Credit Suisse

It is hoped that securing Credit Suisse will avert the contagion of the kind seen in the financial crisis of 2008, when banks including Bear Sterns and Lehman ...

This was always a deal that the Swiss government had resisted. The only alternative to this deal happening was going to be when financial markets opened on Monday in Asia and then in Europe, some form of nationalisation or resolution of Credit Suisse which would have deepened the sense of crisis in the industry. But let's be clear - all the parties involved in this deal have effectively been strong-armed into it by the crisis of confidence which has erupted at Credit Suisse, and which has been fomenting for some time. In a statement, the Swiss central bank and other officials said that the agreement represented "a solution...to secure financial stability and protect the Swiss economy in this exceptional situation". The credit line was agreed in a move aimed at reassuring markets and depositors, but it failed to stem a rush of customer withdrawal, prompting a request from the Swiss government for the rival UBS to consider a takeover. The Swiss central bank will supply substantial liquidity to the merged bank in a deal that it says is aimed at securing financial stability.

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.

UBS will take over Credit Suisse, Swiss authorities said, in a deal to combine Switzerland's top two banks designed to contain a widening crisis of ...

Credit Suisse shares lost a quarter of their value last week. US President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilize its balance sheet. "With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation," the Swiss central bank said.

Credit Suisse is designated by the Financial Stability Board, an international body that monitors the global financial system, as one of the world's ...

That fanned fears that Credit Suisse would be the next domino to fall. The stock has seen a long downward slide: It traded at more than 80 francs in 2007. 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”. 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. But that did not appear to be enough.

Swiss government has forced through the takeover of stricken bank Credit Suisse by rival.

Deposit outflows from Credit Suisse topped SFr10 billion a day late last week, the Financial Times has previously reported. The government is also providing a loss guarantee of up to SFr9 billion, but only after UBS has borne the first SFr5 billion of losses on certain portfolios of assets. UBS has $1.1 trillion of total assets on its balance sheet and Credit Suisse has $575 billion. Swiss parliamentarians will also eventually have to approve the process – albeit retrospectively; a vote will be held within the next six months. “This solution was the takeover of Credit Suisse by UBS.” However, the offer remains far below Credit Suisse’s closing price of SFr1.86 on Friday.

Credit Suisse Group Chief Financial Officer Dixit Joshi and his team are holding meetings over the weekend to assess strategic scenarios for the embattled ...

Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations. In December, Credit Suisse had tapped investors for 4 billion Swiss francs. In July, new CEO and restructuring expert Ulrich Koerner unveiled a strategic review - but failed to win over investors. With more than 150 offices in around 50 countries, Credit Suisse is the private bank for a large number of entrepreneurs, rich and ultra rich individuals and companies. Credit Suisse confirmed in February that clients had pulled 110 billion Swiss francs (€110 billion) of funds in the fourth quarter while the bank suffered its biggest annual loss of 7.29 billion Swiss francs since the financial crisis. [thrown a $54 billion lifeline by the Swiss central bank on Thursday](https://www.rte.ie/news/business/2023/0316/1363515-credit-suisse-54-billion-lifeline/) to shore up liquidity after a slump in its shares and bonds intensified fears about a global banking crisis.

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.

The writer is managing partner and head of research at Axiom Alternative Investments. Bank investors are well aware of the risks; they know that banking ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

So farewell to Credit Suisse. Founded in 1856, the bank has been a pillar of the Swiss financial sector ever since. Although buffeted by the financial ...

In the coming days, there will be some tough questions to answer. There will also be job losses, perhaps in the thousands. In theory, it had the capital to prevent this week's catastrophe. Founded in 1856, the bank has been a pillar of the Swiss financial sector ever since. That lack of attention is going to be very costly. After the financial crisis 15 years ago Switzerland introduced strict so-called "too big to fail" laws for its biggest banks.

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.

FRANKFURT — Swiss banking giant UBS will buy the country's second-largest bank Credit Suisse in a deal that will come as a relief to financial markets in ...

It has thus found itself in the eye of the storm when the collapse of Silicon Valley Bank sparked fears of a banking crisis. The expeditious rescue of Credit Suisse was welcomed by the European Central Bank as well as the “With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss National Bank said in a separate The central bank added that UBS and Credit Suisse can obtain a liquidity assistance loan of up to 100 billion francs. FRANKFURT — Swiss banking giant UBS will buy the country’s second-largest bank Credit Suisse in a deal that will come as a relief to financial markets in Europe and across the world. The deal was pushed through in an effort to avoid further turmoil in global banking following the failure of Silicon Valley Bank and another regional lender in the U.S.

