Credit Suisse Shares Plunge in Zurich

Credit Suisse shares have plummeted in Zurich due to a sharp drop in US stock futures, adding to the sense of unease investors have been feeling since Silicon Valley Bank's collapse.

Former Goldman CEO Larry Fink warns lawmakers of the risks in leaving too much money with too-big-to-fail banks, especially given the 2008 economic downturn. If this occurs, it could trigger a global banking crisis.

1. Goldman Sachs

Goldman Sachs is one of Wall Street's iconic firms, founded 150 years ago by Marcus Goldman and long considered to be the gold standard in investment banking. However, during the financial crisis its reputation took a serious hit and its business suffered as well.

The bank's global headquarters are in New York City, but it operates subsidiaries around the world with a diverse clientele. It provides services in investment banking (advisory for mergers and acquisitions and restructuring), securities underwriting, asset management and wealth management.

Furthermore, the company acts as a market maker and brokers credit products, mortgage-backed securities, insurance-linked securities, currencies, commodities, equities, equity derivatives, structured products, options and futures contracts. Furthermore, it provides clearing and custodian bank services.

Goldman Sachs Global Banking and Markets Division provides investment banking, equity and debt underwriting, fixed income, currency and commodities (FICC) intermediation and financing activities, relationship lending/acquisition financing as well as investing. Goldman Sachs Personal Financial Management also offers wealth management solutions.

Steven Mnuchin, a former executive of Goldman, is currently serving as US Treasury Secretary. He is one of several ex-Goldman employees to hold government positions both here in America and abroad, such as Europe, Asia, and the Middle East.

He forecasted that the current situation in the banking sector will likely impede economic growth. "Tumult in this sector may cause capital to be hoarded, investment decisions to become less cautious, and ultimately lower growth," he told Reuters.

Meanwhile, the stock market has suffered a shocking collapse, with the S&P 500 down nearly 20% since December. Peter Oppenheimer - Goldman's chief global equity strategist - told Bloomberg TV that now may be an excellent time for investors with six to twelve month time horizons to buy.

2. UBS

UBS is a Swiss bank that offers private banking, wealth management, asset management and investment banking services. With operations around the world - including in the US and Europe - and $2.6 trillion of assets under management, it stands as one of the leading providers in these areas.

Established in 1856, UBS has a distinguished history of offering top-notch financial services that are supported by their clients' trust. As one of the world's largest banks and considered one of the global systemically important financial institutions, they continue to uphold this legacy today.

UBS is renowned for its strict bank-client confidentiality, but also has a well-deserved reputation for using technology to enhance customer experiences. This includes implementing blockchain technology in London to strengthen cyber security and encrypt client activities.

As of May 2022, it remains one of the top global banks when it comes to return on invested capital and it remains in the top 10 when it comes to total assets. Unfortunately, some of its business units have experienced difficulties over time.

In 2007, UBS began to experience significant losses from the subprime mortgage market. To combat this, they swiftly injected capital into their balance sheet to protect themselves and prevent further harm from occurring.

As a result, the bank faced intense scrutiny in the US and negative attention from politicians. Furthermore, Holocaust survivors demanded compensation for wrongs committed during Nazi rule.

After the collapse of DRCM division in 2007, UBS restructured their operations and put together a new investment banking team led by Huw Jenkins to restore investor confidence. This move was intended to regain market share for themselves.

Through the 2008 financial crisis, UBS faced numerous difficulties. Yet in the end, it emerged from this difficult period stronger than ever, regaining its former prominence as a premier global investment bank. With significant operations across North America, Europe, and Asia Pacific markets, it is widely seen as a systemically important bank with global reach.

3. Credit Suisse

Credit Suisse hasn't made a profit in two years, and its shares have taken a massive hit due to a series of scandals. Last week alone, shares fell more than 25% in value - prompting investor trepidation after its largest shareholder, Saudi Arabia's national bank, said it wouldn't invest further money into it.

