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Banking Crisis Contagion Erupts in Europe Where Fed Can Do Little 3/15/23

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Going to throw something out without having thought it through.

The Chinese-negotiated rapprochement between Iran & Saudi Arabia signed in the past week surprised me. Maybe it's an empty note, maybe it's a watershed that diplomatically signals China's ascension/America's decline/Iran's Reemergence/Saudi's Swapping sponsors.

On the back of that, headlines have it that the Saudi pocketbook that had backed Credit Suisse isn't going to provide such backing anymore. Are these development related?  That is, are we going to see a shift in petrodollar clout - including Iran's - out of Western banks & assets in favor of an Asian future?

I dunno.  But the timing is exquisite.

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Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank (SNB) up to CHF 50 billion under a Covered Loan Facility as well as a short-term liquidity facility, which are fully collateralized by high quality assets," Credit Suisse said in a statement.  It pointed to its end-2022 Common Equity Tier 1 capital ratio of 14.1% and average liquidity coverage ratio (LCR) of 144%. The latter had improved to about 150% by March 14, it said.

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3 minutes ago, SiP said:

Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank (SNB) up to CHF 50 billion under a Covered Loan Facility as well as a short-term liquidity facility, which are fully collateralized by high quality assets," Credit Suisse said in a statement.  It pointed to its end-2022 Common Equity Tier 1 capital ratio of 14.1% and average liquidity coverage ratio (LCR) of 144%. The latter had improved to about 150% by March 14, it said.

“Our Tier-1 stuff is so… Swiss… that we are going to take $54 billion in loans just as a public flex to prove how liquidy & above average some ratios are… or something.”

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