This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Swiss Banks Deny Funding Rumors

NEW YORK ( TheStreet) -- UBS (UBS) and Credit Suisse (CS - Get Report) have firmly denied rumors they accessed short-term dollar funding via the Swiss National Bank amid heightened fears about liquidity problems at Europe's financial institutions.

Under the so-called 'Term Auction Facility,' a number of central banks have a dollar-based swap arrangement in place with the Federal Reserve -- a throw-back to the funding difficulties experienced by banks at the height of the global financial and sovereign debt crises.

Last week the banking industry was beset with rumours that a Swiss bank had accessed the U.S. liquidity facility through the SNB, according to the Financial Times.

In a terse statement issued Friday, UBS said it had not made use of the Fed facility through the SNB, adding, "These rumors are completely unfounded."

Credit Suisse also issued a statement denying the rumors.

It follows news that the European Central Bank issued a $500 million loan to an un-named financial institution on Wednesday, further fuelling market speculation that Europe's banks may be in trouble.

After a massive sell-off across European banking stocks Thursday, some French and German banks stabilized somewhat early on Friday, clawing back some of their losses. Spanish, Italian and British banks continued to suffer, however, despite suggestions the significance of the $500 million loan may be overplayed. Europe's banks were accessing weekly dollar loans of up to $10 billion via the Fed's facility in May 2010 when the sovereign debt crisis was at its most intense.

By late morning in New York Spanish banking heavyweight Banco Santander was down 4.28%, Italy's Unicredit was down 2.98% whie Intesa Sanpaolo was down 3.6%. Britain's Lloyds was down 3.59%.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CS $27.04 0.00%
UBS $19.83 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs