MUCH. ALL CHOICES ARE BEING.
TAKEN INTO CONSIDERATION BY THE GOVERNMENT, I.E.
THE SWISS NATIONAL FINANCIAL INSTITUTION AND. WE UNDERSTAND BOTH FINANCIAL INSTITUTIONS ARE.
VERSUS A BRAND-NEW WOODLAND OF PROCEDURES AND THAT IS THE STATUS.
QUO, SO WE WILL FIND OUT MORE FROM THE WEEKEND BREAK. THE LIQUIDITY LINE WITH TIME, AND THE MARKETPLACES LIKEWISE KNOWS IT.
IS DIFFICULT TO BET AGAINST THE SWISS NATIONAL BANK.FRANCINE:.
IF THE RETURN WENT BACK TO TOP, INDIVIDUALS WILL CERTAINLY NOT.
WANT TO TAKE THEM ON. CONGRATULATIONS ON EVERY ONE OF YOUR.
COLUMNS QUOTE AT THIS MOMENT YOU CLAIM IT IS BELIEF AND NOT.
FUNDAMENTALS ON CREDIT HISTORY SUISSE. HOW DO YOU SEE THIS PLAYING OUT? WHAT CHOICES DO THEY HAVE? >> > > THE ACUTE PHASE HAS ACTUALLY PASSED.
IN THE SENSE OF A GENUINE REALLY FEELING OF IMMINENT DILEMMA BECAUSE OF THE.
LIQUIDITY THAT HAS BEEN INCLUDED, AS WELL AS WHERE WE NOT– AND INS WHICH.
WE ARE CURRENTLY IS HOW THEY RESTRUCTURE THIS FINANCIAL INSTITUTION, WHAT IT.
APPEARS LIKE GOING AHEAD, AND GETTING FINANCIERS IN THE STOCK.
MARKET AND THE DEBT MARKETS TO UNDERSTAND THE TALE AND BE.
ABLE TO PRICE IT AS WELL AS RELOCATE PROPERLY SO THEY CAN MAKE A.
PROPER DECISION ABOUT WHERE AND WHETHER TO PURCHASE THE SHARES AND ALSO.
THE BONDS, WHICH IS REALLY CRUCIAL FOR MAINTAINING THE.
COMPANIES AND PLACING A FLOOR UNDER THE STOCK AND BOND PRICES. FRANCINE: MARIAN, ANY UNDERSTANDING INTO WHAT.
HAPPENS OVER THE WEEKEND BREAK? I MAKE SURE THERE WILL CERTAINLY BE OPEN.
CHANNEL COMMUNICATIONS BETWEEN REGULATORS TO POLICYMAKERS.
THE TIMELINE, IS IT A REALLY SHORT ONE IN TIMES OF TRYING TO.
SUPPORT FINANCIAL EVEN MORE, OR COULD TAKE MONTHS? FRANCINE:.
CENTER OF THE BANK AND ALSO THE RESTRUCTURE. AND AT THE FINANCIAL INSTITUTION, IT IS FRUSTRATING. FRANCINE: AS WELL AS IT IS DIFFICULT.
THEY CONTAINER ONLY ADHERE TO THE. METHOD TO TRY TO MAINTAIN TEAM AND ALSO CUSTOMERS. PAUL, IF YOU ARE A DEPOSITOR AND ALSO YOU HAVE SO LOTS OPTIONS,.
EVEN IF YOU ARE NOT ANXIOUS CONCERNING LIQUIDITY AND ALSO THERE IS. NOT A BASICS TROUBLE, WHY WOULD THEY STICK TO THE BANK? PAUL: THAT IS A GOOD QUESTION.
SEVERAL OF THE DEPOSITS and assets. INDIVIDUALS HAVE WITH THE FINANCIAL INSTITUTION, YOU TIN NOT TAKE OUT STRAIGHTAWAY. YOU WILL CERTAINLY HAVE COLLATERAL FOR OTHER TRADES YOU ARE DOING AS A. RICHES CUSTOMER AND SO FORTH, SO THERE IS THIS NATURAL BREAK ON. THIS, AND ALSO AMONG THE IMPORTANT THINGS THEY SAID IN REGARDS TO
THEIR. HELMET AS WELL AS HOW ASSETS WERE MOVING CURRENTLY IS THE CIRCULATIONS HAVE.
