Credit Suisse

Switzerland's biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic ...

It had more than 50,000 employees at the end of 2022. It was worth just $8 billion at the end of last week. The global headquarters of UBS and Credit Suisse are just 300 yards apart in Zurich but the banks’ fortunes have been on very different paths recently. Shares in the 167-year-old bank fell 25% over the week, money poured from investment funds it manages and at one point account holders were withdrawing deposits of more than $10 billion per day, the Financial Times reported. “UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement. In 2022, it recorded its worst loss since the global financial crisis.

UBS will buy rival Credit Suisse for more than $2 billion in a deal brokered by Swiss officials to try and prevent a banking crisis.

In the last two years alone, the bank's stock has fallen by more than 80%. Panicked investors and jittery depositors pulled billions out of the long-troubled Credit Suisse in recent days, leading to worries the bank could become insolvent if emergency measures were not taken. Under the deal, UBS Group AG will buy Credit Suisse for more than $3 billion in an all stock deal.

An uncontrolled collapse of Credit Suisse would lead to "incalculable consequences for the country," said Swiss president Alain Berset.

That fanned fears that Credit Suisse would be the next domino to fall. As a result, their downfall does not necessarily signal the start of a financial crisis similar to what occurred in 2008. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system." The stock has seen a long downward slide: It traded at more than 80 francs in 2007. This means regulators believe its uncontrolled failure would lead to ripples throughout the financial system not unlike the collapse of Lehman Brothers 15 years ago. banks last week that spurred a frantic, broad response from the U.S.

UBS agreed to buy its embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion) Sunday, with Swiss regulators playing a key part in the deal ...

The losses came despite a new loan of up to 50 billion Swiss francs ($54 billion) granted from the Swiss central bank last week, in an effort to halt the slide and restore confidence in the bank. “The capital and liquidity positions of the U.S. Credit Suisse Chairman Axel Lehmann said in the press conference that the financial instability brought about by the collapsed U.S. reeled from the collapse of Silicon Valley Bank and Signature Bank. The Swiss government also granted a guarantee to assume losses up to 9 billion Swiss francs from certain assets over a preset threshold “in order to reduce any risks for UBS,” said a separate government statement. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. Bringing the two rivals together was not without its struggles, but pressure to stave off a systemic crisis won out in the end. It is also far more globally interconnected, with multiple international subsidiaries — making an orderly management of Credit Suisse’s situation even more important. banking system are strong, and the U.S. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure,” said UBS Chairman Colm Kelleher in a statement. “This is absolutely essential to the financial structure of Switzerland and ... “We are committed to making this deal a great success.

El banco más grande de Suiza, UBS, acordó comprar su rival en crisis Credit Suisse en un acuerdo de rescate de emergencia destinado a detener el pánico en ...

Tenía un valor de solo US$ 8.000 millones a fines de la semana pasada. Las oficinas centrales mundiales de UBS y Credit Suisse están a solo 300 metros de distancia en Zúrich, pero la fortuna de los bancos ha estado en caminos muy diferentes recientemente. Un préstamo de emergencia del Banco Nacional Suizo no logró detener la hemorragia. El Credit Suisse llevaba años perdiendo la confianza de inversores y clientes. “UBS anunció hoy la adquisición de Credit Suisse”, dijo el Banco Nacional Suizo en un comunicado. Pero la confianza se derrumbó la semana pasada después de que reconoció una "debilidad material" en su contabilidad en pleno colapso del Silicon Valley Bank y el Signature Bank, lo que generó temor en instituciones más débiles en un momento en que las altas tasas de interés han socavado el valor de algunos activos financieros.

Los líderes suizos realizarán una conferencia de prensa el domingo en la noche tras reportes de que el banco UBS está en negociaciones para comprar a su ...

Las acciones de Credit Suisse y otros bancos se desplomaron esta semana luego que el colapso de dos bancos en Estados Unidos desencadenara preocupaciones sobre otras posibles instituciones en problemas dentro del sistema financiero global. GINEBRA (AP) — El banco suizo UBS comprará a su rival más pequeño Credit Suisse por 3.250 millones de dólares en un acuerdo orquestado por los reguladores a fin de evitar mayor turbulencia en los mercados financieros mundiales. Las autoridades suizas presionaron para que UBS adquiriera a su rival de menor tamaño después que fracasara el intento de Credit Suisse de pedir prestados 50.000 millones de francos (54.000 millones de dólares) para tranquilizar a los inversionistas y clientes del banco.

El banco suizo UBS está ultimando la compra de la otra entidad bancaria más grande del país, Credit Suisse, con una oferta de hasta 1.000 millones de ...

Credit Suisse, que cerró el viernes con un valor de mercado de unos 7.400 millones de francos (8.000 millones de dólares), cree que la oferta es demasiado baja y perjudicaría a los accionistas y empleados que tienen acciones aplazadas, según ha informado Bloomberg citando a personas con conocimiento del asunto. El cambio en la legislación permitiría zanjar la compra sin necesidad del voto de los accionistas en un esfuerzo para salvar a la entidad de la crisis en la que se ha visto involucrada en los últimos días, marcada por el pánico de los inversores y solo amortiguada temporalmente por una inyección de liquidez del Banco Central suizo. Este acuerdo, según entienden hasta cuatro fuentes próximas a las negociaciones, podría tener lugar incluso este domingo por la noche a un precio de 0,25 francos suizos por acción, muy por debajo del precio de cierre del viernes de Credit Suisse (1,86 francos suizos).

La operación está siendo discutida entre el Gobierno suizo, el Banco Nacional y los reguladores según el periódico especializado en economía.

Los analistas habían sugerido que el negocio alpino de Credit Suisse podría fraccionarse o cotizar por separado en bolsa en caso de que UBS se hiciera con el control. El viernes se complicó la situación en bolsa a pesar de que los reguladores del país aprobaran un préstamo de más de 50 000 millones de euros para amortiguar el golpe. En Suiza, la banca minorista de Credit Suisse cuenta con 95 sucursales, mientras que UBS tiene unas 200.

Creates leading global wealth manager with USD 5 trillion of invested assets across the Group · Extends UBS lead in Swiss home market · UBS strategy unchanged, ...

Under the terms of the all-share transaction, Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of CHF 3 billion. The combined businesses will be a leading asset manager in Europe, with invested assets of more than USD 1.5 trillion. UBS Chief Executive Officer Ralph Hamers said: “Bringing UBS and Credit Suisse together will build on UBS’s strengths and further enhance our ability to serve our clients globally and deepen our best-in-class capabilities. It will further strengthen UBS’s position as the leading Swiss-based global wealth manager with more than USD 3.4 trillion in invested assets on a combined basis, operating in the most attractive growth markets. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure. The combination is expected to create a business with more than USD 5 trillion in total invested assets and sustainable value opportunities.

Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain ...

