UBS

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.

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 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.

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.

The plan, negotiated in hastily arranged crisis talks over the weekend, seeks to address a massive rout in Credit Suisse stock and bonds over the past week ...

The guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges. A liquidity backstop by the Swiss central bank failed to end a market drama that threatened to send clients or counterparties fleeing, with potential ramifications for the broader industry. The Swiss bank is paying more than $2bn (€1.8bn) for its rival, according to people with knowledge of the matter.

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.

Swiss regulators engineered a takeover of Credit Suisse by UBS in an attempt to restore confidence in the country's banking sector.

[sank 8.01%](https://www.cnbc.com/2023/03/17/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html). [stock futures rose](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html)on the news. [buy Credit Suisse for 3 billion Swiss francs ($3.2 billion)](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html). Over in the U.S., First Republic [plunged 32.80%](https://www.cnbc.com/2023/03/17/first-republic-shares-fall-despite-deposit-infusion-dragging-down-other-regional-banks.html)— and a further 15.37% in after-hours trading. Fed officials say they rely on data to determine the trajectory of interest rates. As Doug Roberts, founder and chief investment strategist at Channel Capital Research, said, Fed officials have "to do something, otherwise they lose credibility." Despite rebounding on Thursday amid news of financial support by central banks and financial regulators, on Friday, banks were badly hammered — once again — and dragged down major indexes with them. A stock may skyrocket one day on news it got billions from a cash infusion, and crater the next even though nothing material has changed in the intervening period. The biggest shifts: Visa, Mastercard and Paypal moved to the financial sectors from technology; Target, Dollar General and Dollar Tree joined Walmart as consumer staples from their previous category of consumer discretionary. A bank may be perfectly solvent one minute and collapse from a bank run the next. You can subscribe Like what you see?

UBS is set to take over its troubled Swiss rival Credit Suisse for $3.25 billion following weekend crunch talks aimed at preventing a wider international ...

That saw the SNB step in overnight with a $54-billion lifeline. In 2022, the bank suffered a net loss of $7.9 billion and expects a “substantial” pre-tax loss this year. The Swiss Bank Employees Association said there was “a great deal at stake” for the 17,000 Credit Suisse staff, plus tens of thousands of jobs outside of the banking industry potentially at risk. With the “risk of contagion” for other banks, including UBS itself, the takeover has “laid the foundation for greater stability both in Switzerland and internationally”, she said. Credit Suisse said in a statement that UBS would take it over for “a merger consideration of three billion Swiss francs ($3.25 billion, €3.04 billion)”. The wealthy Alpine nation is famed for its banking prominence and Berset said the takeover was the “best solution for restoring the confidence that has been lacking in the financial markets recently”.

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.

Also in today's newsletter, most of Signature Bank to be acquired by Flagstar owner.

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