Yellen, Powell welcome Credit Suisse-UBS deal
The capital and liquidity positions of the US banking system are strong, and the US financial system is resilient, say Yellen and Powell
US Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell said they welcomed the Credit Suisse deal announced Sunday and emphasized that the capital and liquidity of US banks is strong.
“We welcome the announcements by the Swiss authorities today to support financial stability,” the officials said in a joint statement. “The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. We have been in close contact with our international counterparts to support their implementation.”
UBS Group AG agreed to buy Credit Suisse Group AG in a government-brokered deal aimed at containing a crisis of confidence that threatened to spread across global financial markets.
While the news of UBS’s takeover brings some relief, there’s still considerable anxiety on Wall Street heading into this week. The turmoil at Credit Suisse and the collapse of three US regional lenders has fanned concern about the health of the banking industry and revived memories of the 2008 financial crisis.
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First Published:20 Mar 2023, 02:24 AM IST
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