That fanned fears that Credit Suisse would be the next domino to fall. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.” Yet the move did not appear to be enough to stem an outflow of deposits, according to news reports. While smaller than its Swiss rival UBS, Credit Suisse still wields considerable influence, with $1.4 trillion assets under management. This means regulators believe its uncontrolled failure would lead to ripples throughout the financial system not unlike the collapse of Lehman Brothers 15 years ago. The stock has seen a long downward slide: It traded at more than 80 francs in 2007.

BERNA, Suiza (AP) — El banco suizo UBS comprará a su rival más pequeño Credit Suisse en un esfuerzo por evitar mayor turbulencia en los mercados financieros ...

Aun así, ha reinado el nerviosismo en los mercados financieros mundiales desde que las acciones de Credit Suisse empezaron a caer la semana pasada. Las acciones han tenido un largo descenso: estaban a más de 80 francos en 2007. Como resultado, su colapso no necesariamente es presagio de una crisis financiera como la ocurrida en 2008. Eso quiere decir que los reguladores creen que su colapso descontrolado causaría repercusiones en todo el sistema financiero similares a las del colapso de Lehman Brothers hace 15 años. La combinación de los dos bancos más grandes de Suiza – cuyas historias se remontan a mediados del siglo XIX – es un golpe para la reputación de Suiza como centro financiero mundial y lo deja al borde de tener un solo banco importante. Berset, quien no especificó el monto del acuerdo, lo calificó de “uno de gran magnitud para la estabilidad de las finanzas internacionales.

UBS ha acordado comprar Credit Suisse por más de 2.000 millones de dólares (1.870 millones de euros), informó el domingo el Financial Times.

Su quiebra enviaría ondas de choque a través de todo el sector financiero mundial. Zúrich (Suiza) (AFP) – UBS ha acordado comprar Credit Suisse por más de 3.250 millones de dólares. Por su parte, el sindicato de empleados de los bancos suizos "exigió" el domingo que sus delegados participen en la negociación, teniendo en cuenta las "enormes" consecuencias de la operación en la plantilla. La negociación se centró el sábado en torno a las actividades de la banca de inversión, según la agencia financiera, y una de las hipótesis para salir de la crisis es que la compra sea parcial y deje fuera a esta división. Maltratado en Bolsa la semana pasada tras la decisión de su principal accionista de volver a la olla, Credit Suisse se sitúa entre los 30 bancos más importantes del mundo desde el punto de vista sistémico. Recientemente vapuleado en Bolsa, Credit Suisse se encuentra entre los 30 bancos más importantes del mundo desde un punto de vista sistémico.

Officials announced the takeover on Sunday, after shares of Credit Suisse plummeted last week despite a $54 billion loan from the Swiss National Bank.

That upheaval caused an automatic freeze in trading of shares of Credit Suisse on the Swiss market and significantly impacted shares of other large European banks, with some share prices falling by double-digits. banks' failures gave rise to fear and a lack of confidence among big investors, and it announced its plans to borrow up to 50 billion francs from the national bank on Thursday. On Friday, Credit Suisse's share price slipped 7% and ended the day at $2.01. [in the wake of Silicon Valley Bank and Signature Bank's failures](https://www.cbsnews.com/news/silicon-valley-bank-deposits-guaranteed-signature-bank-federal-reserve-fdic/), which happened less than two weeks ago ago and within days of each other. Keller-Sutter said the purchase "laid the foundations for greater stability both in Switzerland and internationally." All of the bank's current shareholders will receive one share of UBS for around 22 1/2 shares of Credit Suisse, according to the release. banks to shore up finances at institutions that became threatened in the turmoil. The banking giant UBS has agreed to purchase Credit Suisse, a smaller rival, Swiss authorities announced on Sunday. Bank each agreed to give $1 billion. banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, agreed to provide $30 billion in funding for First Republic Bank. Those four banks each agreed to contribute $5 billion, while Goldman Sachs and Morgan Stanley each agreed to give $2.5 billion and BNY Mellon, PNC Bank, State Street, Truist and U.S. "This takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank," the Swiss National Bank said in a

Among the funds to bet on the rescue deal were two that specialize in buying the bonds of companies on the brink of bankruptcy.

Stock investors are at the bottom of that repayment list and usually lose all their money ahead of other investors. Because of the risks involved, the banks quoted prices to buy and sell that were unusually far apart, protecting them from sharp changes in prices. On Sunday, the Swiss Financial Market Supervisory Authority, or Finma, approved a deal for UBS to take over its smaller rival. This is a special type of debt issued by banks that can be converted to equity capital should they run into trouble. The first is in Credit Suisse’s ordinary bonds: debt that the bank borrowed at a fixed rate of interest to be paid back over a specified period of time. Traders said that on Sunday some bonds had already risen sharply following the deal, now that the immediate threat of Credit Suisse reneging on its debts has passed.

They're called contingent convertible bonds, or CoCos — and are often described as high-yield investments with a hand grenade attached.

Prices on Credit Suisse’s CoCos had flip-flopped in the hours leading up to the announcement of a deal with UBS as traders weighed two contrasting scenarios: either the regulator would nationalize part or the whole bank, possibly writing off Credit Suisse’s AT1 bonds entirely, or a UBS buyout with potentially no losses for bondholders. Given that all of Credit Suisse’s outstanding CoCos are writedown ones rather than the type that can be converted in to equity, the risk of losses was always there. In the end, it ended up being a bit of both, after the government stepped in to facilitate the merger. Yields on Credit Suisse’s CoCos had surged to distressed levels in recent days. And that’s a big problem for a market that would expect holders to be paid before shareholders. However, under the terms of the government-brokered deal, Credit Suisse shareholders are set to receive 3 billion francs. In simple terms, banks need to meet a minimum requirement for the amount of their own funds and eligible liabilities, more commonly known as MREL, to support an effective resolution in the event of a collapse. Because of the extraordinary government support, it will trigger a “complete write-down” of the bank’s AT1 bonds in order to increase core capital, Swiss financial regulator FINMA said in a statement on its website. They make up part of a buffer of debt and equity that’s intended to prevent taxpayers from having to shoulder the bill for a bank’s collapse. Its biggest CoCos were denominated in US dollars — it had a $2b perpetual note that could have been called in July and a $2.25b note with a first call in December. The Swiss lender’s holding company had 13 CoCos outstanding worth a combined $17.3 billion, issued in Swiss francs, US dollars and Singapore dollars, according to data compiled by Bloomberg. The vaporizing of Credit Suisse’s CoCo debt will strengthen the balance sheet of the newly combined bank — but could spell disaster for the wider CoCo market.

La noticia sigue al colapso de dos bancos estadounidenses la semana pasada, Silicon Valley Bank y Signature Bank.

