Fed hikes rates by a quarter percentage point, indicates increases are near an end

Fed hikes rates by a quarter percentage point, indicates increases are near an end

Fed hikes rates 25 bps, says additional policy firming may be appropriate

WASHINGTON — The Federal Reserve on Wednesday enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end.

Along with its ninth hike since March 2022, the rate-setting Federal Open Market Committee noted that future increases are not assured and will depend largely on incoming data.

“The Committee will closely monitor incoming information and assess the implications for monetary policy,” the FOMC’s post-meeting statement said. “The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”

That wording is a departure from previous statements which indicated “ongoing increases” would be appropriate to bring down inflation.

While comments Fed Chair Jerome Powell made during a news conference were taken to mean that the central bank may be nearing the end of its rate-hiking cycle, he qualified that the inflation fight isn’t over.

“The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy,” the central bank leader said.

Also, Powell acknowledged that the recent events in the banking system were likely to result in tighter credit conditions, and that was likely why the central bank’s tone had softened.

Still, he said that despite market pricing to the contrary, “rate cuts are not in our base case” for the remainder of 2023.

Stocks initially rose after the Fed’s decision, but slumped following Powell’s remarks.

“The U.S. banking system is sound and resilient,” the committee said, in its prepared statement. “Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.”

During the news conference, Powell said the FOMC considered a pause in rate hikes in light of the banking crisis, but ultimately unanimously approved the decision to raise rates due to intermediate data on inflation and the strength of the labor market.

“We are committed to restoring price stability and all of the evidence says that the public has confidence that we will do so, that will bring inflation down to 2% over time. It is important that we sustain that confidence with our actions, as well as our words,” Powell said.

Rate cuts are not in our base case, says Fed Chair Powell

The increase takes the benchmark federal funds rate to a target range between 4.75%-5%. The rate sets what banks charge each other for overnight lending but feeds through to a multitude of consumer debt like mortgages, auto loans and credit cards.

Projections released along with the rate decision point to a peak rate of 5.1%, unchanged from the last estimate in December and indicative that a majority of officials expect only one more rate hike ahead.

Data released along with the statement shows that seven of the 18 Fed officials who submitted estimates for the “dot plot” see rates going higher than the 5.1% “terminal rate.”

The next two years’ worth of projections also showed considerable disagreement among members, reflected in a wide dispersion among the “dots.” Still, the median of the estimates points to a 0.8 percentage point reduction in rates in 2024 and 1.2 percentage points worth of cuts in 2025.

The statement eliminated all references to the impact of Russia’s invasion of Ukraine.

Markets had been closely watching the decision, which came with a higher degree of uncertainty than is typical for Fed moves.

Jerome Powell, chairman of the US Federal Reserve, speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, on Wednesday, March 22, 2023.

Al Drago | Bloomberg | Getty Images

Earlier this month, Powell had indicated the central bank may have to take a more aggressive path to tame inflation. But a fast-moving banking crisis thwarted any notion of a more hawkish move – and contributed to general market sentiment that the Fed will be cutting rates before the year comes to a close.

Estimates released Wednesday of where Federal Open Market Committee members see rates, inflation, unemployment and gross domestic product underscored the uncertainty for the policy path.

Officials also tweaked their economic projections. They slightly increased their expectations for inflation, with a 3.3% rate pegged for this year, compared with 3.1% in December. Unemployment was lowered a notch to 4.5%, while the outlook for GDP nudged down to 0.4%.

The estimates for the next two years were little changed, except the GDP projection for 2024 came down to 1.2% from 1.6% in December.

The forecasts come amid a volatile backdrop.

Despite the banking turmoil and volatile expectations around monetary policy, markets have held their ground. The Dow Jones Industrial Average is up some 2% over the past week, though the 10-year Treasury yield has risen about 20 basis points, or 0.2 percentage points, during the same period.

While late 2022 data had pointed to some softening in inflation, recent reports have been less encouraging.

The personal consumption expenditures price index, a favorite inflation gauge for the Fed, rose 0.6% in January and was up 5.4% from a year ago – 4.7% when stripping out food and energy. That’s well above the central bank’s 2% target, and the data prompted Powell on March 7 to warn that interest rates likely would rise more than expected.

But the banking issues have complicated the decision-making calculus as the Fed’s pace of tightening has contributed to liquidity problems.

