London schools face crisis as pupil numbers plummet
T he full extent of the pupil exodus from London has been laid bare in a new analysis which shows thousands left the capital's schools last year.The number of children moving out of London entirely rocketed in the past year, while the total leaving the state system for private schools or home education in the capital is also higher than pre-pandemic levels.
London social entrepreneur scoops award for transforming hardship payments for those in need
A n east London social entrepreneur whose startup helps get hardship payments to people in need quickly has won a national award.Gareth Evans' startup Cash Perks allows charities, social landlords and councils to send funds by SMS to people in poverty allowing them to instantly withdraw cash from ATMs.
Thousands of City jobs at risk in Credit Suisse crisis as UBS takes over embattled bank
Mark Yallop, former chief executive of UBS in the UK, also raised the prospect that there is more to emerge of the risks surrounding Credit Suisse than currently publicly known.However, he believes the sale of the bank to its rival and the intervention by financial institutions should stabilise the banking sector.
Two suburban Catholic schools to close months after scholarship tax credit program expires, Archdiocese says
Two Catholic grade schools, St. Frances of Rome School and St. Odilo School, will close this summer due to the expiration of the Invest in Kids tax credit scholarship program.
More than half of the students at the closing schools relied on the tax credit scholarships to attend, putting the schools in a financial crisis. [ more ]
Two suburban Catholic schools to close months after scholarship tax credit program expires, Archdiocese says
Two Catholic grade schools, St. Frances of Rome School and St. Odilo School, will close this summer due to the expiration of the Invest in Kids tax credit scholarship program.
More than half of the students at the closing schools relied on the tax credit scholarships to attend, putting the schools in a financial crisis. [ more ]
What Record Office Vacancies Mean for New York City's Economy
The amount of office space available for lease in Manhattan climbed to a record high during the first four months of 2023, according to the real estate firm Colliers.The group said that the total square footage of office space in Manhattan available for lease roughly 94 million has set a record.The vacancy rate of 17.4 percent, however, matched the rate from February 2022, which was the highest since Colliers started tracking the New York City office market in 2000.
Could Thames Water be nationalised and where did its problems start?
Investors backed out of 500m funding for Thames Water, raising concerns of securing short-term funding.
Thames Water continues to face financial issues affecting its ability to deliver services effectively, with potential for temporary nationalisation. [ more ]
Money problems overtake mental health concerns among students survey
The cost-of-living crisis is having an even bigger impact on graduates' career plans than the pandemic, research suggests, with young people now more concerned about money problems than their mental health.For the last two years, early careers surveys by Prospects at education technology organisation Jisc have revealed that students and graduates ranked their mental health and motivation levels as their biggest worries.
Spain PM's shock election call brings unruly coalition to heel
Spanish Prime Minister Pedro Sanchez's snap general election call breaks apart the coalition he built with the far-left United We Can party, marking a line in the sand with a movement born from grassroots activism whose electoral fortunes have nosedived.On Monday, Sanchez brought forward a national election expected in December to July 23 after the conservative Popular Party, or PP, and far-right Vox movement dramatically increased their vote share in Sunday's local and regional elections.
The Guardian view on local government finance: a crisis that corrodes democracy | Editorial
Local councils in England have faced a 50% drop in spending power since 2010 due to funding shortfalls and lack of autonomy.
Rising costs and limited revenue options put English councils at risk of financial collapse, impacting services and the most vulnerable residents. [ more ]
The mother of all U-turns': after Labour's 28bn green policy climbdown, what's left?
Labour's top brass saw an opportunity for a general election victory after a financial crisis caused by Kwasi Kwarteng's mini-budget and Liz Truss's failed experiment.
Labour's green prosperity plan, including a promise of £28bn a year of green investment, was missing from shadow chancellor Rachel Reeves' speech at the 2022 conference. [ more ]
MP calls for Parliament probe of rate 'rigging' evidence
Parliament has been urged to investigate "damning evidence" that it may have been misled by the Bank of England over interest rate rigging.Senior Conservative backbencher David Davis said new evidence cast doubt on statements to Parliament by its former deputy governor.In a House of Commons debate he called for a renewed parliamentary inquiry into the scandal.
The centre left is on the up around the world. Here's what Keir Starmer can learn from it | Claire Ainsley
Those of us who desperately want to see the back of this dismal Conservative government should take heart from the recent local elections in England.We should also be encouraged by the successes of the centre left around the world, which has defeated the political right in elections in Australia, Germany, Spain, Portugal and the US, after a dramatic decline in support for social democratic parties after the 2008 financial crisis.
