Caricatures and drawings on Forex portal
Falling of Credit Suisse now everyone’s problem
JPMorgan analysts suggest that almost everyone will feel the effects of the recent banking crisis. They warn that the problems Credit Suisse is now facing are just “the tip of an iceberg” and the entire system will require repairing.
JPMorgan forex strategists argue that the turmoil in the Swiss banking sector has harmed global financial markets. According to Bob Michele, the Chief Investment Officer at JPM Asset Management, the banking system and the economy may soon show new signs of trouble. The issues Credit Suisse had to deal with after the collapse of Silicon Valley Bank are just the start of global banking upheaval.
Silicon Valley Bank was the 16th largest bank in the United States. It filed for bankruptcy on March 11, which marked the worst financial meltdown in 15 years.
Bob Michele predicts that almost everyone inside and outside the banking system will soon see long and various effects on the market, some coming with delay. JPM Asset Management’s Chief Investment Officer believes it may be just “the tip of an iceberg.”
Credit Suisse, Switzerland’s second-largest bank, came into the spotlight after the collapse of Silicon Valley Bank. On March 15, its shares crashed by 30.8% to an all-time low of $1.55 apiece on the Swiss Stock Exchange (SIX), the biggest one-day drop.
In this light, JPMorgan analysts warn of an economic recession in late 2023 or early 2024. Bob Michele assumes the US Federal Reserve will pause rate hikes, fearing the economy may be too fragile to withstand interest rates at their peaks.
Published 23 March 2023
© InstaFintech Group
![]()
© InstaFintech Group
