The Steady Drip: Credit Suisse Unease Sparks World Stock Sell-Off (Connecting the Dots: Credit Suisse, JPMorgan Chase & Co., Citigroup. Bank of America Corp., FDIC & Soros Funding, All Networking)

Credit Suisse Unease Sparks World Stock Sell-Off (Connecting the Dots: Credit Suisse, JPMorgan Chase & Co., Citigroup. Bank of America Corp., FDIC & Soros Funding, All Networking)

Newsmax

Wednesday, 15 March 2023 12:26 PM EDT

https://www.newsmax.com/finance/streettalk/stock-selloff/2023/03/15/id/1112278/

U.S. stocks dropped Wednesday as turbulence at Credit Suisse revived fears of a banking crisis, eclipsing bets of a smaller interest rate hike in March following weak economic data.
Troubles at Credit Suisse have piled more pressure on the banking sector following the collapse of SVB Financial and peer Signature Bank, undoing relief from the emergency measures by U.S. authorities aimed at preventing a contagion.
U.S.-listed shares of Credit Suisse hit a record low, after its largest investor said it could not provide more financing to the bank, starting a rout in European lenders and bringing U.S. banks under pressure as well.

European stock markets fell sharply Wednesday, amid the banking sector fallout. The pan-European Stoxx 600 index closed 3% lower, with all sectors in the red. Banking stocks sank 7%, followed by the oil and gas sector, down 6.6%.

Credit Suisse ended at the bottom of the blue-chip index overseas after the bank’s biggest lender, Saudi National Bank, said it would not be able to offer it more financial help, citing regulatory reasons. Credit Suisse closed down 24% after falling as much as 30% earlier in the session.
"Anything negative from any highly visible institution, in this case Credit Suisse, is going to have ripple effects across the financial sector," said Michael James, managing director of equity trading at Wedbush Securities.
Meanwhile, data showed retail sales fell 0.4% last month from a 3.2% growth in January, while economists polled by Reuters had expected a contraction of 0.3%.
A separate report showed U.S. producer prices unexpectedly fell in February, offering some hopeful signs in the fight against inflation.
The data, which came on the heels of a reading on Tuesday showing a moderation in consumer inflation last month, fueled hopes of a less hawkish Fed policy as a cooling in demand could persuade the central bank to slow the pace of its rate hikes.
U.S. Treasury yields tumbled, with traders now expecting equal chances of a 25-basis-point rate hike and a pause at the Fed's March meeting.
Amid several volatility halts, First Republic Bank fell 17.7% while PacWest Bancorp slid 17.2%, a day after shares of the battered banks staged a strong recovery.
Shares of their peer Western Alliance Bancorp as well as those of bank and brokerage Charles Schwab Corp. reversed early declines to rise 7.1% and nearly 2% respectively.
"In the financial markets, you just have to look at the ones that could weather through and don't have as much investment risk on their on their portfolio," said Jeffrey Carbone, managing partner at Cornerstone Wealth.
Big U.S. banks including JPMorgan Chase & Co., Citigroup and Bank of America Corp. fell between 1% and 6%.
The KBW regional banking index slid 1.4%, while the S&P 500 banking index dropped 3.7%.
Most of the 11 major S&P 500 sectors were in the red, with energy down 5.6% and leading declines.
At 11:57 a.m. ET, the Dow Jones Industrial Average was down 585.89 points, or 1.82%, at 31,569.51, the S&P 500 was down 60.75 points, or 1.55%, at 3,858.54, and the Nasdaq Composite was down 100.00 points, or 0.88%, at 11,328.15.
Weighing on the industrials-heavy Dow Jones, Boeing Co. shed 5.8% after the company on Tuesday said its aircraft deliveries fell in February.
Declining issues outnumbered advancers by a 4.63-to-1 ratio on the NYSE and by a 3.09-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 32 new lows, while the Nasdaq recorded eight new highs and 292 new lows.

Connecting the Dots:

A.W. Clausen was the chairman & CEO for the Bank of America Corp. and an honorary trustee at the Brookings Institution (think tank).