En particular, Credit Suisse no necesitó la asistencia del gobierno en 2008 durante la crisis financiera, mientras que UBS sí. Eso avivó los temores de que Credit Suisse fuera el próximo dominó en caer. La firma cuenta con importantes mesas de negociación en todo el mundo, atiende a los ricos y adinerados a través de su negocio de gestión de patrimonio y es un importante asesor para empresas globales en fusiones y adquisiciones. Como resultado, su caída no necesariamente señala el comienzo de una crisis financiera similar a la que ocurrió en 2008. Aún así, los mercados financieros globales han estado nerviosos desde que el precio de las acciones de Credit Suisse comenzó a caer esta semana. Un colapso descontrolado de Credit Suisse traería consecuencias incalculables para el país y el sistema financiero internacional”.

El Gobierno suizo ha anunciado la convocatoria de una rueda de prensa 'importante' para la tarde de este mismo domingo. No se han dado más detalles sobre su ...

El Ministerio de Finanzas suizo ha declinado hacer comentarios. No se han dado más detalles sobre su contenido, pero todo apunta a una decisión sobre la posible nacionalización o compra del banco Credit Suisse. La radiotelevisión pública se ha hecho también eco del anuncio, aunque ningún medio concreta horario de la cita.

El banco suizo UBS comprará a su rival más pequeño Credit Suisse en un esfuerzo por evitar mayor turbulencia en los mercados financieros mundiales, ...

Aun así, ha reinado el nerviosismo en los mercados financieros mundiales desde que las acciones de Credit Suisse empezaron a caer la semana pasada. Las acciones han tenido un largo descenso: estaban a más de 80 francos en 2007. Eso quiere decir que los reguladores creen que su colapso descontrolado causaría repercusiones en todo el sistema financiero similares a las del colapso de Lehman Brothers hace 15 años. Como resultado, su colapso no necesariamente es presagio de una crisis financiera como la ocurrida en 2008. La combinación de los dos bancos más grandes de Suiza – cuyas historias se remontan a mediados del siglo XIX – es un golpe para la reputación de Suiza como centro financiero mundial y lo deja al borde de tener un solo banco importante. Afirmó que la combinación creará una entidad con activos invertidos de 5 billones de dólares.

El banco suizo UBS habría aceptado comprar a su princial rival nacional, Credit Suisse, por 2.000 millones de dólares (1.872 millones de euros) para evitar ...

Ya el domingo se reunió otra vez el Gobierno, que ha convocado a la prensa a una "importante" rueda de prensa para este mismo domingo. Por ello el Banco Nacional Suizo acudió al rescate proporcionando hasta 50.000 millones de francos en efectivo. El acuerdo se podría firmar este mismo domingo por la noche, antes de que abran los mercados asiáticos.

The bank's agreement to be bought by rival UBS marks the end of 167 years as an independent institution.

H&R Block Coupon Code](https://www.wsj.com/coupons/hrblock) [Save up to $15 with TurboTax coupon March 2023](https://www.wsj.com/coupons/turbotax) The agreement marks the end of 167 years as an independent institution, a humbling comedown for a bank that once went toe-to-toe with U.S.

As the government-preferred buyer, UBS had a strong hand and drove a very hard deal.

Despite the risks, UBS is getting a bank that was not finally bought down by bad assets but by a wave of liquidity fears rolling around the world. The faster UBS looks to sell assets out of Credit Suisse’s investment bank, the greater the losses it would have to take. Previously, he was a reporter for the Wall Street Journal and the Financial Times. The cost to Credit Suisse stock and junior bondholders and to the Swiss government covers a lot of potential asset losses. But the bigger dangers of letting Credit Suisse suffer an accelerating run were clear: This takeover ought to contain the chaos. However, UBS might also view a lot of the capital Credit Suisse carries for operational risks as being attached to its investment bank. UBS is protected by having wiped out most of Credit Suisse’s equity and all its junior bonds, along with the government guarantee. Acquiring the domestic Swiss bank will significantly increase the market share of the combined group and it could lose clients there too. Based on accounts from the end of 2022, the deal increases UBS’s total assets by 52% to about 1.6 trillion francs ($1.7 trillion), but it increases risk-weighted assets by 78% to 570 billion francs. UBS didn’t want the management distraction or the risks and responsibilities that come from such a massive takeover. UBS Group AG is the reluctant rescuer even at a bargain price of roughly $3.25 billion, paid in UBS shares. Credit Suisse Group AG could not afford to go into the opening of Asian markets with its own national authorities having questioned its viability.

UBS Group emerged as Switzerland's one and only global bank with a state-backed rescue of its smaller peer Credit Suisse, a risky bet that makes the Swiss ...

UBS also gets to keep the jewel in Credit Suisse’s crown, the domestic bank. Credit Suisse had a market value of about $8 billion at the close on Friday. Late last year, speculation that the bank would go bust drove clients to pull tens of billions, sealing its fate. If UBS is not required to do an IPO of it, it could make sense for them to keep it, there are lots of synergies." It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just metres apart. UBS is also taking out a big competitor in securities trading. UBS earned $7.6 billion in profit in 2022, while Credit Suisse lost $7.9 billion. The failure of two U.S. The two lenders have been pillars of global finance for decades. Switzerland is pledging more than 160 billion francs ($173 billion) in loans and guarantees to underpin the new group, guarding against further risks undermining the lender. Following the 2008 financial crash, politicians pledged to never bail out banks again. "Under normal circumstances, I would say it is an absolutely fantastic deal for UBS," said Johann Scholtz, equity analyst at Morningstar, covering European Banks, Amsterdam.

We've watched the bank lurch from scandal to scandal for so long that it's hard to recall all of them at this point.”

Executives were already under fire for failing to protect the bank and wealthy clients from the collapse of a $10 billion suite of funds it ran with now-disgraced financier Lex Greensill. As part of an investigation prompted by the Khan episode, the Swiss banking regulator in October 2021 uncovered five additional cases of surveillance from 2016 to 2019. The once-lucrative industry had imploded, and one of the most problematic deals was a $457 million loan for the leveraged buyout of Ohio Mattress Co. The takeover was part of an aggressive growth strategy, including acquisitions of Swiss rivals, and the complexity kept growing. “Unfortunately, the loss of confidence from the markets and customers was no longer able to be halted.” “In Zurich, we’ve had a ring-side seat to this spectacular fiasco in slow-motion,” said Matthew Ruesch, founder and managing partner of Broad Creek Capital, a family office. The combined assets of UBS and Credit Suisse are roughly double the size of Switzerland’s gross domestic product, and Sunday newspapers from tabloids to broadsheets were filled with stories about the looming demise of a national icon. It tended the fortunes of Arab royals and Russian oligarchs and tilted at the giants of Wall Street. In recent years, the bank suffered a revolving door of senior management, with each leadership change putting more pressure on performance. With the country’s banking sector at risk, Swiss authorities stepped in to push UBS to become a reluctant white knight. The government-brokered sale marks the Swiss bank’s final fall from grace, succumbing to a crisis of confidence that threatened to spread to global financial markets. After top shareholder Saudi National Bank told Bloomberg Television on Wednesday that it would “ [absolutely not](https://www.bloomberg.com/news/articles/2023-03-15/credit-suisse-top-shareholder-rules-out-more-assistance-to-bank-lf9gfhbr)” invest more in the lender, a rout was on.

