Sources: Large US banks view Credit Suisse exposure as manageable – Reuters

Anil Panchal FXStreet

Reuters cites three anonymous industry sources on Wednesday to say, “Large US banks have managed their exposure to Credit Suisse in recent months and view risks from the lender as contained so far.”

The industry sources spoke before Swiss financial regulator Financial Market Supervisory Authority (FINMA) and the Swiss National Bank (SNB) said on Wednesday that the SNB would provide Credit Suisse liquidity "if necessary", a first for a global bank since the financial crisis, reported Reuters.

Additional quotes

Credit Suisse said in a statement that it welcomed the news.

Bankers were more concerned about contagion or unexpected effects of the Swiss lender's troubles that are not yet understood, one source said.

A top U.S. bank is still dealing with Credit Suisse as a counterparty, but is carefully managing its exposure, which is small, according to a source.

One asset manager in New York was assessing its trading counterparty risk with Credit Suisse, according to a source familiar with the situation.

People are all examining their books, what open positions we have with Credit Suisse.

The European Central Bank (ECB) had contacted banks on its watch to quiz them about their exposures to Credit Suisse, two supervisory sources told Reuters.

Also read: Forex Today: Dollar and Yen jump as panic takes over markets

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Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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