MAINTAINED A LOT AS WELL AS THEY ARE PROBABLY STILL SEEING
SOME. DOWN PAYMENTS THAT ARE MATURING, AND THE CASH NOT COMING BACK. IT IS A COMPLICATED DECISION TO TAKE RIGHT NOW IF YOU
ARE A. CLIENT.FRANCINE: AS WELL AS IF YOU ARE A REGULATOR,. EVEN IF YOU ARE CHECKING OUT NOT A GREAT DEAL OF
OPTIONS
ARE NOT ATTEMPTING. TO PUSH BOTH BIG BANKS TO
PERTAIN TO PLAY, THIS HAS HUGE. SYSTEMIC PROBLEMS. AS THE REGULATOR EVEN WANT THE. EXTREMELY SWISS BANK? JAN-HENRIK:. IF WE LOOK BACK AT THE REGULATION SINCE THE FINANCIAL.
CRISIS, IT WAS ALL CONCERNING WE DO NOT NEED BANKS WITH TOO BIG OF. WANTS TO GROW THEIR
BANKS AND AS WELL AS THINK ABOUT THE CULTURAL.
ISSUES HERE.CREDIT SUISSE AS WELL AS UBS HAVE BEEN. ARCHRIVALS AND ALSO THEY DO NOT WANT TO COMBINE. THAT IS SOMETHING YOU NEED TO CONSIDER IN THIS CONTEXT AS. WELL. FRANCINE: YOU TOUCH THE CREDIBILITY OF THE.
SWISS BANKING SYSTEM. FOR LOTS OF YEARS, IT WAS HELD IN.
IT DOESN ‘ T PROCEDURES THROUGHOUT THE FINANCIAL SECTOR ARE HAVING AN.
RESULT. THEY ARE LIKEWISE NEEDING TO EXPLAIN.
THE CIRCUMSTANCE IN SWITZERLAND TO THEIR CLIENTS AS WELL AS IT IS HAVING.
SOME QUESTIONS AROUND SWIFT– SWISS BANKING AND IT DOES NOT.
LOOK WONDERFUL. THIS WAS REGULATORY AUTHORITY IS TRYING TO.
REVEAL OF COMPEL AND CLAIMING WE KNOW HOW TO DEAL WITH OUR BANKS,.
THEY WERE TALKING WITH DEBT SUISSE, UBS, BUT IT DOES REASON.
A LITTLE BIT OF A QUESTION OF HOW STABLE IS SWISS BANKING IN THE.
FUTURE GOING FORWARD? THEY ARE AN CRUCIAL BANKING.
NATION AND ALSO THEY LIKE TO HAVE THEIR TWO SWISS NATIONAL.
CHAMPS. FRANCINE: AS WELL AS AT THE SAME TIME IT ELEVATES.
CONCERNS ABOUT DEBT SUISSE FIRST BOSTON. PAUL, WHAT DID YOU LEARN TODAYS IN REQUISITES OF THE FINANCIAL.
SYSTEM? THIS WAS CONCERN OUT THERE.WE KNOW CREDIT SCORES
SUISSE HAS HAD.
SUBSTANTIAL ISSUES, BUT ARE YOU STRESSED IT COULD HAPPEN.
IN OTHER PLACES? >> > > DO YOU INDICATES AS WELL AS OTHER.
EUROPEAN COUNTRIES? FRANCINE: IN ANOTHER PERSON BANK. PAUL:.
I GUESS WE ARE LIVING IN THESE TENSE TIMES. IT IS PROBABLY MORE IN THE UNITED STATE THAN EUROPE, BUT WE HAVE HAD AN.
AWFUL GREAT DEAL OF QUANTITATIVE FIRM UNDERWAY AND CASH.
IS LEAVING THE SYSTEM, AND ALSO WHAT WE ARE SEEING IN THE U.S. IS A TROUBLE NOT NECESSARILY OF NOT ENOUGH MONEY, BUT NOT.
SUFFICIENT MONEY BEING IN THE RIGHT PLACES. IT IS A DISTRIBUTION PROBLEM AND MAYBE YOU COULD BEGIN SEEING.