The former European banking flagship will be bought for the modest sum of $3 billion by its eternal rival and compatriot UBS.

Asian financial authorities say Swiss lender's takeover not likely to affect stability of local banks.

China’s blue-chip CSI300 and Shanghai Composite Index made gains, as new monetary-easing measures by Beijing helped to offset the concerns about global banking. “The exposures of the local banking sector to Credit Suisse are insignificant,” HKMA said in a statement. “The Hong Kong banking sector is resilient with strong capital and liquidity positions.

Swiss regulators announced that UBS, Switzerland's largest bank, would take over the troubled Credit Suisse.

But in this case, owners of stock in Credit Suisse received one UBS share for every 22.48 shares they owned, according to the terms of the deal. Some investors said the deal valued Credit Suisse so cheaply that it could prompt a reassessment of the value of other banks. The UBS acquisition of Credit Suisse, which was brokered by the Swiss authorities, came after another weekend of frenzied activity by U.S. The $3.2 billion acquisition by UBS of Credit Suisse, Switzerland’s oldest bank, was announced on Sunday by the Swiss Financial Markets Supervisory Authority. The central bank is expected to raise interest rates again, turning the screws on an economy already showing signs of slipping from a year of rapid rate rises. A number of small lenders in the United States came under renewed pressure last week.

Asia Pacific markets edged slightly lower on Monday morning as investors reacted to news of a Credit Suisse bailout by its bigger rival UBS.

The Dow [(INDU)](https://money.cnn.com/data/markets/dow/?source=story_quote_link) fell 1.2%, and the S&P 500 [(SPX)](https://money.cnn.com/data/markets/sandp/?source=story_quote_link) shed 1.1%. The Nasdaq Composite [(COMP)](https://money.cnn.com/data/markets/nasdaq/?source=story_quote_link) dipped 0.7%. US stock futures rose on Sunday night following the news. “Their overall exposures to the Hong Kong market are not significant.” The S&P/ASX 200 in Australia slipped 0.8%. [(N225)](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link) index fell 0.7%, while South Korea’s Kospi [(KOSPI)](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link) was flat in morning trade. [another day of losses](https://www.cnn.com/business/live-news/stock-market-credit-suisse-svb-banking-collapse-03-17-23/h_eee0672e6f5293070c4a5c89702e2049) on Wall Street on Friday, as investors continued to fret over the health of the global banking sector. [told a conference](https://www.rba.gov.au/speeches/2023/sp-ag-2023-03-20.html) Monday. [(UBS)](https://money.cnn.com/quote/quote.html?symb=UBS&source=story_quote_link), agreed to buy Credit Suisse [(CS)](https://money.cnn.com/quote/quote.html?symb=CS&source=story_quote_link) in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month. [(HSI)](https://money.cnn.com/data/world_markets/hang_seng/?source=story_quote_link) tumbled 1.5% at its opening. [a statement](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230320-3/), adding that the assets of Credit Suisse’s local branch were worth approximately 100 billion Hong Kong dollars ($12.7 billion) or “less than 0.5% of the total assets of the Hong Kong banking sector.” [Credit Suisse bailout](https://www.cnn.com/2023/03/19/business/credit-suisse-ubs-rescue/index.html) by its bigger rival UBS.

Banking stocks tumbled on Monday as initial relief over a historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group gave way to ...

"I know that there must be still questions that we have not been able to answer," he said. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said. The MSCI index for financial stocks in Asia ex-Japan Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. regional banks and moral hazard. [(FRC.N)](https://www.reuters.com/companies/FRC.N), an institution rocked by the failures of Silicon Valley and Signature Bank [(SBNY.O)](https://www.reuters.com/companies/SBNY.O). The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. [only global bank](/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) and the Swiss economy more dependent on a single lender. [according to a memo](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to staff seen by Reuters. [moving some assets](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to another bank if concentration was a concern. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) [will pay](/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-16/) 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) and assume up to $5.4 billion in losses. [angering some of the holders](/business/finance/credit-suisse-writes-down-17-bln-bonds-zero-angering-holders-2023-03-19/) of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

European markets are heading for a fall at Monday's open, with regional markets lacking direction at the start of the new trading week.

stock futures](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html) were mixed. London time after the [latter agreed to an emergency takeover](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) of its embattled rival. The combined bank will have $5 trillion of invested assets, according to UBS. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. [Credit Suisse](/quotes/CSG.N-CH/) shares were down 61.95% in pre-market trade via private bank Julius Baer, Reuters reported at 8:14 a.m. [Asia-Pacific markets largely fell on Monday](https://www.cnbc.com/2023/03/20/asia-markets-ubs-credit-suisse-china-loan-prime-rates.html), with eyes firmly on the European banking situation. CET to suspend trading in its shares. [UBS](https://www.cnbc.com/quotes/) [takeover](https://www.cnbc.com/2023/03/20/ubs-shares-tumble-after-emergency-rescue-of-rival-credit-suisse.html) of [Credit Suisse](/quotes/CSG.N-CH/). Credit Suisse has until the Swiss market open at 9:00 a.m. Following the emergency rescue, the combined bank will have $5 trillion of invested assets, according to UBS. [UBS](/quotes/UBS/) finalized an [agreement](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) to buy its rival [Credit Suisse](/quotes/CS/) for $3.2 billion.

UBS AG is asking the Swiss government to cover about $6 billion in costs if it were to buy rival Credit Suisse, a person with knowledge of the talks said, ...

* * U.S. * Bank panic raises * Berkshire Hathaway Inc's * A takeover of Credit Suisse

The deal, backed by the Swiss government, follows weekend talks aimed at preventing its collapse.

The acid test as to whether this Swiss rescue has calmed nerves in the financial world will be when financial markets open on Monday - which is why it was so important to get this done on Sunday night. Credit Suisse has become the latest and most important casualty of a crisis of confidence that has already seen the failure of two mid-sized US banks and an emergency industry whip-round for another. That has spooked investors and seen the share prices of all banks fall with those considered weakest hit hardest. The Bank of England said it welcomed the "comprehensive set of actions" set out by the Swiss authorities. The Bank of England said it welcomed the "comprehensive set of actions". The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.

UBS Chairman Colm Kelleher said the acquisition was “attractive” for UBS shareholders, but clarified that, “as far as Credit Suisse is concerned, this is an emergency rescue.”.