Closures of Silicon Valley Bank and Signature Bank, and capital issues at Credit Suisse and First Republic, have raised concerns about the state of the industry.

While big banks are considered well capitalized, smaller institutions have faced liquidity crunches due to the rapidly rising interest rates that have made otherwise safe long-term investments lose value. Silicon Valley, for instance, had to sell bonds at a loss, triggering a crisis of confidence.

The Fed and other regulators stepped in with emergency measures that seem to have stemmed immediate funding concerns, but worries linger over how deep the damage is among regional banks.

At the same, recession concerns persist as the rate increases work their way through the economic plumbing.

An indicator that the New York Fed produces using the spread between 3-month and 10-year Treasurys put the chance of a contraction in the next 12 months at about 55% as of the end of February. The yield curve inversion has increased since then.

However, the Atlanta Fed’s GDP tracker puts first-quarter growth at 3.2%. Consumers continue to spend – though credit card usage is on the rise – and unemployment was at 3.6% while payroll growth has been brisk.

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Betting on NCAA Tournament Increases With Spread of Legalized Wagering

Betting on NCAA Tournament Increases With Spread of Legalized Wagering


Betting on NCAA Tournament Increases With Spread of Legalized WageringMarch Madness continues as the NCAA basketball tournament showcases sweet sixteen games tonight and Friday. However, the madness goes beyond that as a record 68 million Americans will be betting $15.5 billion on the games.

More Wagers

The American Gaming Association (AGA) estimates one in four adults (68 million) will bet on the tournament. That is a marked increase from last year’s estimate of 45 million betters. In addition, it may be well below actual bets.

The AGA estimated just over 50 million people would bet on last month’s Super Bowl. However, GeoComply, a company that tracks betting locations, reported 100 million sports bets on Super Bowl weekend. 

In addition to more betters, more money is being wagered on this year’s tournament. The $15.5 billion bet estimate is five times last year’s $3.1 billion projection. 

Why Betting is Soaring

Several factors contribute to the increase in sports betting in general and the NCAA tournament specifically. One of the most significant is the spreading legalization of sports betting.

“March Madness is one of the best traditions in American sports—and America’s most wagered-on competition,” said AGA President and CEO Bill Miller. “Critically, the expansion of regulated sports betting over the past five years has brought safeguards to more than half of American adults who can now bet legally in their home market.”

More states have legalized sports betting. In addition, more states are considering some form of legalized gambling. Currently, 33 states and the District of Columbia allow sports betting. Another three states have authorized sports betting, but have not launched their programs. In addition, nine states have legislative or ballot measures in place to legalize such wagering.

On top of that, the return to the office has spurred the return to the bracket contests, according to the AGA.

In fact, bracket betting is how most people will be wagering on March Madness. The AGA study found that 56.3 million people will poney up a bracket bet this year. Another 21.5 million Americans say they will wager with a friend. At the same time, 31 million of us will bet online, through a retail sportsbook, or with a bookie.

Risky Risk-Free Betting

Increased legalization of online betting is expected to bring in a lot of new blood. The AGA reports that three-quarters of online betters this year will be doing so for the first time.

Many people wagering online for the first time are offered a no lose opportunity called a “risk-free” bet. 

Here is how a risk-free bet works. You make your first bet using your own money. If it wins, you continue betting or withdraw the proceeds. If you lose, you get a risk-free bet or cite credit equal to the amount of your first bet. Although, free bets or credits are limited to certain amounts. Those amounts vary according to the gambling site.

You can not withdraw the free bet or credit until you have made one or more additional bets.

The danger of risk-free bets is not in gambling, casinos, or online venues. It is in the frailty of the human psyche. 

Risk-free bets are marketed the same way old-line heroin dealers attract first-time customers to their product – “the first one’s free”. Just like heroin, alcohol, pills, sex, and even food – gambling can become addictive. 

To guard against gambling getting out of hand, Miller has a few suggestions.

“With the excitement around March Madness, the AGA and our members want to remind anyone getting in on the action to have a game plan to bet responsibly,” said Miller. “That means setting a budget, knowing the odds, keeping it social, and always playing legally.”


