Credit Suisse

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.

UBS will pay for $4.34 billion and assume up to $7.24 billion in losses in a deal expected to close by the end of 2023. Read more at straitstimes.com.

Clients pulled out more than US$100 billion of assets in the final three months of 2022 as concerns mounted about its financial health, and the outflows continued even after it tapped shareholders in a capital raise of four billion Swiss francs. The two banks, both counted by the international Financial Stability Board as systemically relevant globally, are interlinked through frequent exchanges of executives. Credit Suisse has written down its Additional Tier 1 bonds to zero as part of its takeover by UBS, angering some bondholders who thought they would be better protected in the rescue deal. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” for restoring calm. “The UBS-CS deal is the best solution the market could have hoped for,” said Michael Rosen, chief investment officer at Angeles Investments. “The euro area banking sector is resilient, with strong capital and liquidity positions,” the ECB said.

Additional Tier 1 bonds are a creature of the post-financial crisis regulatory architecture for Europe. In addition to carrying far more plain equity, big banks ...

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CREDIT Suisse was a pillar of Swiss banking that rapidly collapsed, its foundations fatally undercut by repeated missteps that left it shaky when storms in ...

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.

UBS Chair Colm Kelleher is buying Credit Suisse because he has to, not because he wants to. The 3 billion Swiss franc ($3.2 billion) rescue deal, ...

A UBS takeover is preferable to the Swiss government nationalising Credit Suisse or winding it down. The all-share offer values Credit Suisse at 60% less than its closing share price on Friday, and at a fraction of its 45 billion Swiss franc book value at the end of last year. On a call with analysts late on Sunday, UBS executives stumbled over some of the numbers – perhaps unsurprising for a transaction negotiated over a weekend. Meanwhile the government will cover up to 9 billion Swiss francs of losses, such as markdowns on Credit Suisse assets, past a certain threshold. The job for Kelleher was how to avoid infecting UBS with its arch-rival’s problems. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) Chair Colm Kelleher is buying Credit Suisse [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) because he has to, not because he wants to.

SINGAPORE : U.S. stock futures rose in Asian trade on Monday in relief at a weekend rescue deal for Credit Suisse, though the mood was nervous and financial ...

The safe-haven yen eased slightly to 132.39 per dollar. The euro rose 0.1 per cent to US$1.0682. "It's the irony of good news reflecting how bad things are. Beaten-down bank shares bounced 1 per cent in Tokyo, while the broader Nikkei fell 0.2 per cent. Advertisement

Credit Suisse Group AG, once one of the stalwarts of the global financial system, is no more.

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.

CREDIT Suisse said 16 billion Swiss francs (S$23.1 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator ...

UBS Group AG is emerging as a rare winner in Credit Suisse Group AG's crisis after a historic, government-brokered deal that contains a raft of financial ...

The takeover by UBS will trigger a “complete write-down” of the bank's additional tier 1 bonds. Read more at straitstimes.com.

AT1 bonds were introduced in Europe after the global financial crisis to serve as shock absorbers when banks start to fail. “This will be a total blow to the AT1 market. This is why the decision to write down the bank’s riskiest debt – rather than its shareholders – provoked a furious response from some of Credit Suisse’s AT1 bond holders. “Those bonds were created for moments like this, similar to catastrophe bonds.” BLOOMBERG, REUTERS The deal will trigger a “complete write-down” of the bank’s additional tier 1 (AT1) bonds. In that instance, the equity was also written off.

"The takeover is not expected to have an impact on the stability of Singapore's banking system." MAS added that it "has been in close touch" with the Swiss ...

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The UBS takeover of Credit Suisse is not expected to impact on the stability of Singapore's banking system, said MAS. Read more at straitstimes.com.

[UBS has agreed to buy long-time rival Credit Suisse for 3 billion Swiss francs (S$4.3 billion).](https://www.straitstimes.com/business/ubs-agrees-to-buy-credit-suisse-as-global-regulators-reassure-markets) UBS will also assume up to US$5.4 billion (S$7.2 billion) in losses in a deal expected to close by the end of 2023. SINGAPORE – The UBS takeover of Credit Suisse is not expected to have an impact on the stability of Singapore’s banking system, with the latter to continue operating in Singapore without interruptions and its customers having access to their accounts, the Monetary Authority of Singapore (MAS) said on Monday. The two Swiss banks – key pillars of Swiss finance – do not serve retail customers, and they primarily run private banking and investment banking businesses in Singapore.