The size of Credit Suisse was a concern for the banking system, as was its global footprint given its multiple international subsidiaries. This could set in train renewed jitters about the health of banks." "Acquiring Credit Suisse's capabilities in wealth, asset management and Swiss universal banking will augment UBS's strategy of growing its capital-light businesses." The bank's Chairman Colm Kelleher said the acquisition was "attractive" for UBS shareholders but clarified that "as far as Credit Suisse is concerned, this is an emergency rescue." Credit Suisse shares collapsed by 60% at around 9:05 a.m. London time (5:05 a.m.

Falling prices in Asia and Europe drag down FTSE by 1.5% as UBS plunges 12%

“Focus is shifting to the implications of high-risk bond holders in banks, after holders of more risky Credit Suisse debt saw their investment wiped out. “In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier One [AT1] be required to be written down. Bank of East Asia fell 3.5%. [HSBC](https://www.theguardian.com/business/hsbcholdings) and Standard Chartered tumbled in the Asian stock market as details of UBS’s $3.2bn (£2.65bn) “emergency takeover” of Credit Suisse rattled global investors. [Banking](https://www.theguardian.com/business/banking) Authority and ECB Banking Supervision said they welcome the “comprehensive set of actions taken yesterday by the Swiss authorities”. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) deal hasn’t changed their position on the hierarchy of debt when a bank fails.

GENEVA (AP) — Shares of Credit Suisse plunged 60.5% in early trading Monday after the announcement that banking giant UBS would buy its troubled rival for ...

government](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) to prevent further panic. banks](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) last week that spurred [a frantic, broad](https://apnews.com/article/silicon-valley-bank-failure-deposits-fdic-8011ea377d8f9941032790ce1d704c5a) response from [the U.S. She reiterated that the European banking sector is resilient, with strong financial reserves and plenty of ready cash. “Today is one of the most significant days in European banking since 2008, with far-reaching repercussions for the industry,” said Max Georgiou, an analyst at Third Bridge. [50 billion francs](https://apnews.com/article/credit-suisse-banks-svb-shares-ecb-lagarde-94585aebadbf67f9a2307d3560ce502c) ($54 billion) failed to reassure investors and the bank’s customers. As part of the deal, approximately 16 billion francs ($17.3 billion) in Credit Suisse bonds will be wiped out. He said the combined group would create a wealth manager with over $5 trillion in total invested assets. announced late Sunday that New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a [$2.7 billion deal](https://apnews.com/article/signature-fdic-failure-new-york-community-bank-3c820646cc6574439fa158095594505e). [Markets remained jittery](https://apnews.com/article/stocks-shares-markets-economy-suisse-ubs-036b8fe51eb1f275f1e743a49115b493) Monday despite the best efforts of regulators to restore calm. Shares of Credit Suisse and other banks plunged last week after [the failure of two banks in the U.S.](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) raised questions about other potentially weak global financial institutions. The bank did weather the 2008 financial crisis without assistance, unlike UBS. Market benchmarks in Frankfurt and Paris opened down more than 1%, with European banking stocks dropping more than 2%.

Stocks were volatile but moderating to start a new week as sentiment over the health of banks was shaken after Credit Suisse was taken over in a rescue deal ...

tech lenders, and a loss of confidence in Credit Suisse after a major shareholder ruled out putting in more capital, we could well find that we’re at or close to a rate hike peak,” said Michael Hewson, an analyst at broker CMC Markets. While the demise of Credit Suisse looks more linked to confidence over management than portfolio losses—an unintended consequence of higher interest rates that took down Silicon Valley Bank—investors remain focused on monetary policy implications.\n\nThe Fed’s policy-setting committee heads into its next meeting on March 21-22, and traders have moved to rapidly price in a more accommodative stance from the central bank amid the bank panic. Futures tracking all three indexes were previously firmly in the red.\n\nOverseas, London’s FTSE 100 shed 0.1%, after previously trading down more than 1%, while Tokyo’s Nikkei 225 finished 1.4% lower.\n\nA crisis of confidence across the banking sector—which has punctuated investor sentiment since the collapse of Silicon Valley Bank on March 10—took a major global turn over the weekend with the emergency acquisition of Credit Suisse (ticker: CS) by rival UBS (UBS).\n\n“Credit Suisse was on life support and Swiss authorities believed only a full transplant of the bank’s divisions into UBS would restore stability to the banking system,” said Susannah Streeter, an analyst at broker Hargreaves Lansdown.

Credit Suisse's largest shareholder confirmed to CNBC that it had suffered a loss of around 80% on its investment.

1.7% of SNB's investments portfolio," the Saudi National Bank said in a statement. Saudi National Bank chairman Ammar Al Khudiary on Wednesday was asked by Bloomberg if it would increase its stake in the troubled Swiss lender. The messy fallout, which spilled over across the entire banking sector, has ruptured market confidence and stoked fears of another global banking crisis. Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Shares of the lender were up 0.58% on Monday at 9:30 a.m. His comments ultimately failed to stem the bank's continued rout. - Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Norway's sovereign wealth fund, Norges Bank Investment Management, is also a major shareholder. Shares of the lender were up 0.58% on Monday at 9:20 a.m. QIA did not reply to a request for further details. The significant discount comes as regulators try to shore up the global banking system. Shares of UBS, Switzerland's largest bank, traded down 10.5% at 9:28 a.m.

Oil prices and global shares fell after UBS unveiled plans to buy its struggling Swiss rival Credit Suisse for $3.2 billion over the weekend.

[plans to buy](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) its beleaguered Swiss rival Credit Suisse on Sunday. Asian markets also responded negatively to the news of UBS’ acquisition. In premarket trading early Monday morning, Wells Fargo and JPMorgan Chase were down more than 1% and Goldman Sachs, Citigroup and Bank of America between 0.4% and 0.6%. Credit Suisse bondholders are likely to be angry following the deal, as their investments are likely to be From market close on Friday, all were down between 3% and 4% on Monday morning. Its position grew terminal last week after its delayed annual report acknowledged “material weaknesses” in financial reporting and sent [shares](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) into freefall. [UBS Buying Rival Credit Suisse In $3.2 Billion Rescue Deal](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) (Forbes) [What's Happening With Credit Suisse, Explained: Embattled Bank Rattles Stock Market As Banking Crisis Deepens](https://www.forbes.com/sites/ariannajohnson/2023/03/16/whats-happening-with-credit-suisse-explained-embattled-bank-rattles-stock-market-as-banking-crisis-deepens/?sh=2560db1135a2) (Forbes) Credit Suisse’s downfall comes at a poor time for global financial markets, which are already reeling from the recent failure of two U.S. The $3.2 billion deal, partly an effort to calm roiling financial markets, is a huge discount given Credit Suisse’s market valuation and heralds the creation of a new Swiss banking behemoth and the start of a new [era](https://www.reuters.com/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) for lending in Switzerland. [wiped out](https://www.ft.com/content/d1ae9a54-c4a7-4742-8b2d-afff549f4f95), a move that could exacerbate market worries. Years of unrest following a string of controversies—including [charges](https://www.theguardian.com/news/2022/feb/21/tax-timeline-credit-suisse-scandals) of money laundering, sanctions breaches, corruption, fraud and tax evasion, [links](https://www.forbes.com/sites/isabeltogoh/2021/11/04/credit-suisse-burned-by-archegos-and-greensill-scandals-shifts-focus-to-wealth-management-in-overhaul/?sh=2016c9052488) with collapsed firms Archegos and Greensill Capital and [revelations](https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians) it had [spied](https://www.forbes.com/sites/isabeltogoh/2019/10/01/credit-suisse-executive-resigns-over-spy-scandal-that-has-rocked-switzerlands-banks/?sh=63fb620c137e) on its own staff—eroded that position. [streak](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) that saw shares hit an all-time low last week.