TikTok star Bobby Moudy dead at 46, father of 3 called 'most amazing dad'
Bobby Moudy, a popular content creator on TikTok, has died.The father of three was 46 years old.Moudy had more than 363,000 followers and 18.6 million likes on TikTok."Just here to embarrass my daughter," he wrote in his TikTok bio.According to an online obituary, Moudy died at home in Brandon, Miss., on April 28.
The Art Newspaper - International art news and events
Museums' social media booms thanks to anniversaries and blockbusters
In a year that has seen post-Covid digital fatigue paired with a tumultuous social media landscape, our museum social media survey is somewhat muted.For the fourth consecutive year, we have added up the total Instagram, Facebook, Twitter and TikTok followers for the 100 most-visited museums in our annual visitor survey.
He's about to graduate college and join SpaceX as an engineer. He's 14.
(Lisa Robinson / Santa Clara University)
Kairan Quazi will probably need someone to drive him to work at SpaceX.He's only 14.The teen is scheduled to graduate this month from the Santa Clara University School of Engineering before starting a job as a software engineer at the satellite communications and spacecraft manufacturer.
SEC's Approval of Bitcoin Markets May Set the Stage for Financial Disaster
The neoliberal financial system is dominated by megabanks and shadow financial institutions, leading to increased inequality and reliance on government bailouts.
The approval of bitcoin exchange-traded funds by the SEC could have significant impact on the global money system but also poses the risk of another financial crisis. [ more ]
Good Luck Getting Insurance When Your Country is On Fire
Last year, I attended a town hall meeting in Colorado's Boulder County for local residents displaced by the Marshall Fire.The blaze had swept through the community a few months prior destroying more than 1,000 buildings and causing more than $2 billion in damage.For the displaced residents, insurance dominated the conversation.
How Barca, Laporta missed the chance to sign Messi twice
Sid Lowe, Spain writerJun 13, 2023, 05:00 AM ET
Lionel Messi doesn't forget.By the sound of it, he hasn't entirely forgiven, either.On the evening of Aug. 4, 2021, he and his family flew from Ibiza to Barcelona, touching down at El Prat around 8 p.m. local time.Holiday over, the way he recalls it, his kids were excited about another year at school in Castelldefels and he was looking forward to another season at Camp Nou.
Grateful for E.U. Aid, Ukraine Now Waits for the United States
The European Union has approved a $54 billion assistance package for Ukraine to help alleviate its financial crisis.
Ukraine relies on foreign financial aid for about half of its national budget and on foreign military assistance for a majority of its ammunition and weaponry. [ more ]
Greece's ruling center-right party wins elections but still seek a majority
Greece's Prime Minister and leader of New Democracy Kyriakos Mitsotakis, center, addresses supporters at the headquarters of his party in Athens, Greece, Sunday, May 21, 2023.Thanassis Stavrakis/AP ATHENS, Greece It was the most tantalizing of victories.Despite inflicting the most crushing defeat in half a century on the opposition, Greece's center-right Prime Minister Kyriakos Mitsotakis is expected Monday to seek a second national election within weeks, as he lacks the majority in Parliament to govern alone.
At least 34 refugees missing after their boat sinks off Tunisia, raising the total number of missing people to 67 as the number of vessels heading towards Italy sharply increases.At least 34 refugees are missing after their boat sank off Tunisia, officials have said, the latest in a string of tragedies this month.
Five drown off Tunisia coast trying to reach Europe
Another 28 people were still missing after a boat headed for Europe capsized off the coast of Tunisia.At least five African people have died and another 28 are missing after a boat sank off Tunisia, as they tried to cross the Mediterranean Sea to Italy, a local rights group has said.Romadan Ben Omar, a member of the Tunisian Forum for Social and Economic Rights, said on Wednesday that the Tunisian coastguard had rescued five people who had been on board the boat that sank off the coast of the southern city of Sfax.
Two suburban Catholic schools to close months after scholarship tax credit program expires, Archdiocese says
Two Catholic grade schools, St. Frances of Rome School and St. Odilo School, will close this summer due to the expiration of the Invest in Kids tax credit scholarship program.
