Falling Dominoes: Credit Suisse Topples With UBS Takeover
Europeans woke up this morning to troubling financial news. Shares of Credit Suisse plunged 60.5 percent in trading Monday morning after Swiss banking giant ubs announced on Sunday it would buy its rival for nearly $3.25 billion. The deal was brokered by regulators fearing large-scale ramifications for the global banking system.
- ubs itself is in trouble; its shares plunged 8 percent on the Swiss stock exchange this morning.
- The failure of two U.S. banks, Silicon Valley Bank and Signature Bank, triggered concerns about the stability of global financial institutions.
- The banking system is built on trust; when that trust eroded, bank shares declined sharply.
Swiss President Alain Berset called the takeover “one of great breadth for the stability of international finance. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.”
European Central Bank President Christine Lagarde said the banks “are in a completely different position from 2008,” the last financial crisis, as government regulations have gotten stricter. These words are not supported by reality—the falling shares show that the supposed solutions are not working.
Prophecy says: The Bible reveals in Revelation 13 and 17 that Europe is about to rise up in opposition to the United States. For this to happen it has to decouple from the U.S. financially. Europe is about to experience a sudden upheaval and transformation to fulfill this prophecy. Our booklet He Was Right explains why we have expected this transformation to come as the result of a financial crisis. We may now see this very crisis unfolding.