SOME OF THAT IN EUROPE SOMEWHERE ELSE, BUT I NOT THINK–.
IT DOES NOT SEEM TO BE ON THE CARDS. IT IS A LOT OF LIQUIDITY AROUND AND WE ARE NOT SEEING.
ANYTHING LIKE THE SAME KIND OF ISSUES OF DEPOSITS WANDERING.
FROM SMALLER BANKS TO THE LARGER BANKS.FRANCINE: I QUESTION IF
IT DOES MEAN THAT. LARGE CAPITALISTS AND SHAREHOLDERS WILL TALK A. LITTLE LESS GIVEN WHAT TOOK PLACE WITH SAUDI ROYAL BANK TODAY. THANK YOU TO OUR WONDERFUL BLOOMBERG TEAM PANEL. THEY ARE INDIVIDUAL THAT HAVE BEEN SPLITTING THE A LOT OF NEWS ON. THE TALE. NUMBERED ‘ S MARION HALFTERMEYER,. JAN-HENRIK FOERSTER, AND PIERRE CHARTRES
— PAUL DAVIES. UP NEXT, WE WILL TALK WITH THE > > THEY SAY THAT ALL PRESS IS. POSITIVE. THAT IS NOT THE >> CASE FOR CREDIT HISTORY.
SUISSE, WHICH HAS HAD EVEN MORE THAN ITS SHARE OF BAD HEADLINES. IN MARCH 2019, IT EMERGED THAT CREDIT RATING SUISSE HAD ACTUALLY WORKED WITH PRIVATE. PRIVATE INVESTIGATORS REGARDLESS OF ON AN WORKER AT SUSPECTED TAKING. ITS CLIENTS.– INVESTIGATORS TO SPY ON A. FORMER WORKER AT BELIEVED TAKING ITS CUSTOMERS.
SWISS REGULATORY AUTHORITY FINMA STATED CREDIT SUISSE HAD MADE PARTLY. WHEN IT MARKETED $10, incorrect AND ALSO EXCESSIVELY POSITIVE STATEMENTS.
BILLION OF FUNDS TO CLIENTS FOR SAFE INVESTMENTS.
> > I HAVE REALLY BEEN. POSITIVE THAT WE WILL COME OUT >> STRONGER.
> > RIGHT AFTER CAME ARCHEGOS. RESOURCES MANAGEMENT.ITS COLLAPSE BROUGHT CREDIT SCORE. SUISSE$ 5 BILLION OF LOSSES AS WELL AS SAW EXECS FIRED
. IT ADDITIONALLY LOCATED ITSELF THE FIRST SWISS FINANCIAL INSTITUTION TO OBTAIN A. CRIMINAL SENTENCE CONNECTED TO A COCAINE SMUGGLER. EFFORTS TO MAKE CERTAIN INVESTORS GONE TO PROBLEMS. > > WHAT WE SAW HIS. 2 OR 3 WEEKS IN OCTOBER FLATTENING OUT, THEY HAVE. QUIT AS WELL AS ARE PROGRESSIVELY COMING BACK. > > THEN SAW FINLAND OPEN. ANOTHER PERSON INVESTIGATION WHEN THE FINANCIAL INSTITUTION REPORTED THOSE DISCHARGES. >> HAD CONTINUED.
AFTER THE COLLAPSE OF SILICON. VALLEY BANK, INVESTORS ARE LOOKING AT OTHERS FOR INDICATORS OF. WEAK POINT. WITH CREDIT SCORES SUISSE, THEY ARE. NOT. SUCHING AS WHAT THEY SEE. FRANCINE:.
An APPEARANCE AT THE ISSUES CREDIT SUISSE HAS FACE IN CURRENT. YEARS.
THE CRISIS AT CREDIT REPORT SUISSE HAS. RAISED QUESTIONS CONCERNING THE STATE OF THE EUROPEAN BANKING.
INDUSTRY. SIGNING UP WITH US NOW IS NATWEST. CHAIRMAN, SIR HOWARD DAVIES.
