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.

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.

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".

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?

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 Swiss National Bank also pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. In this article.

The Swiss National Bank pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. 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. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. Credit Suisse Chairman Axel Lehmann said in the press conference that the financial instability brought about by the collapsed U.S. "The capital and liquidity positions of the U.S. reeled from the collapse of Silicon Valley Bank and Signature Bank. 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. and abroad. 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. banking system are strong, and the U.S. to global finance."

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.

We'll send you a myFT Daily Digest email rounding up the latest UBS Group AG news every morning. UBS shares tumbled more than 10 per cent in early trading ...

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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.

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.

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 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.