Credit Suisse lifeline, Silicon Valley Bank collapse: What you need to know

* The U.S. Treasury is monitoring the situation around Credit Suisse and is in touch with global counterparts about it, a Treasury spokesperson said on Wednesday. MARKETS * Credit Suisse shares were up around 15% on Thursday, reversing some of the losses that stripped off a quarter of its market value the day before. * European shares erased their early gains as a 50-basis-point ECB interest rate hike amid the crisis surrounding Credit Suisse and U.S. lenders deepened investors' concerns over the banking sector.

Credit Suisse sought to restore investor confidence on Thursday by borrowing up to $54 billion from Switzerland's central bank, after a slump in its shares had intensified fears of a global banking crisis set off by a collapse of two mid-sized U.S. lenders.

DEVELOPMENTS

* Credit Suisse said early on Thursday it was taking "decisive action" to strengthen its liquidity by exercising its option to borrow from the Swiss National Bank up to 50 billion Swiss francs ($54 billion).

* The European Central Bank raised rates by 50 basis points as promised, acknowledging market strains and pledging liquidity support if needed, but also underscoring eurozone banking sector's resilience.

* Credit Suisse CEO Ulrich Koerner told staff to focus on facts as he pledged to rapidly move forward with a plan to streamline operations. * Swiss media reported the country's cabinet would hold an extraordinary meeting on Thursday to talk about the lender. The government declined to comment on the media reports.

* German corporate treasurers were urged by their industry association not to "underestimate the current situation."

* Wall Street bank JPMorgan said that Credit Suisse's takeover by another lender, probably its Swiss rival UBS , was the most likely scenario for the embattled bank.

* The head of Japan's banking lobby said on Thursday that there were so far no signs of the Japanese financial system being affected by a crisis of confidence in Credit Suisse.

* SVB Financial Group, the company whose former subsidiary Silicon Valley Bank was taken over by U.S. banking regulators last week, is exploring bankruptcy protection, people familiar with the matter said.

* The ECB has contacted banks on its watch to quiz them on their exposure to Credit Suisse, two supervisory sources told Reuters. One said, however, that they did not see the bank's problems as systemic.

* The U.S. Treasury is monitoring the situation around Credit Suisse and is in touch with global counterparts about it, a Treasury spokesperson said on Wednesday.

MARKETS * Credit Suisse shares were up around 15% on Thursday, reversing some of the losses that stripped off a quarter of its market value the day before.

* European shares erased their early gains as a 50-basis-point ECB interest rate hike amid the crisis surrounding Credit Suisse and U.S. lenders deepened investors' concerns over the banking sector.

* Wall Street's main indexes opened lower after shares of First Republic Bank crashed amid fears of a banking crisis, while a large interest rate hike by the ECB also dented sentiment.

The Dow Jones Industrial Average fell 0.15%, The S&P 500 opened 0.33% lower and the Nasdaq Composite dropped 0.43% at the opening bell. * Euro zone government bond yields edged higher with investors expecting the ECB to slow down its monetary tightening while assessing financial stability risks following Thursday's 50 bps hike.

QUOTES

* "The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area," the ECB said in a statement. "The euro area banking sector is resilient, with strong capital and liquidity positions," it added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)