THIS IS NOW AFFECTING SWISS. BANKING. ARE YOU CONFIDENT THERE IS NO. SYSTEMIC THREAT, THAT REGARDLESS OF WHAT TAKES PLACE THE FINANCIAL
. SYSTEM IS STRONG SUFFICIENT TO WITHHOLD IT? HOWARD:.
LOOK AT THE DIFFERENCES BETWEEN WHAT HAS ACTUALLY
HAPPENED IN SOME U.S. BANKS AND AS WELL AS IS TYPICALLY THE CASE SITUATION EUROPE, YOU SEE SOME. AND A WHOLE LOT OF MONEY SWISHING AROUND THE SYSTEM
, AND THEN. DEPOSITS BEGAN TO CIRCULATION OUT OF THE FINANCIAL SYSTEM INTO MONEY.
IN EUROPE, WE HAVE HAD LOW. INDIVIDUALS HAVE PUT THEIR MONEY IN. DISCHARGES LIKE WE HAD IN THE U.S. EUROPEAN BANKS ARE SITTING ON A. WHOLE LOT OF CASH MONEY AS WELL AS NOT SITTING ON POSSIBILITY LOSSES OF HOLDINGS OF.
VARIOUS IN EUROPE FROM THE UNITED STATES.
FRANCINE: HOW DO YOU DESCRIBE THE CREDIT SCORE. SUISSE DILEMMAS AND ALSO THE FACT IT HAS IMPACTED ALL EUROPEAN. BANKING SUPPLIES? HOWARD: I DO NOT INTEND TO DISCUSS THE. SPECIFICS OF CREDIT SCORES SUISSE.THERE IS HONOR AMONG BANKERS AS. WELL AS THIEVES.
CREDIT SCORES SUISSE HAS HAD.
IDIOSYNCRATIC SEARCHES AS WELL AS I DO NOT THINK INDIVIDUALS HAVE A. VIEW RITA CROPS FROM THAT PARTICULAR FINANCIAL INSTITUTION TO THE REMAINDER OF. THE FINANCIAL INDUSTRY. OVERALL, THE EUROPEAN BANKING.
MARKET STAYS HIGHLY UTILIZED AND ALSO IT REMAINS VERY. FLUID, AND WE HAVE NOT SEEN THE SORT OF DOWN PAYMENT TRIPS. WHICH IS CAUSING PROBLEMS IN THE U.S.
TYPICALLY WITHIN THE FINANCIAL SYSTEM SO THAT THE INTERNET. OVER HERE.THE BIG POINT IN THE U.S. IS THAT THEY EXCUSED SMALLER SIZED BANKS FROM SOME OF THE. OUR FINANCIAL INSTITUTION BALANCE SHEET OF A CONSIDERABLE INCREASE IN RATE OF INTEREST.
PROBABLY THAT WILL PROCEED, BUT I HONESTLY DO NOT SEE THAT THIS.
CREATES United States TO THINK WE REQUIREMENT A MAJOR TESTIMONIAL OF THE EUROPEAN.
BANKING REGULATORY SEEN WHERE BANKS ARE STILL STRONGLY.
EXPLOITED AND WE HAVE 14% IN Q1 AND WE HAVE PASSED THE.
CARDIOVASCULAR TEST WELL. I DO NOT SEE WHAT IT HAS TO DO WITH.
THIS CRISIS THAT WOULD TURN United States INTO A DIFFERENT REGULATORY.
REGIME.FRANCINE: GIVEN THE RATE IN WHICH. RESERVE BANKS TIPPED IN
WITH SUPPLYING CREDIT REPORT LINES OR. ENSURING DOWN PAYMENTS, IS THERE
AN ASSUMPTION THAT CENTRAL. BANKS WILL CONSTANTLY BE A BACKSTOP? HOWARD:. A FEW OF United States ARE A BIT WORRIED CONCERNING THE
COVERING DOWN PAYMENT. GUARANTEE. THIS HAS ACTUALLY CREATED NOW A SIGNIFICANT UNLEVEL PLAYING. FIELD BECAUSE IN THE U.S.
THEY HAD ACTUALLY 250,000 ASSURED. CANADA, IT IS $73,000 GUARANTEED, AND IN THE U.K., IT. IS TYPICALLY 200,000 POUNDS. OTHER IS A SIGNIFICANT SYMMETRY WHERE.
