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UBS aims to retain Credit Suisse staff, Jeffrey Gundlach joins the Powell-is-wrong chorus and Terraform Labs co-founder Do Kwon is charged b [View in browser]( [Bloomberg]( UBS aims to retain Credit Suisse staff, Jeffrey Gundlach joins the Powell-is-wrong chorus and Terraform Labs co-founder Do Kwon is charged by US prosecutors.  — [David Goodman]( UBS retention UBS wealth boss Iqbal Khan told Credit Suisse staff in Asia that he’s [working on retention measures](including compensation, according to people familiar with the matter, as the bank seeks to prevent an exodus of top talent. Khan, alongside Francesco De Ferrari, Credit Suisse’s wealth management chief, made the comments at a town-hall in Hong Kong to Asia Pacific staff on Friday, said the people, asking not be identified as the event is private. They were joined by UBS senior Asia executives including Amy Lo, co-head of Asia-Pacific wealth, and Asia-Pacific President Edmund Koh, said the people. Gundlach warning Markets are signaling the Federal Reserve is wrong when it talks about the prospect for further interest-rate hikes, with bond investor Jeffrey Gundlach [among the latest]( to predict cuts instead as the risk of recession grows. Gundlach, DoubleLine Capital’s chief investment officer, sees the Fed cutting rates “substantially” soon, according to posts on Twitter. He also warned of “red alert recession signals” emanating from the US yield curve. Kwon charge Terraform Labs co-founder Do Kwon was [charged by US prosecutors](with orchestrating a yearslong cryptocurrency fraud that wiped out at least $40 billion in market value. His indictment Thursday evening by the US attorney’s office in Manhattan capped a dramatic day that began with the news that Kwon, already a fugitive from charges in his native South Korea, had been arrested in Montenegro. It’s unclear if the arrest was at the request of US authorities, but federal prosecutors said they would seek his extradition to New York. Stocks plunge Stocks tumbled, led lower by banks, as investors [continued to show concern]( over the stability of the financial sector. The Stoxx Europe 600 Index slid for a second day as a gauge of banks wiped out the last of its gains from the start of the week. Deutsche Bank AG slumped 12%, the most in nine months. US equity futures dropped. Meanwhile, Treasury yields fell and were well on course for a third day of declines. German and UK government bonds rallied and the dollar strengthened Coming up… The US reports durable goods data early this morning, before the first readings of the March PMIs give a up-to-date insight into the health of the economy. St. Louis Fed President James Bullard is also due to speak at an event, before the pace of Fed appearances picks up again next week. What we’ve been reading Here’s what caught our eye over the past 24 hours: - UK reports suggest[consumers are defying inflation]( to splash the cash. - Jack Dorsey’s wealth [tumbles $526 million](after Hindenburg short - Yellen says US prepared for [additional deposit actions]( if needed - Powell finds he’s stuck between his [Volcker and Bernanke moments](. - Banks draw on Fed for $164 billion for [second straight week](. - TikTok CEO’s careful testimony got him no closer [to a resolution](. - As the final season of Succession nears, [who might ultimately triumph](? And finally, here’s what Katie’s interested in this morning A fun detail of the past two weeks: the banking system seized during the Federal Reserve’s blackout period ahead of its March meeting. On Wednesday, the silence finally broke. “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 statement released at 2pm Eastern read. Fed chief Jerome Powell elaborated about 30 minutes later in the press conference: “Such a tightening and financial conditions would work in the same direction as rate tightening in principle. As a matter of fact, you can think of it as being the equivalent of a rate hike. Or perhaps more than that, of course, it’s not possible to make that assessment today with any precision whatsoever.” Even if the contagion among US banks is truly contained, the lasting damage could be psychological. Banks may prioritize shoring up their finances over lending, fueling a credit crunch that could finally help stamp out stubbornly high inflation. That would be good for central bankers, bad for consumers and businesses, and a potential return to the pandemic playbook for stock investors: buy big companies with stable cash flows and fortress balance sheets. “Our general view is that credit availability is going to be coming down and we see some of the internals of the stock market confirming that. Small-, mid-cap indices are underperforming, which are obviously the most susceptible to that kind of a constraint on capital availability,” Morgan Stanley’s Michael Wilson told Romaine Bostick and me on Bloomberg Television. “The large-caps that have stability in earnings, clean balance sheets, aren’t going to need capital anytime soon.” Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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