Foundation to Promote Open Society was a funder for the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Judith Rodin was an honorary trustee at the Brookings Institution (think tank) and is a director at Citigroup Inc.

Joan E. Spero was an honorary trustee at the Brookings Institution (think tank), and is a director at Citigroup Inc.

Ann Dibble Jordan is an honorary trustee at the Brookings Institution (think tank) and was a director at Citigroup Inc.

Charles O. Prince III was a trustee at the Brookings Institution (think tank), and the chairman & CEO for Citigroup Inc.

Klaus Kleinfeld is a trustee at the Brookings Institution (think tank) and was a director at Citigroup Inc.

Lawrence H. Summers was a trustee at the Brookings Institution (think tank) and is a consultant for Citigroup Inc.

Geoffrey T. Boisi is an honorary trustee at the Brookings Institution (think tank) and was the vice chairman for JPMorgan Chase & Co.

Crandall C. Bowles is a trustee at the Brookings Institution (think tank) and a director at the JPMorgan Chase & Co.

Ellen V. Futter is a trustee at the Brookings Institution (think tank) and was a director at the JPMorgan Chase & Co.

James S. Crown is a director at JPMorgan Chase & Co., and a trustee at the Aspen Institute (think tank).

Foundation to Promote Open Society was a funder for the Aspen Institute (think tank) and the Harlem Children's Zone.

George Soros was the chairman for the Foundation to Promote Open Society and a benefactor for the Harlem Children's Zone.

Michael R. Bloomberg was a benefactor for the Harlem Children's Zone and is the founder of the Bloomberg Family Foundation.

Bloomberg Family Foundation was a funder for the Aspen Institute (think tank).

John J. Mack is a director at the Bloomberg Family Foundation, was the benefactor for the Harlem Children's Zone, a co-CEO for the Credit Suisse Group, and the president & CEO for Credit Suisse First Boston.

Credit Suisse First Boston is the former name for the Credit Suisse Group.

Credit Suisse Group was the Bailout Money Market Mutual Fund Liquidity borrower, and the Bailout Term Auction Facility borrower.

Credit Suisse Group was a funder for the Bill, Hillary & Chelsea Clinton Foundation.

Bloomberg Family Foundation was a funder for the Bill, Hillary & Chelsea Clinton Foundation.

Open Society Foundations was a funder for the Bill, Hillary & Chelsea Clinton Foundation and the American Constitution Society.

George Soros is the founder & chairman for the Open Society Foundations.

Eric H. Holder Jr. was a board member for the American Constitution Society and a partner at Covington & Burling LLP.

John C. Dugan is a partner at Covington & Burling LLP and was a director at the Federal Deposit Insurance Corporation (FDIC).

Covington & Burling LLP is the lobby firm for the Credit Suisse Group.

Peter F. Weibel was a director at the Credit Suisse Group and is a Swiss advisory council member for the American Swiss Foundation.

Faith Whittlesey is the chair emerita for the American Swiss Foundation and was the U.S. ambassador for Switzerland.

Swiss National Bank is the central bank for Switzerland, and swapped the Swiss franc for dollars in the Bailout Central Bank Liquidity Swap Lines.

Olivier Steimer is the vice chairman of the bank council for the Swiss National Bank, and a division chairman for the Credit Suisse Group.

Philipp M. Hildebrand was the president for the Swiss National Bank and is a member of the Group of Thirty.

Roger W. Ferguson Jr. is a member of the Group of Thirty and was the chairman for the Swiss Re America Holding Corporation.

Timothy F. Geithner was a member of the Group of Thirty, the treasury secretary for the Barack Obama administration and an overseer at the International Rescue Committee.

Foundation to Promote Open Society was a funder for the International Rescue Committee and the Brookings Institution (think tank).

George Soros was the chairman for the Foundation to Promote Open Society.

Mario Draghi is an honorary trustee at the Brookings Institution (think tank) and a member of the Group of Thirty.

Lawrence H. Summers was a trustee at the Brookings Institution (think tank), the National Economic Council chairman for the Barack Obama administration, is a member of the Group of Thirty and a consultant for Citigroup Inc.