THE U.S. GUARANTEES ACROSS THE ENTIRE.
FINANCIAL SYSTEM, WHICH THE MAJORITY OF PEOPLE WOULD SAY WAS GENERALLY.
BECAUSE IT RELOCATES– IT REMOVES MARKET SELF-CONTROL, a BAD MESSAGE.
FOR BIG DEPOSITORS. I AM NOT PLEASED REGARDING THAT AS.
A BASIC PRINCIPLE, AS WELL AS I WISH WE DO NOT HAVE TO GO THAT WAY.
IN EUROPE. FRANCINE: DO YOU THINK WE WILL CERTAINLY HAVE TO GO.
IN THIS WAY IN THE U.K.? AS FOR THE MORAL THREAT, WHAT.
IS THE LONGER-TERM EFFECT OF A FEASIBLE MORAL DANGER? HOWARD:.
I DO NOT SEE THAT IN THE U.K.
IT IS A PANICKY RESPONSE FOR.
WHICH I DO NOT SEE A REASON NOW. AS I HAVE SAID, WE HAVE NOT SEEN LARGE-SCALE DEPOSIT.
OUTFLOWS FROM THE FINANCIAL SYSTEM SINCE INDIVIDUALS HAVE HAD.
CONFIDENCE IN THE LIQUIDITY ROUTINES AND ALSO WE EXPOSE OUR.
LIQUIDITY RATES FREQUENTLY, AS WELL AS IN THE FUNDING ROUTINE, AND IN.
THE STRESS TESTING ROUTINE, AND ALSO ALSO ULTIMATELY IN THE RECOVERY.
IF DETAILS OBTAIN TRULY POOR, and RESOLUTION ROUTINE. SO I DO NOT QUITE SEE WHY WE WOULD DEMAND TO HELP COLLECTION AT THE.
MOMENT.– CHANGE THAT AT THE MINUTE. THE CIRCUMSTANCE MAY OVERWHELM YOU AND SEVERAL OF THE PRINCIPLES.
YOU HAVE MY REQUIREMENT TO BE TEMPORARY DELAYED, BUT AT THE.
MINUTE I DO NOT THINK SO. FRANCINE:.
SIR HOWARD, I RECOGNIZE YOU STRESSED REGARDING SHADOW BANKING WHEN.
RATES OF INTEREST GO FROM 1% TO 5%. IS THAT STILL YOUR KEY PROBLEM.
AND EXISTS ANYTHING CENTRAL BANKS CANISTER DO, SLOWING INTEREST.
PRICE HIKES? HOWARD: I AM A LITTLE BIT NERVOUS CONCERNING THE.
CHANGE IN RATES OF INTEREST POLICY BECAUSE NEVERTHELESS, CENTRAL.
FINANCIAL INSTITUTIONS ARE SUPPOSED TO PRIMARILY DELIVER RATES OF INTEREST, WHICH.
IS WHAT THEY DO FOR THEIR INFLATION TARGET. AS SOON AS YOU REACH THE POSITION WHERE THE RESERVE BANK SAYS.
THAT WE STRESSED OVER A SMALL BANK IN THE GOLDEN STATE, THAT DOES.
NOT SEND An EXCELLENT MESSAGE.THAT IS LIKELY
TO BRING EVEN MORE.
UNCERTAINTY OVER ALL. I AM NOT EAGER ON THE.
IMPLICATIONS. IT SEEMED TO OVERTURN MONETARY.
PLAN PRINCIPLES. I DO NOT THINK THAT IS A GREAT.
MEANS TO GO. FRANCINE: THANK YOU SO MUCH FOR YOUR TIME.
TODAY. SIR HOWARD DAVIES, THE CHAIRMAN.
OF NATWEST FINANCIAL TEAM. EVENTS OF THE PAST WEEK HAVE.
GIVEN INCREASE TO LONGER-LASTING QUESTIONS ABOUT THE FUTURE OF.
