Credit Suisse crash: CMVM guarantees that "there is no cause for concern" in Portugal

The chairman of the Securities Market Commission (CMVM), Luís Laginha de Sousa, assured this Saturday that there are no direct impacts on Portugal from the credit suisse crisis and bank failures in the United States.

In an interview with Antena 1 radio and Jornal de Negócios, Laginha de Sousa said that “there is no reason to worry” about the direct impacts of the bankruptcy of American banks and the crisis at the Swiss bank, warning, however, of the need to maintain the vigilance, because trust has to be preserved.

“We have to be aware that we do not live in a world made up of islands and, sometimes, there are second-order phenomena and, above all, in matters where what is sometimes at stake are elements that are intangible – we are talking about reliable. And, from that point of view, the authorities, whether at the national or European level, have to act in order to contribute to preserving this good”, he said.

The former director of Banco de Portugal who, since November, has presided over the capital market supervisor, added that the CMVM is monitoring the situation, adding that the matter should be addressed at the regular meeting of the National Council of Financial Supervisors, which takes place on Monday -fair.

“I think what is important to point out is that we follow these matters and, at this moment, in what has to do with these direct effects of direct exposure, we do not see any reason for any concern at this moment”, stressed the person in charge.

On Thursday, the Credit Suisse became the first large bank worldwide to receive emergency public assistance since the 2008 financial crisis.

Regarding the hike in interest rates by the European Central Bank (ECB), Laginha de Sousa said he believed that the decision was taken “in the light of the best information available”, considering it to be a “healthy evolution”, since it is reviewed in a model in which access to financial resources has a cost.

“In the context of what is the normal functioning of an economy, it is normal that whoever needs financing has to pay for it and does not have negative interest rates”, he noted, noting, however, that it is important to ensure that there are ways to support “ those who cannot cope with the consequences of it.”

The president of the CMVM also defended the need to make investment in capital “more attractive”, considering it fundamental to “channel incentives or eliminate disincentives” so that companies can have “the desire to invest”.

“Taxation is an unavoidable point, but it is not unique and there are political choices that have to be made and those who make those choices have to look at a much wider range of equilibria than those who are alone from the perspective of the capital market. capitals”, he concluded.

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Deborah Acker

I write epic fantasy; self-published via KDP. Devoted dog mom to my 10 yr old GSD, Shadow! DM not a priority; slow response at best #amwriting #author.

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