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Over 50 With Wanderlust? Grab a Grown Up Gap Year With These Top Tips

Over 50 With Wanderlust? Grab a Grown Up Gap Year With These Top Tips

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If you are over 50, you may be yearning to travel the world and experience adventures which many in their 20’s now take for granted.  It may be that you have more time and money after a long working life, as well as a renewed inspiration for exploration and so may be looking to grab golden travel opportunities – whether for an extended holiday, or even a whole year off abroad.

You may be lucky enough to be able to fund these trips through private pensions, especially by taking the tax-free 25 per cent drawdown.  Or, it could be that you are looking for a career break to quench your wanderlust!

If so, then you are not alone as there is now the growing phenomenon known as a  ‘grown up gap year’, made popular by people in their 50’s and beyond embarking on a trip of a lifetime extending from anything between six weeks and up to 18 months.

However, if you are considering this, it is worth getting some expert advice before you go, so that your trip goes smoothly, even if something goes wrong whilst you are away.

Tim himself has travelled all over the world, including Australia, the Far East and Nepal.  He set up True Traveller in 2010 with two other travellers who first met each other when they all worked for a very well-known travel company in Earls Court, London in the late 1980s.

Tims Grown Up Travel Tips

Book Through An Expert

Tim says, If you can, my first piece of advice is to book your trip through a really good travel agent. Trailfinders and Hays Travel are well known, financially secure and made sure they refunded people quickly during the pandemic when it all went wrong.

Check how flexible your tickets are and how much it would cost to to change or re-route. Trailfinders operates an extremely useful 24/7 number for urgent travel customer enquiries for when youre overseas and airlines prove unhelpful when it comes to changes.

Make Sure You Are Insured For Your Particular Needs

Tim continues,It may be boring, but it is vital to make sure you have adequate travel insurance for your particular needs when you are away. 

For example, do you need cover which allows you to return home at any point? Our specialist gap year and backpacker cover allows you to return home mid-trip – which many over 50s may well need to do so that they can keep an eye on children, their home, parents or pets.  This is worth noting, as with many insurers, returning home mid-trip may immediately void the cover.

As well as this, check that your insurance provider will allow you to extend your policy if necessary.  Also, does it cover all your activities you may take part in, such as white water rafting or bungee jumping?  Its also important to make sure you have a policy which allows you to travel for a full year for one long trip.

Go to the Dentist Before You Go

It is worth getting a full medical check-up, including a trip to the dentist before you go away, according to Tim: No one ever wants to go to the dentist, but if youre away for more than a few weeks, you probably wont want to see one in a far-flung area of the world. Youd be wishing youd just gone to see your dentist before you left.

In general, dentists are the same as at home, aside from very remote areas in Africa and parts of Asia, where youd probably need to get to a large city to get treatment. Costs do vary wildly though, and in North America dentistry is extremely expensive.

Travel insurance generally has limits as to how much you can spend on dentistry, and usually its only for emergency treatment to relieve pain.  We pay out hundreds of dental claims each year, and usually the amount paid out doesnt cover the whole cost of treatment anyway, so, do yourself a favour. See your dentist before you set off!

Email Important Documents to Yourself

If you lose your passport abroad, getting the local embassy to issue you with an Emergency Travel Document (ETD) is made a lot easier if you can provide them with printed out copies of your documentation.

So before you go, take photos, or scan all your important documents such as passports, visas, e-tickets, credit cards, and travel insurance policy documents and email that to yourself.

Another useful feature of True Traveller cover is that it is the first travel insurer to be compatible with Apple and Android Wallet. This means that policy details are available on smartphones supporting Wallet functions as soon as cover is purchased, so you have all your travel insurance cover details at your fingertips, alongside flight boarding passes and other tickets needed for travel.

Tim says, This new function makes it convenient as people like the ease of using wallets on their phones – especially for travel – and so now they’ll never lose their insurance details and can be safe in the knowledge that well update any changes they may need.  However, for a long trip, I always advise that it is prudent to have all your important documents backed upby emailing them to yourself before you go.

Consider Getting a Second Passport

Tim says, Getting a full new British passport when youre abroad takes many weeks to process, so, if youre going through lots of different countries on your journey, you may want to consider getting a second passport before you leave and get a family member to FedEx it to you should your original passport be lost or stolen.

Buy a Currency Card

Tim adds,Getting a currency card is very useful, as usually you get free withdrawals from cash machines throughout the world, rather than the 2% or more your bank will probably charge you. You can do all the transfers to it from the internet, and usually you get a secondary card just in case you lose your first one, or have one in your travel wallet and one in your main wallet. The popular choices for travellers currency cards are Revolut or Currensea, but there are others out there as well!