More than half of the students at the closing schools relied on the tax credit scholarships to attend, putting the schools in a financial crisis. [ more ]
Chopra addresses upcoming decision on CFPB constitutionality
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and allies in the U.S. Senate addressed the impending decision by the U.S. Supreme Court on the CFPB's constitutionality during the Senate Banking Committee hearing on Tuesday.Sen. Sherrod Brown (D-Ohio), the committee chairman, asked Chopra during the hearing what it would mean for the CFPB to lose its independent funding structure.
JPMorgan Chase to buy distressed First Republic Bank in deal brokered by U.S. regulator | CBC News
Regulators seized troubled First Republic Bank early Monday and sold all of its deposits and most of its assets to JPMorgan Chase Bank in a bid to head off further banking turmoil in the U.S. San Francisco-based First Republic is the third midsize bank to fail in two months.San Francisco-based First Republic is the third midsize bank to fail in two months.
What will housing credit look like in next recession?
With the banking crisis spurring more talk of a recession, the question now is: What would housing credit look like in a recession?Many people predicted that the U.S. housing market would crash during the pandemic.One of the main reasons for that fear was that housing credit was about to get tight, meaning fewer people could buy homes with mortgages.
Banking Giant UBS Is Acquiring Smaller Rival Credit Suisse
BERN, Switzerland Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain Berset announced on Sunday night.Swiss president Alain Berset, who did not specify a value of the deal, called the announcement one of great breadth for the stability of international finance.
UBS will take over Credit Suisse, Swiss president says | CBC News
Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain Berset announced on Sunday night.Berset, who did not specify a value of the deal, called the announcement "one of great breadth for the stability of international finance.
The Triple Whammy For Boston Condo Buyers Boston Condos For Sale Ford Realty
So, how bad is this for Boston condo buyers?If you go back 25 years, you can see the steady rise in prices over time despite the bust in the financial crisis.And that makes clear why millennials are feeling such pain, given the triple whammy of higher prices, higher down payments and higher interest rates.
Gardening Food justice activist Karen Washington urges aspiring gardeners to 'be fearless.'It's never too late to pick up gardening - or to turn it into a career.How did you transition from gardening as a hobby into a career in food justice activism?In the Bronx, N.Y., between skyscrapers and cement sidewalks, Karen Washington decided to try something new and started growing food.
Boston Condo Mortgage Rates: What's Next? Boston Condos For Sale Ford Realty
Boston condo mortgage rates: what's next?What indeed!There are more questions than answers right now.Some say the bank failures are evidence that the Fed's tough interest rate policies have "broken something," and they must now dial back their intensity.Others say the Fed knew some things would "break" and that they'll only dial back if lower inflation says they can.
UK borrowing costs soar above levels of Liz Truss premiership
UK government borrowing costs have risen above the levels hit during Liz Truss's disastrous premiership, after stronger than expected jobs and pay figures reinforced expectations that the Bank of England will raise interest rates next week.Andrew Bailey, the Bank's governor, said inflation was taking a lot longer than hoped to come down, telling the House of Lords economic affairs committee: As I'm afraid this morning's numbers illustrated, we've got a very tight labour market.
What mortgage lenders need to know about wholesale
HousingWire recently spoke with Desmond Smith, chief growth officer at United Wholesale Mortgage, about the role that wholesale lending plays in the mortgage ecosystem and common myths and misconceptions about becoming an independent mortgage broker.HousingWire: What role has wholesale lending historically played in the mortgage ecosystem?
Bank of England says inflation has turned corner' despite soaring food prices
The Bank of England governor has insisted that inflation has turned the corner, despite the UK being hit with the fastest annual growth in food prices since the 1970s amid the cost of living crisis.Andrew Bailey said annual inflation was on track to fall sharply in the face of a recent drop in wholesale energy prices, coupled with the prospect of last year's jump in gas and electricity bills for British households dropping out of the annual figure.
The UK government has sold 1.26bn of NatWest shares back to the bank, which it bailed out in a near 46bn deal in 2008.The sale will reduce the taxpayer's stake in the high street bank, formerly known as the Royal Bank of Scotland Group, from 41.4% to 38.6%.Over the past decade, shares in NatWest Group, which has a market value of about 25bn, have tended to trade at barely half the average price of the bailout.
Royal Mail boss to step down after bitter dispute with unions
The chief executive of Royal Mail is stepping down after only two years following an acrimonious tussle with unions.Simon Thompson, who took the top job in early 2021, will stay on until the end of October as the postal firm seeks its fourth boss in four years.Royal Mail's parent company, International Distributions Services, said it was in the advanced stages of appointing a new chief.
