Credit Suisse news

2023 - 3 - 18

UBS - ubs credit suisse

UBS makes offer for Credit Suisse; bondholder losses considered (CNA)

Swiss authorities are examining imposing losses on Credit Suisse bondholders as part of a rescue, two sources with knowledge of the matter said on Sunday, while ...

Credit Suisse shares lost a quarter of their value in the last week. A final decision on imposing losses on bondholders has not been taken, and the terms could still change, according to sources. Credit Suisse shares lost a quarter of their value last week. [UBS sought US$6 billion from the Swiss government as part of a possible purchase of its rival. Citing people familiar with the matter, it said an offer made on Sunday was of 0.25 Swiss francs (US$0.27) per Credit Suisse share, well below Friday's closing price of 1.86 Swiss francs and all but wiping out the bank's existing shareholders. One source previously said the talks were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combined. The bank was forced to tap US$54 billion in central bank funding as it tries to recover from a scandals that have undermined the confidence of investors and clients. It said there was no guarantee that terms will remain the same or that a deal would be reached. [follow a brutal week ](https://www.channelnewsasia.com/business/credit-suisse-shares-sink-shareholder-rules-out-cash-3348786)for banking stocks and efforts in Europe and the United States to support the sector since the collapse of US lenders [Silicon Valley Bank](https://www.channelnewsasia.com/business/silicon-valley-bank-close-failure-united-states-banking-sector-fed-inflation-3339996) and Signature Bank. 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. The bank was forced to tap US$54 billion in central bank funding as it tries to recover from scandals that undermined the confidence of investors and clients. The Swiss Bank Employees Association on Sunday called for the immediate creation of a task force to deal with the risk to jobs.

Credit Suisse said to push back against UBS's US$1 billion offer (The Business Times)

UBS is offering to buy Credit Suisse for as much as US$1 billion, a deal that the troubled Swiss firm is pushing back on with backing from its biggest ...

Credit Suisse bank: UBS said to be in takeover talks with troubled rival (BBC News)

Shares in Credit Suisse have fallen sharply in recent days after it said it had found "material weakness" in its financial reporting. An emergency $54bn (£44.5 ...

The bank reported a loss of 7.3bn Swiss francs ($7.9bn; £6.5bn) in 2022 - its worst year since the financial crisis of 2008 - and has warned it does not expect to be profitable until 2024. [failure of two lenders in the US](https://www.bbc.co.uk/news/business-64951630) - Silicon Valley Bank and Signature Bank - raising fears over the health of the banking system UBS is said to have asked the Swiss government to cover about $6bn (£4.9bn) in costs if it were to buy Credit Suisse, according to sources quoted by Reuters.

Credit Suisse, SVB, Signature Bank: What you need to know (Reuters)

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

UBS offers to buy rival Credit Suisse for up to US$1 billion (The Straits Times)

A fusion between Swiss banking giants UBS and Credit Suisse would be an historic event for the nation and global finance. PHOTO: EPA-EFE. Updated.

Credit Suisse had been unprofitable over the course of the last decade and racked up billions in legal losses. The Swiss authorities are seeking to broker a deal that would address a rout in Credit Suisse that sent shock waves across the global financial system over the past week when panicked investors dumped its shares and bonds following the collapse of several smaller US lenders. “The investment bank is the bit that most people want to spin off,” said Mr James Athey, investment director at Abrdn. Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, the people said. Chief executive officer Ulrich Koerner had said the firm was looking at a potential initial public offering for the business in 2025. As one of 30 global systemically important banks, Credit Suisse’s failure would ripple throughout the entire financial system.

UBS offers to buy Credit Suisse for up to $1bn (Financial Times)

Swiss authorities expected to change country's law to bypass UBS shareholder vote.

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UBS offers to buy Credit Suisse for up to $1 billion, the Financial ... (CNBC)

The deal, which could be signed as early as this evening, values Credit Suisse at around $7 billion less than its market value at Friday's close.

The Swiss bank's balance sheet is around twice the size of Lehman Brothers when it collapsed, at around 530 billion Swiss francs as of end-2022. It is also far more globally inter-connected, with multiple international subsidiaries — making an orderly management of Credit Suisse's situation even more important. Credit Suisse's scale and potential impact on the global economy is much greater than the U.S. The country is reportedly considering whether it would take over the bank completely or hold a significant equity stake. The fast-moving nature of the negotiations means the terms of any end deal could be different from those reported. [worst weekly decline since the onset of the coronavirus pandemic](https://www.cnbc.com/2023/03/17/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html), despite an announcement that it would access a loan of up to 50 billion Swiss francs ($54 billion) from the Swiss central bank.