True Traveller’s Gap Year and Backpacker travel insurance can both be taken out up to the age of 65, so are ideal for those taking a for career break or ‘grown up gap year’.  Benefits include medical and repatriation cover of up to £10m, and 92 activities as standard.

Both are available for trips up to 18 months, or even up to two years for trips to the USA and Canada, with prices starting from around £35.80 for a month in Europe.

For information or a quote go to https://www.truetraveller.com/

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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UK inflation rate breaks 3-month stretch of declines with surprise rise to 10.4%

UK inflation rate breaks 3-month stretch of declines with surprise rise to 10.4%

U.K. inflation data paints a picture of the British economy.

Bloomberg / Contributor / Getty Images

U.K. inflation unexpectedly jumped in February, as food and energy bills continued to rise, placing further pressure on households.

The consumer price index (CPI) increased by an annual 10.4%, above the 9.9% consensus forecast among economists in a Refinitiv poll and up from 10.1% in January. On a monthly basis, CPI inflation was 1.1%, exceeding a forecast of 0.6%.

“The largest upward contributions to the monthly change in both the CPIH and CPI rates came from restaurants and cafes, food, and clothing, partially offset by downward contributions from recreational and cultural goods and services (particularly recording media), and motor fuels,” the U.K. Office for National Statistics said.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 9.2% in the 12 months to February 2023, up from 8.8% in January.

The surprise increase in February marked a break from three consecutive months of slowing price increases since the 41-year high of 11.1% reached in October.

British households continue to contend with high food and energy bills, while workers across a range of sectors have launched mass strike action in recent months amid disputes over pay and conditions.

Sterling rose by 0.4% against the dollar early on Wednesday.

Bank of England ‘on a knife edge’

The print will pose a further headache for the Bank of England, which has been hiking interest rates aggressively in a bid to rein in inflation and will announce its latest monetary policy decision on Thursday.

Richard Carter, head of fixed interest research at Quilter Cheviot, said that the downward path for inflation will not be smooth, and suggested the Bank of England may be forced to continue increasing the bank rate beyond its current level of 4%.

“The rhetoric from the BoE will continue to be that inflation is the primary concern, however, events in the banking sector have somewhat taken over and the Monetary Policy Committee has been seeing significant divisions on the best way forward,” he said.

The fallout from the failure of Silicon Valley Bank and the emergency rescue of Credit Suisse has added a further layer of complexity to the task facing central bankers around the world.

The collapse of Credit Suisse is an 'idiosyncratic' issue, former UBS UK CEO says

Last week, the independent Office for Budget Responsibility projected that U.K. inflation would plummet to 2.9% by the end of 2023 — a forecast Carter said was “increasingly ambitious” in light of the Wednesday print.

“How much the banking crisis will have changed this prediction remains to be seen, but it does feel a very punchy estimate,” he said.

Jake Finney, economist at PwC, said the reading was the first setback in the Bank of England’s mission since inflation began falling in November, and highlighted that inflationary pressures are starting to diverge.

“Food price inflation continues to reach new heights and restaurants and cafes prices increased further, while on the other hand, transport price inflation continued its downward trajectory as petrol and diesel prices fell back further,” he said.

Watch CNBC's full interview with Bank of England Governor Andrew Bailey

Despite the bump in the road, PwC still sees inflation falling throughout most of 2023 to finish much closer to the Bank’s 2% target. Finney nevertheless noted that “the living standards squeeze is not over yet.”

The OBR expects real household disposable income per person, a measure of living standards, to fall by a cumulative 5.7% in 2022/23 and 2023/24.

“The Bank of England’s decision on Thursday remains on a knife-edge. The latest inflation data provides a setback but the Bank of England have made clear they will not be swayed by month-to-month changes in data points,” Finney said.

“We are expecting to see one final 25bp hike from the Bank of England. However, further volatility in the financial markets could turn sentiment towards a no change decision.”

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5 Creative Ways To Raise Medical Funds for a Friend or Relative

5 Creative Ways To Raise Medical Funds for a Friend or Relative

Raise Medical Funds for a Friend or Relative


Medical expenses can add up quickly, and many people end up burdened by their bills. Fortunately, there are options you can use to alleviate the stress a friend or relative is experiencing after having a healthcare emergency. Here are five creative ways to raise medical funds for a friend or relative.

