Credit Suisse

The Swiss central bank said the deal marked a solution to secure financial stability and protect the Swiss economy in an exceptional situation.

The bank was forced to tap US$54 billion in central bank funding as it tries to recover from scandals that have undermined the confidence of investors and clients. It said the deal marked a solution to secure financial stability and protect the Swiss economy in an exceptional situation. US authorities are working with their Swiss counterparts to help broker a deal, Bloomberg reported, while Sky News said the Bank of England has indicated to international counterparts and to UBS that it would back the proposed takeover of Credit Suisse, which counts Britain as a key market. Swiss authorities are examining imposing losses on Credit Suisse bondholders as part of a rescue of the bank, two sources with knowledge of the matter said on Sunday. The fallout from the crisis of confidence in Credit Suisse and the failure of the two US banks could ripple through the financial system this week, the two executives separately told Reuters on Sunday. The Swiss central bank will supply substantial liquidity to the merged bank, it said at a news conference in the Swiss capital, Bern.

A deal brokered by Swiss authorities sees UBS buying Credit Suisse in hopes of restoring confidence in the financial market.

Credit Suisse is one of 30 banks around the world deemed so crucial to the international banking system that they are thought to be too big to fail.

That saw the SNB step in overnight with a US$54 billion lifeline. Credit Suisse, the country's SNB central bank and the Swiss financial watchdog FINMA all declined to comment on the negotiations when contacted by AFP. In 2022, the bank suffered a net loss of US$7.9 billion (NZ$12.6 billion) and expects a "substantial" pre-tax loss this year. UBS was being urged by the authorities to get a deal over the line before the stock exchange reopens on Monday, in a bid to reassure investors and avoid a wave of contagious panic on the markets. Credit Suisse, the country's second-biggest bank after UBS, "has been a source of worry for several months", he said, adding that turbulence on the markets in recent days showed that "the necessary confidence" in the bank could not be restored. Swiss President Alain Berset said the government was confident that the takeover was the "best solution" for "restoring confidence that has been lacking the financial markets recently".

Financial Times: Swiss authorities engineer deal to combine country's two biggest banks.

They are the bank’s two largest shareholders and jointly own 17 per cent of the stock. However, it is unlikely it will get indemnity from any losses on assets, one of the people involved said. Swiss authorities have already secured preapproval from relevant regulators in the US and Europe, which are expected to issue co-ordinated statements today. UBS has also agreed to a softening of a material adverse change clause that would void the deal if its credit default spreads jump, they added. Deposit outflows from Credit Suisse topped SFr10b a day late last week, the FT has reported. The US Federal Reserve has given its assent to the deal, they added.

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.

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.

MAS' statement on Credit Suisse's operations in Singapore after the announced takeover by UBS Group AG.

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.

The name's Bond – unhedged Treasury bond. Jonathan Milne argues that bond traders have again become sexy, for all the wrong reasons.

Effectively, the slow-moving Reserve Bank monetary policies are thought to have overshot – so now mortgage rates may begin to drop. That would take it to a peak of 5.0 percent. As New York bond trader and self-described “Master of the Universe” Sherman McCoy discovered in Tom Wolfe’s epic novel, this is a confidence game. “In general, anything that relied on low interest rates should fall into question,” says Bloomberg commentator John Authers. But they do have some exposure to high interest rates, not so much in their bonds as in their mortgage portfolios. This morning's announcement is the latest chapter in the story of Credit Suisse – fast becoming a new Bonfire of the Vanities. “In general, anything that relied on low interest rates should fall into question. The collapse of Silicon Valley Bank was because it amassed a US$124b bond portfolio and didn’t hedge against the bulging interest rate exposure. It admitted the flight of customers had yet to reverse. Last year, it was the biggest-ever spike in government bond yields that caused the near-collapse of UK pension funds and a sudden end to Liz Truss’ resident at No 10. “It was hedged for interest-rate moves. “Unlike Silicon Valley Bank, it didn’t have a big pile of unrealised losses on bonds.

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.

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.

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.

Asian markets trade lower as investors assess UBS' $3.2 billion purchase of Credit Suisse.

