Salem Radio Network News Wednesday, May 31, 2023


StanChart CEO says Credit Suisse bond wipeout had profound impact

HONG KONG (Reuters) – Standard Chartered Chief Executive Bill Winters said on Friday Credit Suisse’s $17 billion Additional Tier 1 bonds wipeout had “profound” implications for global bank regulations.

Winters was speaking at a financial forum in Hong Kong.

As part of the deal for UBS to take over Credit Suisse, the Swiss regulator determined that Credit Suisse’s AT1 bonds with a notional value of $17 billion would be wiped out, a decision that stunned global credit markets and angered many holders.

“The issue isn’t do the regulator’s have confidence in our solvency? It’s does the market have confidence in our liquidity?” Winters said, referring to the recent banking crisis in Europe and U.S.

(Reporting by Selena Li in Hong Kong, Writing by Scott Murdoch in Sydney; Editing by Jacqueline Wong and Christian Schmollinger)


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