Additional Tier 1 debt holders wiped out · Assumption had been AT1 holders would outrank equity holders · Approach roils wider bank bond and stock markets · C ...

For BBB-rated European banks [(.MEREBB4)](https://www.reuters.com/quote/.MEREBB4), the spread is up 50 bps in a month to 174. "If you take 10% yield on something when the government security is 4%, then you're earning a lot of extra yield for a reason. I strongly believe if SNB had not been sleeping at wheel they would have forced earlier restructuring, sought more liquidity and encouraged them to look at asset sales …it’s just they wanted a Swiss solution,” said Rupak Ghose, a financial industry strategist and former Credit Suisse employee. Credit spreads on banks should widen further, analysts said. But he assumes he's above equity," Steven Major, global head of fixed income research at HSBC, said on the phone from Melbourne. It was clear in the prospectus but people hadn’t read it. Swap spreads on U.S. and around the world." [(GS.N)](https://www.reuters.com/companies/GS.N) traders were preparing to take bids on [claims](/business/finance/goldman-sachs-prepares-claims-trading-wiped-out-credit-suisse-debt-bloomberg-2023-03-20/) against Credit Suisse AT1 bonds, Bloomberg News reported on Sunday, citing people familiar with the matter. MSCI's world bank stock index [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) [rescue](/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) merger with UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) have said 16 billion Swiss francs ($17 billion) of its Additional Tier 1 (AT1) debt will be written down to zero. Yet in the case of Credit Suisse, however, the AT1 prospectus made clear that hybrid (AT1) holders would not recover any value.

Why it matters: The Swiss government literally changed the law to get the deal done, creating short-term stability for the global banking sector but long-term ...

The question now is if it sets a precedent for other countries to follow, and how investors would react to losing one of their most fundamental rights. What they're saying: "This feels like Russia in Zurich," says a source close to Credit Suisse. [agreed to buy](https://www.axios.com/2023/03/19/credit-suisse-buyout-banking-crisis-ubs) troubled Swiss banking rival Credit Suisse, in a $3.2 billion deal whose speed was [unthinkable](https://www.axios.com/2023/03/15/why-we-should-care-about-credit-suisses-problems) before [Silicon Valley Bank](https://www.axios.com/economy-business/svb-silicon-valley-bank)'s collapse.

Years of mismanagement and fears of a widening banking crisis felled the 167-year-old European investment giant.

Over the last few days, it has suffered [mass outflows](https://www.reuters.com/business/finance/credit-suisse-managed-funds-net-outflows-top-450-mln-morningstar-2023-03-17/)as problems mounted and bank sector concerns festered, pushing its stock to record lows. But the industry there as a whole doesn’t have a worryingly high uninsured deposit ratio or unrealized losses on 'held-to-maturity' securities in excess of capital." The Swiss National Bank will open a monetary tap for Credit Suisse for "substantial additional liquidity," the bank said. The merger is the latest attempt to arrest market volatility triggered by concerns about a worldwide banking panic. [Silicon Valley Bank's failure](https://www.axios.com/2023/03/14/biden-svb-stop-bank-runs). [financial institutions caught](https://www.axios.com/2023/03/16/first-republic-rescue-markets) in the crosshairs.

Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country's gross ...

UBS and Credit Suisse were both in a group of the 30 global systemically important banks watched closely by regulators. That loan is protected in the event of a default. Credit Suisse said last Wednesday it would take 50 billion francs from the scheme, which provides funding secured against collateral such as mortgages and securities. The third tranche of support allows Credit Suisse to draw on a further 100 billion francs of funding via a public liquidity backstop, which is explicitly guaranteed by the Swiss government. [announced on Sunday](/business/finance/ubs-take-over-credit-suisse-central-bank-2023-03-19/) that UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) had agreed to buy rival Swiss bank Credit Suisse [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) in a shotgun merger aimed at avoiding more market-shaking turmoil in global banking. ZURICH, March 20 (Reuters) - Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country's gross domestic product, as part of their merger to buffer Switzerland against global financial turmoil, documents outlining the deal show.

As early investor optimism about efforts to stem a banking crisis quickly evaporated, shares of Credit Suisse, UBS fell.

In a separate memo, the bank said that, as part of the takeover, if job cuts proved necessary it would be communicated to staff as per guidelines. The European Central Bank vowed to support eurozone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” in restoring calm. Credit Suisse shares slumped 62 percent in premarket trade to a new low while UBS lost 7.1 percent. “I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders,” Kelleher said. “I know that there must be still questions that we have not been able to answer,” he said. The MSCI index for financial stocks in Asia ex-Japan was down 1.3 percent.

Despite bold proclamations from Swiss authorities and central banks about a return to stability, the deal does not appear to have laid to rest concerns ...

"But in our view, it has become harder to assess the attractiveness of the current historically large spread pick-up provided by AT1 bonds vs. This could set in train renewed jitters about the health of banks." "This solves what I think is probably an idiosyncratic problem at Credit Suisse, but I'm not sure it's a firebreak big enough to stop the rot for the market," he said Monday. James Sym, head of equities at London-based investment manager River and Mercantile, told CNBC that the market was in "seek and destroy mode." "They are designed to impose permanent losses on bondholders or be converted into equity if a bank's capital ratios fall below a predetermined level, effectively propping up its balance sheet and allowing it to stay in business. The deal also includes support from the Swiss government, financial regulator FINMA, and the Swiss National Bank (SNB), which will offer a liquidity line of up to 100 billion Swiss francs, backed by a federal default guarantee. But as we discussed on Friday, we take comfort from the limited contagion from U.S. "Of course, we are mindful that the situation among U.S. The government will offer a loss guarantee of up to 9 billion Swiss francs, with UBS assuming the first 5 billion of potential losses. The U.S. hit us at the most unfavorable moment." bank has shifted back to an overweight allocation on European banks as a result.

Credit Suisse failed this weekend — or at least it would have, were it not too big to fail. Instead, Switzerland's banking regulators cobbled together an ...