Bitcoin Holds Near $29K as Investors Weigh Rate Increases, Banking Contagion
Jocelyn Yang is a markets reporter at CoinDesk.She is a recent graduate of Emerson College's journalism program.Bitcoin ( BTC) spent much of Thursday quietly hovering a little below $29,000, roughly where it's stood for much of the past 10 days, as investors weighed U.S. and European central bank interest rate increases and the latest debacles in a mushrooming bank crisis.
World Bank Projects Weak Global Growth Amid Rising Interest Rates
The World Bank said on Tuesday that the global economy remained in a precarious state and warned of sluggish growth this year and next as rising interest rates slow consumer spending and business investment, and threaten the stability of the financial system.The bank's tepid forecasts in its latest Global Economic Prospects report highlight the predicament that global policymakers face as they try to corral stubborn inflation by raising interest rates while grappling with the aftermath of the pandemic and continuing supply chain disruptions stemming from the war in Ukraine.
So What Is the Debt Limit Anyway? Here's What to Know.
The wrangling over the nation's debt limit raises a lot of questions, including what it actually is and why the United States has one.Here's everything you need to know.The debt limit is a cap on the total amount of money that the United States is authorized to borrow to fund the government and meet its financial obligations.
The tenement on East Seventh Street where I live was built in 1893, when a financial crisis in the United States had started to corrode a fabled, materialistic and short-lived time known as the Gilded Age, chronicled most recently in the HBO series of the same name.The building's original owner, Sigmund B. Steinmann who once kidnapped a child violinist, among other crimes represented the era vividly enough to have his own story line on the show.
So What Is the Debt Limit Anyway? Here's What to Know.
President Biden and top congressional leaders are set to meet Tuesday to discuss raising the debt ceiling.Which raises a lot of questions, including what the debt limit actually is and why the United States has one.Here's everything you need to know about the debt limit.The debt limit is a cap on the total amount of money that the United States is authorized to borrow to fund the government and meet its financial obligations.
Why China is unlikely to rescue the world economy again DW 05/13/2023
As the rest of the world teeters on the brink of recession, the last thing Western policymakers want is for China, the biggest driver of global economic growth since the 2008 financial crisis, to have a lopsided recovery.But that is what is unfolding.After abandoning its thee-year zero-COVID policy in December, the world's second-largest economy isn't exactly firing on all cylinders.
Why China cannot bail out the world economy again DW 05/12/2023
As the rest of the world teeters on the brink of recession, the last thing Western policymakers want is for China, the biggest driver of global economic growth since the 2008 financial crisis, to have a lopsided recovery.But that is what is unfolding.After abandoning its 3-year zero-COVID policy in December, the world's second-largest economy isn't exactly firing on all cylinders.
Here's What The Debt Ceiling Deal Really Means For Your Student Loan Debt
On May 27, House Speaker Kevin McCarthy and President Joe Biden announced they had reached a deal to raise the country's debt ceiling before the looming deadline.At the time, Biden said reaching accord meant some compromise, which meant that while the agreement "protects my and congressional Democrats' key priorities and legislative accomplishments... not everyone gets what they want.
Who is Nate Paul, the donor at the center of the case?
Much of the alleged misconduct detailed in the articles of impeachment filed against Attorney General Ken Paxton centers on his relationship with a real estate investor, Nate Paul.Not long ago, Mr. Paul, who in 2018 donated $25,000 to Mr. Paxton's campaign, was heralded as one of the most successful young real estate entrepreneurs in Austin, Texas.
F.D.I.C. Proposes Broadening Bank Insurance for Businesses
WASHINGTON The Federal Deposit Insurance Corporation on Monday recommended that Congress consider expanding its regulatory powers to backstop certain deposits so that it could prevent bank runs.The proposal came the same day the F.D.I.C. orchestrated the seizure and sale of First Republic Bank to J.P. Morgan, and weeks after a run on Silicon Valley Bank helped sow its collapse.
UK Government sells 1.26bn of taxpayer stake in NatWest
The UK Government has sold 1.26 billion of its stake in Natwest back to the banking firm.It is the latest in a series of stake sales by UK Government Investments as the state seeks to whittle down its shareholding in the bank, following its near 46 billion bailout during the 2008 financial crisis.The latest sale will bring the Government's minority stake down to 38.69% from around 41%.