On Sunday, UBS agreed to purchase Credit Suisse in a deal facilitated by Swiss regulators that provided emergency funding from the central bank of Switzerland. As a result, Credit Suisse's finances were stabilized.

According to Swiss authorities, the merger between Credit Suisse and UBS should strengthen both banks' financial stability. "With this merger, both banks are in a better position to serve their clients sustainably and ensure financial stability for the benefit of Switzerland's economy," read the statement.

On Monday, Swiss regulatory body FINMA revealed that holders of Credit Suisse's debt will suffer a writedown worth 16 billion francs (approximately $17.3 billion). This unprecedented loss is evidence that the bank is struggling to settle its liabilities, as indicated by its inability to pay down loans.

One top strategist cautioned that the outcome for equity-holders could worry investors in other weak banks, particularly but not only in Europe. This could make it harder to raise equity capital, further weakening stability.

Credit Suisse has maintained a remarkable record for innovation despite its recent difficulties. Its employees take great pride in the bank's social commitment, whether that be product development, training and development or marketing initiatives. And its leadership has always set an example when it comes to breaking new ground.

4. Barclays

On Sunday, Lloyd Blankfein - former CEO of Goldman Sachs - warned the US could experience a banking crisis. His words came after watching CNN report on the collapses of Silicon Valley Bank and Signature Bank, where he noted tightening credit in America could slow economic growth.

But Blankfein also stressed the safety of Americans' deposits and stressed the necessity for reforms to safeguard those assets. If banks' assets aren't insured, people may become less cautious with their money management - potentially leading to another financial crisis like 2008!

Barclays is a London-based multinational financial services provider with global reach. As an diversified bank, they provide personal and business banking, credit cards, investment banking, as well as wealth management solutions.

The company provides savings and CD accounts with no monthly fees or minimum balance requirements, as well as various credit cards offering rewarding rewards, cash back, and special financing promotions. Through their mobile app, customers can view account information, deposit funds online or via remote transfers from linked accounts, send messages to customer service, and more.

Barclays Bank offers a limited selection of deposit products, but its high-yield savings and CD rates are worth considering. Consumers looking for high-yielding savings or CDs with no monthly fees and minimal deposit requirements should give Barclays some consideration.

Another disadvantage of this bank is the absence of branch networks in the U.S., so consumers who need face-to-face communication with a financial expert should look elsewhere for their banking needs.

The bank plans to eliminate 19,000 jobs, most of them in its investment banking division. The layoffs are part of a strategy to reduce expenses as trading revenue declines. Furthermore, they plan on shrinking their investment banking staff across Asia and other regions as well.

5. Bank of America

Bank of America is the largest bank in America and one of the world's leading financial institutions, offering banking, insurance and investments solutions to consumers, businesses and governments worldwide.

In 2006, Blankfein became CEO of Goldman Sachs and guided the company through the turbulent 2007-08 financial crisis. Utilizing low interest rates created by the Federal Reserve to de-escalate tensions, Blankfein undercut competition from other investment banks to become the second largest in America.

He helped the firm weather the economic crisis by selling loans to distressed homebuyers and working with lenders to prevent foreclosure. Furthermore, he played an instrumental role in crafting the 2007-08 bailout agreement.

Blankfein is renowned for his business acumen, but he also supports charitable causes with a joint charity foundation with his wife that has donated more than $11 million to various causes - such as $620,000 to Harvard Law School, $500K for Ethical Culture Fieldston School, $50,000 for Barnard College and $46,500 to The Robin Hood Foundation.

At Goldman, Blankfein earned an average annual salary of $24 million and received numerous awards, such as the 2008 Financial Times Person of the Year and 2009 Time magazine Person of the Year.

Before closing your bank account, make sure all outstanding debts are cleared and settled if possible. Doing this will guarantee that your credit score does not suffer as a result.

Your Bank of America routing number is an eight to 11 digit code that uniquely identifies the branch where your account resides. This data is used for processing all types of transactions, such as checks, automatic payments and online transfers.