1. Use a Crowdfunding Platform

Usually, the simplest way to raise medical funds is using a crowdfunding platform. It’s a place where people can tell their friend’s or relative’s story, making the campaign feel more personal. Plus, it’s easy to advertise the page on social media or circulate it among other loved ones. The financial side is also streamlined, as the platform handles the processing and releasing of funds.

2. Get Support from a Live Streamer

If you’re a live streamer or are close to one, you can hold a live stream where all provided funds are redirected to your friend or family member’s medical bills. In some cases, you can take donations through the streaming platform directly. If that’s not possible, then guide viewers to an appropriate crowdfunding platform after setting up a fundraiser there.

This option works because it can help build excitement and creates opportunities for those who donate to receive thanks. Just be aware that it works best if the viewer count is reasonably sizeable. Additionally, make sure to review any streaming platform rules before holding the event, ensuring there aren’t any restrictions that bar this type of activity.

3. Hold a Group Yard Sale

One low-cost way to raise funds for someone’s medical expenses is a group yard sale. See who would like to participate and then see which house has the best location for such a sale. As the date of the sale draws closer, have everyone start bringing the items they’d like to sell to the selected home. Work together to set prices and decide which things should be placed with others on the sale day.

Make sure you get a suitable amount of change – including small bills and actual coins – before the sale day, too. Then, have a few people working the sale at all times, making it easier to engage with buyers and keep items and money secure. At the end of the day, recoup any out-of-pocket expenses, such as the change someone had to prepare, and let the rest of the money assist your friend or family member.

4. Set Up a Fundraising Dinner

Fundraising dinners are charitable events where participants pay for a meal, and the funds provided go to a particular cause, like a person’s medical bills. With these, it’s often easiest to coordinate with a community nonprofit or religious organization your family member or friend is connected to in some capacity. By doing so, you can increase your odds of getting a high number of attendees, leading to more donations.

Generally, you’ll want to have a per-plate donation to attend the dinner, but it’s also wise to allow people to donate more during the event. You can even couple the deal with other donation-generating activities, such as the option listed below.

5. Coordinate a Raffle

A raffle can be a fun way to raise funds for a variety of purposes, including a family member’s or friend’s medical bills. However, you’ll need to coordinate with an organization that’s authorized to hold raffles in your state. Raffles are often akin to gambling in the eyes of the local government, and only approved and licensed entities are allowed to conduct them.

However, there are organizations that may be willing to assist with the raffle. Local nonprofits and religious organizations may have the appropriate authorizations. As a result, you may be able to partner with them to conduct a raffle on behalf of your family member or friend. Laws do vary by state, so check the rules in your area to determine whether such a partnership is necessary.

Once you find a way to hold the raffle, you’ll need to get prizes to offer. While this usually involves an upfront expense, those costs could be offset by the ticket sales. To increase your chances of selling enough tickets, you need to ensure that the raffle is a major event with enough attendees to reach the associated financial goal. If you’re partnering with an organization, they can potentially assist in that regard as well, increasing your odds of success.


Do you know of any other creative ways to raise medical funds for a friend or relative that people should consider? Did you use one of the strategies above and want to tell others about your results? Share your thoughts in the comments below.


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Saudi National Bank loses over $1 billion on Credit Suisse investment

Saudi National Bank loses over $1 billion on Credit Suisse investment

Signage for Credit Suisse Group AG outside a building, which houses the company’s branch, in Tokyo, Japan, on Monday, March 20, 2023. UBS Group AG agreed to buy Credit Suisse Group in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.

Kosuke Okahara | Bloomberg | Getty Images

Saudi National Bank is nursing major losses in the wake of the forced takeover of Credit Suisse by UBS to for $3.2 billion.

Saudi National Bank — Credit Suisse’s largest shareholder — confirmed to CNBC on Monday that it had been hit with a loss of around 80% on its investment.

The Riyadh-based bank holds a 9.9% stake in Credit Suisse, having invested 1.4 billion Swiss francs ($1.5 billion) in the 167-year-old Swiss lender in November of last year, at 3.82 francs per share.

Under the terms of the rescue deal, UBS is paying Credit Suisse shareholders 0.76 francs per share.