Banks race to finish takeover to calm fears of new global financial crisis.

[any potential failure by Credit Suisse could prove to be a “Lehman moment”](https://www.theguardian.com/business/2023/mar/15/svb-collapse-slow-rolling-crisis-blackrock-boss-larry-fink), a reference to the collapse of Lehman Brothers in September 2008, widely seen as the proximate cause of the crash. [bank’s worst full-year loss](https://www.theguardian.com/business/2023/feb/09/credit-suisse-bonuses-loss-jobs-restructuring) since the 2008 banking crisis. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) and the government said to be keen to announce a takeover as soon as Sunday afternoon, the Bank of England has reportedly signalled its blessing for such a deal. [fuelled anxiety about contagion in the international banking system](https://www.theguardian.com/business/2023/mar/18/bank-runs-bailouts-rescues-are-the-ghosts-of-2008-rising-again). [$54bn loan to Credit Suisse from the Swiss central bank](https://www.theguardian.com/business/2023/mar/16/credit-suisse-takes-50bn-loan-from-swiss-central-bank-after-share-price-plunge) failed to halt the precipitous slide in its share price. [Bank of England](https://www.theguardian.com/business/bankofenglandgovernor) will not object to UBS taking over fellow Swiss lender Credit Suisse as soon as this weekend, according to reports, amid a frantic race to stave off a crisis with echoes of the 2008 global banking crash.

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.

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.

Value of risky additional tier one debt written down to zero in move expected to jolt markets.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

We'll send you a myFT Daily Digest email rounding up the latest Credit Suisse Group AG news every morning. Banking is a massive, complicated and delicate ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

Credit Suisse shares were quoted at 0.61 Swiss francs ($0.6578) in Julius Baer premarket trading, while those in UBS were down 4.73 per cent at 15.81 ...

An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.” SNB refers to the Swiss National Bank. Credit Suisse shares were quoted at 0.61 Swiss francs ($0.6578) in Julius Baer premarket trading, while those in UBS were down 4.73 per cent at 15.81 francs.

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

The Swiss central bank said yesterday's deal includes 100 billion Swiss francs in liquidity assistance for UBS and Credit Suisse. "I know that there must be still questions that we have not been able to answer," he said. And Credit Suisse urged its staff to go to work, according to a memo to staff seen by Reuters. "The Credit Suisse debacle will have serious ramifications for other Swiss financial institutions. "And I understand that and I even want to apologise for it." In a package orchestrated by Swiss regulators yesterday, UBS Group will pay 3 billion Swiss francs (€3.04bn) for 167-year-old Credit Suisse Group and assume up to €5.08bn in losses.

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.

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.

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.

François Villeroy de Galhau said French banks 'a strong grip on risk' © Bloomberg. France's central bank governor has insisted the health of the French ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

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.

Swiss regulators brokered rescue by UBS in bid to stop crisis from spreading across global financial system.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

The shotgun Swiss banking marriage is backed by a massive government guarantee, helping prevent what would have been one of the largest banking collapses ...

Quite the contrary, it has gone global. "The reports that UBS is acquiring Credit Suisse will likely magnify Credit Suisse's problems by moving them to UBS." In a package orchestrated by Swiss regulators on Sunday, UBS Group AG (UBSG.S) will pay 3bn Swiss francs (€3.03bn) for 167-year-old Credit Suisse Group AG (CSGN.S) and assume up to €5.7bn in losses.

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.

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.

European stocks bounced off their earlier lows today as utilities and miners gained, offsetting some losses in bank stocks that were sparked by UBS' shotgun ...

Because you're talking about Silicon Valley Bank - it's just a really recklessly run bank, really poor," he said, Please review their details and accept them to load the content. However it is important to differentiate between this situation and the situation in the US, he said. He said the deal is a complex one and is confusing the market somewhat, which is why bank shares are falling today. Shares in London were up 0.7%, while the market in Paris rose by 1.5% and the German markets had gained 1.2% this afternoon. Shares of Credit Suisse had slumped as much as 60% to a fresh record low of 0.73 francs after rival UBS Group said it will pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old bank and assume up to $5.4 billion in losses.