Bancorp](/quotes/USB/) lost 2%. [First Republic](/quotes/FRC/). [Bank of America](https://www.cnbc.com/quotes/BAC/), [Wells Fargo](https://www.cnbc.com/quotes/WFC/), [Citigroup](https://www.cnbc.com/quotes/C/) and [JPMorgan Chase](https://www.cnbc.com/quotes/JPM/) said Thursday they would contribute about $5 billion apiece to First Republic as part of the rescue plan. [Truist Financia](/quotes/TFC/)l and [State Street](/quotes/STT/) fell about 3% each before the bell, while [PNC](/quotes/PNC/), [Bank of New York Mellon](/quotes/BK/) and [U.S. on what happens with the state of the markets and this financial instability risk over the next few days." Friday's nosedive has brought the stock down more than 70% from where it started the week. The combined bank will have $5 trillion of invested assets, according to UBS. But market observers say the central bank's next decision on interest rates has been made less certain over the past week amid the bank crisis. 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. It said, however, Flagstar's bid did not include the roughly $4 billion in deposits related to Signature's digital banking business. dollar swap line arrangements from weekly to daily.

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 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.

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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.

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.

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.

“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.

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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).

The Swiss government has come under fire from bondholders and international regulators for its handling of the $3.2bn rescue-takeover of Credit Suisse by ...

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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%.

Concerns among Credit Suisse shareholders in the wake of its purchase by main rival UBS. The $3.2-billion purchase has been driven by regulators, but norma.

- Publish Date - Tue, 21 Mar 2023, 8:28AM - Author

For most people in Switzerland, the news that Credit Suisse was to be saved from collapse by local rival UBS was met with stunned disbelief.

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UBS shares have dropped on fears that it has simply taken on Credit Suisse's problems.

Could there be trouble in other parts of the financial sector that don’t take insured deposits, such as investment banks, hedge funds and mortgage brokers? And the way the takeover was done, by wiping out some of Credit Suisse’s bondholders, rattled markets in those bonds. UBS shares initially plunged Monday on fears that the bank has simply inherited trouble by buying Credit Suisse. 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. Financial institutions had been in trouble since 2007, but it wasn’t until two weeks after Lehman that the US Congress came to the system’s aid with a US$700b emergency economic stabilisation act. That was a swift preemptive move used in emergencies such as the pandemic market meltdown of 2020.

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.

The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.

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UBS bank's acquisition of Credit Suisse was an urgent attempt at preventing a global financial crisis, stoked by recent bank failures in the US.

Could there be trouble in other parts of the financial sector that don’t take insured deposits, such as investment banks, hedge funds and mortgage brokers? And the way the takeover was done, by wiping out some of the Credit Suisse's bondholders, rattled markets in those bonds. UBS shares initially plunged Tuesday on fears that the bank has simply inherited trouble by buying Credit Suisse. “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. 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. Financial institutions had been in trouble since 2007, but it wasn't until two weeks after Lehman that the US Congress came to the system's aid with a US$700 billion (NZ$1.1 trillion) emergency economic stabiliSation act.

The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS' state-backed takeover ...

dollar index rose 0.06% to 103.40. Sterling slipped 0.1% to $1.2260. "There has been pretty modest demand for U.S. dollars to go around. Still, sentiment is fragile, as investors grapple with bank stress that has mushroomed from weakness in regional U.S. regarding future rate expectations," he said, with the peak seen at 5.5% only a few weeks ago, against about 4.8% now. It held at 131.24 yen , just above a five-week low at 130.55. banks to the humbling of a global lender in a matter of days. Register for free to Reuters and know the full story According to the One consequence has been a substantial repricing ... "That has clouded the picture for the March (Fed) meeting and beyond.

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.

Bond giant PIMCO lost about $340 million on a category of Credit Suisse bonds that were wiped out by the takeover by UBS , with the American investment ...

Shareholders usually rank below bondholders in terms of who gets paid when a bank or company collapses. [a rescue merger](/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) with UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S), said the source. [fell sharply](https://www.yahoo.com/entertainment/european-banks-at1-bonds-slump-080224258.html) on Monday as the treatment of Credit Suisse AT1 bondholders highlighted the risks of investing in these securities. [said](/business/finance/possible-legal-action-by-some-credit-suisse-at1-bondholders-discussed-law-firm-2023-03-20/) it was talking to a number of Credit Suisse AT1 holders about possible legal action. [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) Additional Tier 1 (AT1) bonds in PIMCO’s mutual funds had been worth about $340 million on Friday, the source familiar with the matter said. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S), with the American investment manager's overall exposure to the Swiss lender running into billions, a source familiar with the situation said.

Credit Suisse's “CoCo” bonds did exactly what they were designed to do: Transfer all the risk of debt from the bank to bondholders.

Credit Suisse's domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, ...

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