S&P 500 futures rose 0.7% in bumpy trade and bonds fell as investors reckoned less immediate fears of financial instability reduced the likelihood of rate cuts ...

Financials [(.AXFJ)](https://www.reuters.com/quote/.AXFJ) in Australia fell 0.8% and the ASX 200 [(.AXJO)](https://www.reuters.com/quote/.AXJO) fell 0.5%. The safe-haven yen eased slightly to 132.39 per dollar. The euro rose 0.1% to $1.0682. The Asia day offered an encouraging start, with Japanese yen cross-currency swaps , a measure of non-U.S. "It's the irony of good news reflecting how bad things are. A top Australian central banker on Monday said stress in the global banking system was mainly confined to a small number of poorly managed banks and was just one of many considerations for domestic monetary policy. [major banks](/business/finance/two-major-banks-europe-worry-about-contagion-look-regulators-reassurance-sources-2023-03-19/) in Europe are examining scenarios of contagion in the region's banking sector and are looking to the Fed and the ECB for stronger signals of support, two senior executives close to the discussions told Reuters. Register for free to Reuters and know the full story Central banks including the Fed, the European Central Bank and Bank of Japan pledged to deepen support for liquidity, by increasing the frequency of seven-day dollar-swap operations from weekly to daily. [(.IBNKS.T)](https://www.reuters.com/companies/.IBNKS.T), while the broader Nikkei [(.N225)](https://www.reuters.com/quote/.N225) fell 0.2%. [buy Credit Suisse](/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) for 3 billion francs ($3.2 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities. SINGAPORE, March 20 (Reuters) - Asian stocks steadied and U.S futures rose on Monday in relief at a weekend rescue deal for Credit Suisse and a concerted effort from central banks to shore up the mood, though trade was tense and volatile as contagion fears stalked financial shares.

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.

CREDIT Suisse Group told staff that promised bonuses and pay increases will still be paid as the bank seeks to keep “business as usual” after a tumultuous ...

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.

The central bank added in its statement that Credit Suisse's contracts with counterparties remain in force. Read more at straitstimes.com.

[UBS has agreed to buy long-time rival Credit Suisse for 3 billion Swiss francs (S$4.3 billion).](https://www.straitstimes.com/business/ubs-agrees-to-buy-credit-suisse-as-global-regulators-reassure-markets) UBS will also assume up to US$5.4 billion (S$7.2 billion) in losses in a deal expected to close by the end of 2023. SINGAPORE – The UBS takeover of Credit Suisse is not expected to have an impact on the stability of Singapore’s banking system, with the latter to continue operating in Singapore without interruptions and its customers having access to their accounts, the Monetary Authority of Singapore (MAS) said on Monday. The two Swiss banks – key pillars of Swiss finance – do not serve retail customers, and they primarily run private banking and investment banking businesses in Singapore.

ASIAN equities sank on Monday following a sell-off in New York as investors fret over the financial sector, despite central banks' pledges to provide ...

Moves by authorities to avert a global banking crisis lifted market confidence on Monday as investors welcomed a historic Swiss-backed acquisition of ...

The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" in restoring calm. Problems remain in the U.S. "I know that there must be still questions that we have not been able to answer," he said. "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. Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. The MSCI index for financial stocks in Asia ex-Japan was down 1.3 per cent.

PHILLIP Securities said it remains positive on Singapore banks despite the recent collapse of Swiss banking giant Credit Suisse, resulting in a ...

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 ...

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The Straits Times Index was down 1.6 per cent at 2.45pm, with all three local banks in the red. Read more at straitstimes.com.

The European Central Bank vowed to support euro zone banks with loans if needed, adding that the Swiss rescue of Credit Suisse is “instrumental” in restoring calm. “The Credit Suisse debacle will have serious ramifications for other Swiss financial institutions. A countrywide reputation with prudent financial management, sound regulatory oversight and, frankly, for being somewhat dour and boring regarding investments has been wiped away,” said Mr Octavio Marenzi, chief executive of Opimas in Vienna. In Singapore, the Straits Times Index ended was down 1.4 per cent, with all three local banks in the red. Quite the contrary, it has gone global,” said Mr Mike O’Rourke, chief market strategist at Jones Trading. In the memo to employees, Credit Suisse said that once the takeover is complete, wealth management clients may want to consider moving some assets to another bank if concentration is a concern.