Manchester United bidder Jim Ratcliffe up to second on UK rich list
The Ineos founder, Sir Jim Ratcliffe, has moved up to be the second wealthiest person in Britain, with a near 30bn fortune, as the number of UK billionaires dropped last year for the first time in 14 years.Ratcliffe, who is battling to take control of Manchester United football club, is the highest climber in the annual Sunday Times rich list, up 27 places as his chemicals fortune climbed by 23.6bn compared with last year, with his net worth estimated at 29.6bn.
The best childcare in the world? Maybe so, but new parents in Iceland are holding out for better
In a bright, bunting-filled community hall in central Reykjavik, Eggert Arason bounces his 17-month-old son, Mosi, on his lap as they sing the Icelandic version of Row Your Boat, accompanied by an acoustic guitar.It's mid-morning on a Thursday, and Arason is not the only dad who is off work to attend the council-funded playgroup.
Joe Biden and Kevin McCarthy Expected to Resume Debt Limit Talks on Tuesday
Facing pressure to resolve the ongoing U.S. debt limit standoff, President Joe Biden said he expects to resume budget negotiations with congressional leadership on Tuesday, just one day before he leaves for the G7 summit in Japan.He declined to give details on where they stand in terms of a negotiated deal but said he believed an agreement could be reached with House Republicans to raise or suspend the debt cap before the U.S. runs out of cash, which the Treasury Department has said could happen as early as June 1.
Biden Says Debt Ceiling Talks Are Moving AlongBut We're Not There Yet'
JOINT BASE ANDREWS, MDPresident Joe Biden said that talks with Congress on raising the U.S. government's debt limit are moving along, but more will be known about their progress in the next few days.We've not reached the crunch point yet but there's real discussion about some changes we all could make, Biden told reporters Saturday before boarding Air Force One en route to Rehoboth Beach, Del.
Editorial: Again, US teeters at the fiscal cliff. Time to revive talk of a balanced budget amendment.
Broadsides to the global economy have myriad causes, not all within the control of governments.But when global economic pain is caused not by a devastating worldwide pandemic but by political pettiness and irresponsible governance, it's infuriating.Last week, Treasury Secretary Janet Yellen warned that America is poised to default on its $31.4 trillion debt by June 1.
Bank of England to raise rates to highest level since 2008 - live
The Bank of England are expected to raise interest to the highest level since 2008 The Bank of England is expected to raise interest rates to the highest level since 2008 as inflation continues to soar.Rates are expected to rise from 4.25 per cent to 4.5 per cent in the midday announcement, representing a 0.25 percentage point increase.
Martin Lewis issues warning ahead of latest interest rates announcement
Personal finance guru Martin Lewis has urged people in the UK to take steps to shore up their savings ahead of the Bank of England's looming interest rates announcement.In what would represent the 12th consecutive hike, the UK's central bank is expected to push its base interest rate up by a further 0.25 points to a 14-year high of 4.5 per cent.
Martin Lewis issues warning ahead of latest interest rates announcement
Personal finance guru Martin Lewis has urged people in the UK to take steps to shore up their savings ahead of the Bank of England's looming interest rates announcement.In what would represent the 12th consecutive hike, the UK's central bank is expected to push its base interest rate up by a further 0.25 points to a 14-year high of 4.5 per cent.
Civil service union attacks No 10 for not offering cost of living payment
A major union has criticised No 10 for not offering civil servants the lump sum cost of living payments that other public sector workers such as teachers and health staff have been promised.Prospect union's general secretary, Mike Clancy, said as members prepared to strike that the unions had been given every indication that the pay offer for civil servants would follow the same template as others in the public sector.
France's constitutional council rejects bid for referendum on pension reform
Ratings agencies are like pub bores.They state the obvious.Bank collapses arrive out of the blue but the ratings agency, Fitch, is troubled by the fact that France is 3,000 billion in debt.Didn't we know that already?Isn't that one of the reasons why President Emmanuel Macron wants the French to retire later and stop piling up deficits in their state pension system?
OPINION: Will French debt lead to a Greek-style crisis? Not yet
Ratings agencies are like pub bores.They state the obvious.Bank collapses arrive out of the blue but the ratings agency, Fitch, is troubled by the fact that France is 3,000 billion in debt.Didn't we know that already?Isn't that one of the reasons why President Emmanuel Macron wants the French to retire later and stop piling up deficits in their state pension system?
EU disease agency publishes COVID-19 insights DW 05/02/2023
The European Centre for Disease Prevention and Control (ECDC) on Tuesday published its conclusions drawn from the coronavirus pandemic.The EU health authority said it had identified four areas where lessons had been learned.These areas included investment in public health, preparation for the next health crisis, risk communication and community engagement and Collection and analysis of data and evidence.