THE FINANCIAL SECTOR ON BOTH SIDES OF THE ATLANTIC.FOR MORE, LET ‘
S ALSO GENERATE.’BLOOMBERG ‘ S FINANCING HANDLING EDITOR. YOUR TEAM HAS BEEN WORKING RELENTLESSLY ON SCOOPS, TRYING. TO GET FIRST OPINIONS OUT.
NEXT WEEK AND SOME BIG QUESTIONS THAT INVESTORS SHOULD. > > YOU CANISTER APPROACH THIS FROM.
HOWARD DAVIES TALKED THERE CONCERNING YOU MIGHT SEE THE. TO EVEN MORE FINANCIAL INSTITUTIONS AND SMALLER BANKS.THE ASSUMPTION FOR A LONG TIME. MUCH OF AN EFFECT, BUT WE HAVE SEEN IN THE U.S. WITH SILICON VALLEY BANK AND RIGHT HERE IN EUROPE WITH THE.
MARKET, SO YOU MIGHT SEE MORE POLICY OF THOSE SMALLER.
FIRMS. FRANCINE: AND CREDIT HISTORY SUISSE ‘ S PROBLEM WAS
. THAT IT WAS SO EMBEDDED.
THIS STARTED ON THURSDAY. MORNING AFTER WE SPOKE TO THE SAUDI NATIONAL BANK CHAIRMAN,. AND ALSO THIS IS WHAT PETE TOLD YOUSEF GAMAL EL-DIN ABOUT. RAISING FUNDING. > > NEVER.
FOR LOTS OF REASONS OUTSIDE THE SIMPLEST REGION– REASON WHICH. IS REGULATORY AS WELL AS STATUTORY.
WE ARE 9.8% OF THE FINANCIAL INSTITUTION. IF WE GO OVER 10 %, ALL NEW POLICIES KICK IN WHETHER IT BE THE. EUROPEAN REGULATOR OR THE SWISS REGULATOR, AND ALSO WE ARE NOT. INCLINED TO ENTER A BRAND-NEW REGULATORY PROGRAM.
FRANCINE:. THIS WAS ACTUALLY WEDNESDAY, AND ALSO HE SPOKE AT ANOTHER CONFERENCE. ON THURSDAY, SAYING THAT THE PANIC WAS UNWARRANTED. HOW DID YOU CHECK OUT THIS? WAS THIS PANIC AS WELL AS FEAR THAT. BROUGHT ABOUT THIS? OR WAS IT THE SHAREHOLDER.
THERE IS A GREAT DEAL OF UNCERTAINTY.I DO NOT KNOW THAT THAT LOTS OF. PEOPLE EXPECTED THE SAUDI NATIONAL BANK TO TAKE A 25 %.
STAKE. IT REMOVED ONE POSSIBILITY OF A. QUICK CAPITAL RAISE,
BUT IT DEMONSTRATED HOW MUCH WORRY WAS OUT.
BECAUSE THIS IS SOMETHING THEY HAD CLAIMED WHEN THEY TOOK, THERE.
THE STAKE, WAS THAT WE NEED TO MAINTAIN THIS LISTED BELOW 10 %. I THINK IT WAS CREDIT REPORT SUISSE. FACED THIS IN OCTOBER TOO. THERE WAS PROBLEM AS WELL AS IT. INTENSIFIED PROMPTLY
. FRANCINE: THANK YOU. MICHAEL MOORE.
WE CONTINUE TO BRING YOU ALL THE GROWTHS OVER THE WEEKS. SYSTEM.
PEOPLE HAVE WITH THE BANK, YOU CAN NOT TAKE OUT STRAIGHTAWAY. FRANCINE: IN ANOTHER FINANCIAL INSTITUTION. LOOK AT THE DIFFERENCES BETWEEN WHAT HAS ACTUALLY
HAPPENED TAKEN PLACE SOME U.S. UNITED STATE AND WHAT IS TYPICALLY THE CASE INSTANCE EUROPE, YOU SEE SOME. MAIN FINANCIAL INSTITUTIONS TIPPED IN
WITH OFFERING PROVIDING CREDIT REPORT OR. MUCH OF AN EFFECT, BUT WE HAVE SEEN IN THE UNITED STATE WITH SILICON VALLEY FINANCIAL INSTITUTION AS WELL AS HERE IN EUROPE WITH THE.