Troubled bank Credit Suisse has been rescued by Swiss rival UBS in a government-backed deal. Read more at straitstimes.com.

That is where the ‘blame’ lies. “The current banking crisis is not likely to be as wrenching as the global financial crisis. Put on your big-boy pants and look in the mirror. “For sure, it is going to slow growth. For sure, it is going to take down inflationary pressures. “Bloomberg reports the gunslingers who foolishly kept holding Credit Suisse’s bail-in bonds are angry they are being wiped out.

Credit Suisse employs 50,000 people globally across wealth management, investment banking and asset management operations, with more than 150 offices in 50 ...

Advertisement said one Southeast Asia-based banker, who like other staff spoke to Reuters on condition of anonymity.

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.

Oil prices and global shares fell after UBS unveiled plans to buy its struggling Swiss rival Credit Suisse for $3.2 billion over the weekend.

[plans to buy](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) its beleaguered Swiss rival Credit Suisse on Sunday. Asian markets also responded negatively to the news of UBS’ acquisition. In premarket trading early Monday morning, Wells Fargo and JPMorgan Chase were down more than 1% and Goldman Sachs, Citigroup and Bank of America between 0.4% and 0.6%. Credit Suisse bondholders are likely to be angry following the deal, as their investments are likely to be From market close on Friday, all were down between 3% and 4% on Monday morning. Its position grew terminal last week after its delayed annual report acknowledged “material weaknesses” in financial reporting and sent [shares](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) into freefall. [UBS Buying Rival Credit Suisse In $3.2 Billion Rescue Deal](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) (Forbes) [What's Happening With Credit Suisse, Explained: Embattled Bank Rattles Stock Market As Banking Crisis Deepens](https://www.forbes.com/sites/ariannajohnson/2023/03/16/whats-happening-with-credit-suisse-explained-embattled-bank-rattles-stock-market-as-banking-crisis-deepens/?sh=2560db1135a2) (Forbes) Credit Suisse’s downfall comes at a poor time for global financial markets, which are already reeling from the recent failure of two U.S. The $3.2 billion deal, partly an effort to calm roiling financial markets, is a huge discount given Credit Suisse’s market valuation and heralds the creation of a new Swiss banking behemoth and the start of a new [era](https://www.reuters.com/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) for lending in Switzerland. [wiped out](https://www.ft.com/content/d1ae9a54-c4a7-4742-8b2d-afff549f4f95), a move that could exacerbate market worries. Years of unrest following a string of controversies—including [charges](https://www.theguardian.com/news/2022/feb/21/tax-timeline-credit-suisse-scandals) of money laundering, sanctions breaches, corruption, fraud and tax evasion, [links](https://www.forbes.com/sites/isabeltogoh/2021/11/04/credit-suisse-burned-by-archegos-and-greensill-scandals-shifts-focus-to-wealth-management-in-overhaul/?sh=2016c9052488) with collapsed firms Archegos and Greensill Capital and [revelations](https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians) it had [spied](https://www.forbes.com/sites/isabeltogoh/2019/10/01/credit-suisse-executive-resigns-over-spy-scandal-that-has-rocked-switzerlands-banks/?sh=63fb620c137e) on its own staff—eroded that position. [streak](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) that saw shares hit an all-time low last week.

Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country's gross ...

UBS and Credit Suisse were both in a group of the 30 global systemically important banks watched closely by regulators. That loan is protected in the event of a default. Credit Suisse said last Wednesday it would take 50 billion francs from the scheme, which provides funding secured against collateral such as mortgages and securities. The third tranche of support allows Credit Suisse to draw on a further 100 billion francs of funding via a public liquidity backstop, which is explicitly guaranteed by the Swiss government. [announced on Sunday](/business/finance/ubs-take-over-credit-suisse-central-bank-2023-03-19/) that UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) had agreed to buy rival Swiss bank Credit Suisse [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) in a shotgun merger aimed at avoiding more market-shaking turmoil in global banking. ZURICH, March 20 (Reuters) - Credit Suisse and UBS could benefit from more than 260 billion Swiss francs ($280 billion) in state and central bank support, a third of the country's gross domestic product, as part of their merger to buffer Switzerland against global financial turmoil, documents outlining the deal show.