Lehman failed since it had losses on bad investments and did not have sufficient capital.
Credit Suisse on the other hand was stable and had sufficient capital.
due to a run on its deposits caused by fear and panic of its depositor
ailed to change the sentiment and the bank faced outflows of more than $122bn within three months.
provide liquidity of $100bn to UBS for support
sentiment of markets is so weak that even a relatively stable bank
Deutsche Bank in Germany could face a similar crisis.
First Republic Bank has seen outflows of $70bn (40 per cent of its total deposits) and PacWest has lost a fifth of its deposits
small banks in the US have seen a total of $190bn and large banks have seen outflows of $23bn.
The primary trigger for the banking crisis is the rise in US interest rat
who were suffering from an outflow of capital towards the US dolla
unintended and unexpected casualty.
holdings in US government bonds.
The sharp rise in interest rates means that the prices of these bonds have fallen substantially.
the bank is forced to sell these bonds and incur a loss.
also now valued at prices far lower than what they paid for.
real estate are illiquid
which essentially made the bank insolvent.
S banks have unrealised losses of over $620bn due to investments in low yielding government bonds.
peaked and are expected to further increase by at least another 25 basis points to 5.25pc
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