Shareholders only own the sliver between the two, which in the case of Credit Suisse was nonexistent. The bottom line: Banks are a huge pile of assets offsetting another huge pile of liabilities. At that point, there wasn't another $17 billion left to lose — so the next tier up had to take a hit. Between the lines: In the normal world of mergers and acquisitions, that wouldn't be possible. It's unlikely this deal would receive shareholder approval from either side — which is one reason why Swiss authorities changed the law to enable the deal. Nevertheless, as Credit Suisse shows, they can still end up being worth a negative amount of money.

LONDON (AP) — Credit Suisse shares plunged Monday after Swiss authorities cut a deal with its bigger rival UBS to acquire the troubled bank at a marked-down ...

bank collapses and the danger to Credit Suisse was “an international banking crisis in the making.” “The banking system of Europe has not fully recovered from the crisis” in 2008, he said. [Silicon Valley Bank and Signature Bank](/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) in the U.S., including high interest rates. But concerns about risks to the deal, losses for some investors and Credit Suisse’s falling market value could renew However, Credit Suisse weathered the 2008 financial crisis without assistance, unlike UBS. banks](/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf). [Shares of Credit Suisse](/article/credit-suisse-banking-shares-plunge-switzerland-ba1861aa8b61170c00a2789287dc9a08), whose woes stem from questions over its internal controls, closed nearly 56% lower a day after UBS said it would buy its fellow Swiss bank for a lowball price of 3 billion Swiss francs ($3.25 billion). UBS is bigger but Credit Suisse wields considerable influence, with $1.4 trillion assets under management. Analysts say some previous forced bank mergers didn’t work out well for shareholders in the long run. failures have raised questions about other potentially weak global financial institutions, sweeping up the already beleaguered Swiss bank. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further [upheaval in the global financial system](/article/banks-federal-reserve-silicon-valley-lending-rescue-a04875a164165b50e971ff4576bf4e27). The shares traded at about the level they are valued at in the deal.

Lawyers from Switzerland, the United States and UK are talking to a number of Credit Suisse Additional Tier 1 (AT1) bond holders about possible legal action ...

Quinn Emanuel did not name the bondholders. PIMCO had 3.49% of its 5.66 billion euro ($6.06 billion) GIS Capital Securities Fund in Credit Suisse AT1 bonds, the Morningstar data showed. In Switzerland, the bonds' terms state that in a restructuring, the financial watchdog is under no obligation to adhere to the traditional capital structure hierarchy, which is how Credit Suisse AT1 bondholders lost out. Register for free to Reuters and know the full story Quinn Emanuel said it was in discussions with Credit Suisse AT1 bondholders representing a "significant percentage" of the total notional value the instruments. [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) Additional Tier 1 (AT1) bond holders about possible legal action after the state-backed rescue of Credit Suisse by UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) wiped out AT1 bonds, law firm Quinn Emanuel Urquhart & Sullivan said on Monday.

The surprise move by the SNB has rattled Europe's AT1 bond market, with investors now questioning whether their holdings could be obliterated if another bank ...

given the level of solvency of Credit Suisse… Quinn Emanuel Urquhart & Sullivan, a litigation firm headquartered in Los Angeles, said Monday that it had assembled a team of lawyers who were discussing options with Credit Suisse’s AT1 bondholders. But it is the owners of Credit Suisse’s $17 billion worth of “additional tier one” (AT1) bonds who have been left fully in the cold. “The hierarchy of claims remains applicable in the EU… WisdomTree, another AT1 ETF listed on the London Stock Exchange, fell 7.4% in afternoon trade. The move is at odds with the usual hierarchy of losses when a They were created in the wake of the 2008 financial crisis as a way for failing banks to absorb losses, making a taxpayer-funded bailout less likely. Credit Suisse shareholders will be largely wiped out, receiving the equivalent of just 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday. [and] pretty high level of regulatory capital,” he said. “This approach has been consistently applied in past cases.” there is no way that shareholders can be paid and AT1 holders [are] paid zero,” Benamou said. The Bank of England said that “holders of [AT1s] should expect to be exposed to losses” when a bank fails according to their usual ranking in the capital hierarchy.

The deal was brokered by the Swiss government to try to contain a crisis of confidence in global financial markets.

That is not a good signal to investors or to debt markets. And observers are actually calling this a bail-in, meaning that instead of the government spending massive amounts of taxpayer money to save a bank, they've persuaded another bank to save one of its competitors. So over the weekend, the Swiss government brokered a deal for UBS to take over Credit Suisse. That is not a good sign. The government took the unusual move of bypassing a vote by Credit Suisse shareholders because they were in a rush to do this before markets opened on Monday morning. And this was spurred in part by Credit Suisse's mismanagement, but also in part by bank failures in the U.S. So the Swiss government was worried about a domino effect that would put other big international banks at risk. And even though, in this case, the Swiss government did agree to contributing a $100 billion liquidity line to UBS as part of this deal, for Mark Williams, a professor of finance at Boston University, he says he's somewhat hopeful. And it depends on who you talk to and how pessimistic they are about the health of the overall financial system. What's the significance of this move? The bank was under pressure after other banks failed and investors lost confidence in banking stocks. People following the news have seen and heard that name in recent days.

For decades, Switzerland has sold itself as a haven of legal certainty for bond and equity investors. The collapse of Credit Suisse Group AG revealed some ...

U.S. Treasury yields rose on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse.

[finalized the takeover of Credit Suisse by UBS](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), the two largest Swiss banks. [joint liquidity operation with several other central banks](https://www.cnbc.com/2023/03/19/fed-other-central-banks-set-joint-liquidity-operation.html) around the world. "Our expectation is that the FOMC will raise the policy rate by 25bps, not 50bps," said Thierry Wizman, global FX and rates strategist at Macquarie. The Fed's next meeting is due to begin Tuesday, with a fresh interest rate policy decision expected Wednesday. The [2-year Treasury](/quotes/US2Y/) yield was trading at around 3.96% after rebounding to trade 11 basis points higher. The ETF at one point rose 5% during Monday's trading session, but saw some of its gains reverse as First Republic shares slide 47%.

The purchase of Credit Suisse by rival UBS created new questions about the true extent of a banking crisis that now has a global shadow.

“For the Credit Suisse situation, this was the most likely and powerful outcome for the market that most people expected,” Kennedy said. “If you look at CMBS, everybody is talking about office sector risk, but we’re really just at the beginning of that,” Kennedy noted. “However, we believe BBB- bonds bear substantial risk of underperforming, given the continued drumbeat of negative news for CRE assets.” 3650 REIT’s Kennedy was not optimistic about the current state of commercial real estate (CRE) lending. “The capital and liquidity positions of the U.S. But Credit Suisse bondholders are now feeling pain from the banking behemoth’s demise. “An acquisition is definitely a better outcome than a failure, so in that sense it’s good news,” said Alexi Savov, professor of finance at NYU Stern School of Business. The 167-year-old financial institution had a market cap as high as $78 billion in 2009, according to MarcoTrends.net. I think that’s bad for the market,” Kennedy told CO. it’s much better to have an acquisition than a disorderly liquidation.” banking system are strong, and the U.S. The deal, which was brokered by the Swiss government, received support from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, who released a joint statement Sunday shortly after the acquisition became public.