The significant discount comes as regulators try to shore up the global banking system.The scramble for a rescue follows a tumultuous few weeks which saw the collapse of U.S.-based Silicon Valley Bank and shares of First Republic Bank tank as well as major stock price downturns across the banking sector internationally.

Shares of UBS, Switzerland’s largest bank, traded down 10.5% at 9:28 a.m. London time (5:28 a.m. ET), while Europe’s banking sector was around 4% lower. Credit Suisse was down a whopping 62%.

The Saudi National Bank (SNB) headquarters beyond the King Abdullah Financial District Conference Center in the King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia, on Tuesday, Dec. 6, 2022.

Bloomberg | Bloomberg | Getty Images

Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Shares of the lender were up 0.58% on Monday at 9:30 a.m. London time.

“As at December 2022, SNB’s investment in Credit Suisse constituted less than 0.5% of SNB’s total Assets, and c. 1.7% of SNB’s investments portfolio,” Saudi National Bank said in a statement.

It said there was “nil impact on profitability” from a “regulatory capital perspective.”

“Changes in the valuation of SNB’s investment in Credit Suisse have no impact on SNB’s growth plans and forward looking 2023 guidance,” it added.

The Qatar Investment Authority, Credit Suisse’s second-largest investor, holds a 6.8% stake in the bank and also suffered a steep loss. QIA did not reply to a request for further details.

Saudi shareholder ‘shot themselves in the foot’

SNB’s feeling right now is probably like all shareholders in CS — utter anger that management have let the situation get to this point.

Simon Fentham-Fletcher

Chief investment officer, Freedom Asset Management

The sharp and sudden downturn that began last week and led to the bank’s emergency sale is partially the fault of Saudi National Bank itself, some argue.

Saudi National Bank Chairman Ammar Al Khudairy on Wednesday was asked by Bloomberg if it would increase its stake in the troubled Swiss lender. His reply was “absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory.”

The comment triggered investor panic and sent Credit Suisse shares down 24% during that session, although the statement wasn’t in fact new; the Saudi bank said in October that it had no plans to expand its holdings beyond the current 9.9%.

“Even though the situation at Credit Suisse was not perfect and investors had a lot of question marks about the future of the bank, SNB didn’t help calm down investors and shot themselves in the foot” with the chairman’s comments, one UAE-based investment banker, who requested not to be named due to professional restrictions, told CNBC.

“As the largest shareholders in the bank, they had the most to lose if the bank goes under, and this is exactly what happened,” the banker said.

Panic over Credit Suisse is 'unwarranted,' Saudi National Bank chairman says

The Saudi National Bank chairman did attempt to calm the situation the following day, telling CNBC’s Hadley Gamble in Riyadh that “if you look at how the entire banking sector has dropped, unfortunately, a lot of people were just looking for excuses.”

“It’s panic, a little bit of panic. I believe completely unwarranted, whether it be for Credit Suisse or for the entire market,” Al Khudairy said. His comments ultimately failed to stem the bank’s continued rout.

The messy fallout, which spilled over across the entire banking sector, has ruptured market confidence and stoked fears of another global banking crisis. Swiss Finance Minister Karin Keller-Sutter set out to reassure angry taxpayers during a news conference Sunday, stressing that “this is a commercial solution and not a bailout.”

Credit Suisse crisis: The market is in 'seek and destroy' mode, analyst says

“SNB’s feeling right now is probably like all shareholders in CS — utter anger that management have let the situation get to this point,” Simon Fentham-Fletcher, chief investment officer at Abu Dhabi-based Freedom Asset Management, told CNBC.

“For years CS lurched from crisis to regulatory fine and changed management as it emerged in a new path. Finally the bank ran out of time,” he said.

He said that shareholders, specifically large ones like Saudi National Bank, will likely now want to reappraise the way they make investments and “where the stake is as large as it was here, will probably want to start embedding people so they properly understand what is happening inside their investments.”

Read more about energy from CNBC Pro

“This might see a rise in activist shareholders not just wanting a board seat but real eyes and ears,” he added, noting that the last few weeks of market turmoil will undoubtedly put a significant dent in investor desire for risk.

From a risk perspective, Fentham-Fletcher said, “generally I think that we will see a pullback in all risk appetite as confidence has just taken a severe beating, and this combined with the apparent upending of the capital structure rules will undoubtedly make people pause.”

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