Banking stocks and bonds plummeted on Monday as the hit to investors from UBS Group's state-backed takeover of Credit Suisse fanned concerns about the ...

In a separate memo, the bank said as part of the takeover if job cuts proved necessary it would be communicated to staff as per guidelines. "And I understand that and I even want to apologise for it." The banking sector lurched into crisis earlier in March with failure of U.S. Problems remain in the U.S. Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. European bank shares slumped, with an index of leading lenders down 5.8 per cent.

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.

UBS is to take over the failing Credit Suisse in a €3bn deal following a weekend of frantic negotiations which involved the Swiss government and banking ...

On the other side of this deal is Francesca McDonagh who works as chief financial officer with Credit Suisse. He signed up for the maximum 10-year term with the company headquartered in Zurich. While there he ran the company’s fixed-income trading desks.

European Central Bank (ECB) president Christine Lagarde has said that Frankfurt “stands ready” to provide any supports required to protect financial ...

Additional tier 1 (AT1) bonds have their roots in the financial crisis of 2008 and its regulatory aftermath. This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions.” Under the terms of the agreement, some 16 billion Swiss francs (€16.2 billion) of Credit Suisse’s additional tier 1 (AT1) capital bonds, which are designed to take losses when institutions run into trouble and to transfer the risk of a bank failure from taxpayers to investors, are being wiped out. She said: “The euro area banking sector is resilient, with strong capital and liquidity positions. He added that the decision raises questions about what the Swiss regulator knows about the true quality of Credit Suisse’s book, a sentiment that is likely to “weigh on confidence in banks more broadly for the time being at least”. “However, the monumental decision on the part of the regulator to invoke a clause in the contractual AT1 documentation to effect a permanent writedown of the AT1 securities is unprecedented and raises questions around the future role of AT1 paper in bank capital structures,” Mr Cronin wrote.

“In my eyes, this is against the law,” said Patrik Kauffman, a fund manager at Aquila Asset Management, who invests in additional tier 1 (AT1) bank debt.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

As in politics, a week is a long time in banking. A little over seven days ago, all appeared well in the world of global finance, but fast forward to today ...

A subgroup of the Financial Stability Group has been set up to track what is happening and any implications for Ireland. In the US regulators moved in rapidly to deal with the situation at Silicon Valley Bank and the other lenders. Political leaders, central banks and regulators have also been quick to repeatedly emphasise the resilience and capital strength of banks across the EU, UK and US. The reason Irish bank share prices have been falling for much of the last week is that all the nervousness is pushing funding costs up. But right now, the problems don’t appear to be systemic in the same way that they were in 2008, at the start of the last crisis. But the game was up and by last weekend, it was staring into oblivion, forcing the Swiss authorities to manufacture a marriage of convenience with larger rival UBS for a little over $3 billion, a fraction of what it had been worth. It then sought to raise funding after it sold some of those bonds at a loss, which in turn sparked a bank run that drained its deposits in a matter of days. But fast forward to today and a string of banks in the US have been rescued from the brink or closed their doors. After it emerged that it was haemorrhaging deposits and its largest backer, Saudi National Bank, said it could not provide any more financial assistance, Credit Suisse was forced to tap the Swiss central bank for $54 billion in liquidity last week. A litany of other subsequent scandals and regulatory problems continued to beset the company until the shift in sentiment towards banks caused by the Silicon Valley Bank collapse focused attention on it. In 2021 it took a reputational and financial hit after the Australia and UK based financial services firm Greensill Capital folded, leading the bank to freeze billions in investment funds. While here in Europe, in order to survive, one of the continent’s best-known lenders has been forced into a shotgun marriage with its nearest rival.

Decision over bonds rips up convention and could undermine confidence in banking system.

Since there are reckoned to be $275bn (£224bn) of these instruments in issue around the world, it is not a small market to mess with – thus other regulators’ scramble to say nothing has changed in their back yards. But the long-term impact of the ATI affair is the big unknown. The problem is solely the ripping-up of the hierarchy of financial pain. One could take the view that shareholders are getting only a tiny sum of less than a franc a share but, by rights, the figure ought to be zero. And the terms, at face value, look generous to UBS, so the risk of creating a bigger banking whirlpool is lessened. [do the deal over a weekend](https://www.theguardian.com/business/2023/mar/19/credit-suisse-bank-of-england-wont-object-to-takeover-as-ubs-considers-1bn-bid).