Financial Market Daily Updates – March 18, 2023

What happened in Financial Market on March 18, 2023?

  1. UBS seeking $6 billion in government guarantees for Credit Suisse: According to Reuters, UBS is said to be considering a merger with Credit Suisse, and is seeking $6 billion in government guarantees to help offset the risks of a potential acquisition. This comes as Credit Suisse faces ongoing pressure following its involvement in the Archegos Capital Management scandal.
  2. The latest banking failures exposing ‘growing frictions’ in the financial system: As per The National News, the recent failures of several small banks, including Greensill Capital and Archegos Capital Management, have exposed growing frictions in the financial system. The article notes that while these failures may not pose a systemic risk to the financial system, they do highlight the need for better risk management practices among banks.
  3. Russia-Ukraine latest news: Bloomberg reports that air alerts sounded after Russian drone strikes in Ukraine. This comes amid ongoing tensions between the two countries, with Russia accused of escalating the conflict by providing military support to separatist rebels in eastern Ukraine.
  4. First Republic shares falling despite an unprecedented Wall Street rescue deal: CNBC reports that First Republic Bank’s shares fell by more than 10% despite a rescue deal involving several Wall Street firms, including Goldman Sachs and Morgan Stanley. The deal is said to have been necessary to prevent a potential collapse of the bank, which has been hit hard by the recent failures of Greensill Capital and Archegos Capital Management.

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