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Investors’ fears cease as banks stabilize, shares in UK & U.S. rise

Date: March 22, 2023 Pooja Sharma Pooja Sharma
Investors’ fears cease as banks stabilize, shares in UK & U.S. rise 
The instability in the global financial markets has seemed to mellow down following UBS’ purchase of Credit Suisse in a rescue deal. This deal was initiated by UBS as a hopeful attempt to lift and maintain shares in Europe and the U.S.



The purchase has shown positive effects like index numbers rising, despite worries regarding a similar situation for First Republic Bank. Shares in the San Francisco-based firm decreased by 40% due to a lack of confidence in the bank’s future following funds injected by the 11 biggest banks in America.



A spokesperson for the UK Prime Minister, Rishi Sunak, stated that the banks in the U.S. are safe and well-capitalized following the Credit Suisse rescue deal. Several central banks in the U.S. also came together to announce that they would improve the flow of dollars in the global financial system.



The former chief executive of UBS, Mark Yallop commented that the deal with Credit Suisse is expected to reassure investors of their investment.



UBS chairman Colm Kelleher has stated that the firm may wind down the banking operations of Credit Suisse. However, he has not given any confirmation on the availability of jobs. Credit Suisse has a staff of 74,000 employees around the world out of which 5,000 are in the UK. For the record, Credit Suisse is a 167-year-old institution and is of great importance to the banking system.



The rise in interest rates has presented challenges for various banks around the world and led to the collapse of two medium-sized banks in the U.S. recently. Despite the tension, however, experts have not projected a repeat of the dire condition in 2008, at which time banks had stopped lending to each other, resulting in the onset of a global recession.



Source Credit: https://www.bbc.com/news/business-65012275

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Pooja Sharma

Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.