Latam Insights Steve Hanke Advocates Dollarization in Argentina, Bitcoin City Plans Unclear in El Salvador, Sunacrip Implicated in Venezuela Layoffs Bitcoin News
Welcome to Latam Insights, a compendium of the most relevant crypto and economic development news from Latin America during the last week.In this issue, economist Steve Hanke calls to dollarize Argentina, Bitcoin City plans are still not formalized in El Salvador, and Venezuelan crypto watchdog Sunacrip is allegedly involved in mass layoffs.
NHS Workers to Resume Strike, Rejecting Tory Government Pay Offer as Inadequate
Rishi Sunak, the wealthiest PM in UK history, has repeatedly supported proposals to crack down on the strike.National Health Service (NHS) junior doctors take part in a march and rally in the centre of Birmingham, on the final day of the British Medical Association's 96-hour walkout in a dispute over pay, on April 14, 2023.Jacob King / PA Images via Getty Images A leading union that represents thousands of National Health Service workers in the U.K. announced Friday that its members voted to reject the right-wing Tory government's latest pay offer, setting the stage for large-scale strikes to resume next week.
The Consumer Financial Protection Bureau (CFPB) issued guidance this week for debt collectors seeking to foreclose on homes with mortgages past the statute of limitations, also known as "zombie mortgages."The guidance comes in the form of an advisory opinion pertaining to the Fair Debt Collection Practices Act (FDCPA) and implementation of Regulation F. The guidance notes that a covered debt collector "who brings or threatens to bring a state court foreclosure action to collect a time-barred mortgage debt may violate the [FDCPA] and its implementing regulation."
First Citizens Bank to acquire Silicon Valley Bank
First Citizens Bank & Trust Company will acquire failed Silicon Valley Bank (SVB), which unexpectedly failed earlier this month and sent shock waves across the financial sector.The North Carolina-based First Citizens announced on Monday an agreement with the Federal Deposit Insurance Corporation (FDIC) to acquire all of SVB's deposits and loans that were moved to an FDIC-created bridge bank after the collapse.
Brexit damage to economy as big as Covid, says OBR
The impact of Brexit on the UK economy is on the same magnitude as the Covid pandemic and energy price crisis, the chairman of the Office for Budget Responsibility (OBR) has said.In a grim assessment, Richard Hughes also warned that it would take five years before people's spending power recovers to pre-coronavirus levels.
Silicon Valley Bank's former parent company says U.S. regulator is cutting it off from cash | CBC News
SVB Financial Group said on Tuesday the U.S. Federal Deposit Insurance Corporation (FDIC) had taken "improper actions" to cut it off from cash held at its former subsidiary Silicon Valley Bank, which was seized by regulators to stem a national bank run.SVB Financial made the accusations in court filings ahead of its first bankruptcy hearing on Tuesday afternoon in Manhattan.
What are AT1 bonds and why are Credit Suisse's now worthless?
Investors in a riskier type of Credit Suisse's bonds had the value of their holdings slashed to zero Sunday after Swiss authorities brokered an emergency takeover of the bank by rival UBS.On Sunday, the Swiss National Bank (SNB) announced that UBS would buy Credit Suisse for 3 billion Swiss francs ($3.25 billion) or about 60% less than the bank was worth when markets closed on Friday.
Confused about the bank meltdown? Here's how to speak Wall Street
Wall Street can seem bewildering, given its sheer amount of jargon, banking terms, and acronyms.But headlines this week, from the collapse of Silicon Valley Bank to Credit Suisse's need for a lifeline to instability at First Republic, have made the business of finance a national concern.So when you hear the FDIC is taking over, a Treasury portfolio is sinking or a bank was backstopped and bailed out, what exactly does that mean?
Credit Suisse's Buyout Shows Banks Still Have a Banking Problem
Time to add Credit Suisse (CS) to the list of bank failures we've seen so far in 2023.Over the weekend UBS agreed to buy Credit Suisse for what equates to about $3.25 billion of UBS stock complete with the Swiss government helping absorb some of the coming writedowns of CS's loan book.UBS had to step in to save CS after last Wednesday's 50 billion Swiss franc liquidity injection from the Swiss National Bank proved insufficient to buoy the bank's operations once the Saudi National Bank (CS's largest shareholder) said it wouldn't provide any more assistance.