The Swiss bank had no choice but to accept a marriage of convenience with its rival after a crisis of confidence swept across debt markets.

Credit Suisse has succumbed to the emerging global banking crisis. That eliminates one major question facing the world's economies, but there are many ...

“That's my role as committee chair.” “So when people contribute to me, it's an endorsement of my agenda -- not the other way around,” McHenry said, when pressed by CNN on whether he should recuse himself from any investigations into the bank failures. “In this circumstance, we had not processed the contributions and we returned them all.”

"Only time will tell how this shotgun wedding is received," one analyst said of merger uniting the Swiss banks.

"The banking system of Europe has not fully recovered from the crisis" in 2008, he said. The deal follows the collapse of two large U.S. As part of the deal, approximately 16 billion francs ($17.3 billion) in higher-risk Credit Suisse bonds will be wiped out, leaving investors with hefty losses. But concerns about risks to the deal, losses for some investors and Credit Suisse's falling market value could renew fears about the health of banks. [urged UBS to take over its smaller rival](https://www.cbsnews.com/news/ubs-purchase-credit-suisse-fallout-silicon-valley-bank/) after a central bank plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) last week failed to reassure investors and customers. Tobias Straumann, an economic history professor at University of Zurich, said the merger was the right move because the U.S. It has faced an array of troubles in recent years, including bad bets on hedge funds, repeated shake-ups of its top management and a spying scandal involving UBS. Shares of Credit Suisse and other banks had tumbled last week after the failure of two banks in the U.S. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further upheaval in the global banking system. In an indication of the frantic, behind-the-scenes deal-making by Swiss authorities to resolve the issue before markets opened, the acquisition was announced late Sunday. The deal added volatility to other European bank stocks, which fell in early trading even as benchmark indexes climbed, before some clawed back their losses. UBS shares initially fell on the Swiss stock exchange but had gained more than 6% in afternoon trading.

FRANKFURT, Germany (AP) — In a bid to ease turmoil in the world financial system, Swiss authorities engineered a plan for the UBS bank to acquire its ...

And the way the takeover was done, by wiping out some of the Credit Suisse’s bondholders, rattled markets in those bonds. That was behind European Central Bank head Christine Lagarde’s statement last week after the bank raised rates by a half-percentage point. banks ignore the risk that interest rates might swiftly rise, as Silicon Valley did? UBS shares initially plunged Monday on fears that the bank has simply inherited trouble by buying Credit Suisse. Financial institutions had been in trouble since 2007, but it wasn’t until two weeks after Lehman that the U.S. But officials are showing that they learned one lesson from Lehman, “namely to act decisively and swiftly, and if needed to run roughshod over any discussion of moral hazard and legal obstacles, both of which can be discussed once the dust settles,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services International. That was a swift preemptive move used in earlier emergencies such as the pandemic market meltdown of 2020. “Containing crises is a bit like a game of whack-a-mole — with new fires starting as existing ones are extinguished,” said Neal Shearing, group chief economist at Capital Economics. government in 2008, when it let Lehman go under, spreading losses and fear across the financial system. Then fears about banks fed by the U.S. investment bank Lehman Brothers pitched the global economy into a crisis. Federal Reserve offered credit to banks that suffered uninsured losses on bond holdings due to rising interest rates.

Some of kingdom's officials harbored doubts about a $1.5 billion investment in bank before crown prince signed off.

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Banking giant UBS is buying troubled rival Credit Suisse for almost $3.25 billion, in a deal orchestrated by regulators to avoid further market-shaking ...

Lagarde reiterated what she said this month after the central bank raised interest rates – that the European banking sector is resilient, with strong financial reserves and plenty of ready cash. As a result, their downfall does not necessarily signal the start of a financial crisis similar to what occurred in 2008. As part of the deal, approximately 16 billion francs ($17.3 billion) in Credit Suisse bonds will be wiped out. The deal follows the collapse of two large U.S. “Today is one of the most significant days in European banking since 2008, with far-reaching repercussions for the industry,” said Max Georgiou, an analyst at Third Bridge. “An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.”

Investors responded in kind. In Europe, UBS shares rose 1.02% (though Credit Suisse tanked 55.74%, making each share worth less than $1). Banking stocks in the ...

[managed to rebound](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). [First Republic Bank continued sinking](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). All [major indexes made minor gains](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html). Bondholders, unsurprisingly, [aren't happy about it](https://www.cnbc.com/2023/03/20/17-billion-of-credit-suisse-bonds-worthless-following-ubs-takeover.html). [UBS to buy Credit Suisse](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), with an aim [to increase confidence in the banking sector](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html). The banking crisis is causing regional banks — which account for around a third of all lending in the United States — to reduce their loans, said Eric Diton, president and managing director of The Wealth Alliance. This suggests markets are already so jittery that whatever the Fed does — even if it's nothing — it might cause instability to spread. New York Community Bancorp (which [agreed to buy Signature Bank](https://www.cnbc.com/2023/03/20/fdic-announces-agreement-to-sell-signature-bank-assets.html)over the weekend) surged 31.65%, PacWest Bancorp jumped 10.78% and KeyCorp edged up 1.21%. Some bank stocks are in the doldrums, yes, but the SPDR S&P Regional Banking ETF, a fund of regional bank stocks, rose 1.11% on Monday. To stem the rout, [JPMorgan Chase is advising First Republic](https://www.cnbc.com/2023/03/20/jpmorgan-advising-first-republic-on-strategic-alternatives-including-a-capital-raise-sources-say.html)on strategic alternatives such as raising capital or attempting a sale, sources told CNBC's David Faber. The Dow Jones Industrial Average gained 1.2%, the S&P 500 added 0.89% and the Nasdaq Composite increased 0.39%. Banking stocks in the [pan-European index, Stoxx 600](https://www.cnbc.com/2023/03/20/european-markets-live-updates-ubs-buys-credit-suisse-news-stocks.html), were up 1.3%, giving the index a 1% gain.

Days before a hastily convened press conference late on Sunday that would make the world's front pages, Switzerland's political elite were secretly ...

"When you are a bank for billionaires, deposits can fly away very quickly," said one of the people involved. A spokesperson for FINMA said that although it laid emphasis on Britain and the U.S. "The taxpayer in this scenario has less risk," said Keller-Sutter. In banking center Zurich and Bern, the Alpine state's capital, pressure was building. Credit Suisse banks many Swiss companies and citizens - including finance minister Keller-Sutter. Credit Suisse's arms in Luxembourg, Spain and Germany were far smaller. By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis. In a matter of days its demise was sealed. It's a completely different ecosystem." monitored on a daily basis," he told Reuters. "They're a globally systemically important bank so ... The rescue concentrates even greater risks into one banking behemoth, UBS Group AG.