The Limited Times

Now you can see non-English news...

Hectic crisis talks about Credit Suisse: UBS offer rejected – fears of stock market unrest

2023-03-19T15:44:22.406Z


The ailing major Swiss bank Credit Suisse is facing an emergency sale. The decisive talks to prevent a last-minute bank tremor are apparently taking place on Sunday.


The ailing major Swiss bank Credit Suisse is facing an emergency sale.

The decisive talks to prevent a last-minute bank tremor are apparently taking place on Sunday.

Update from March 19, 4:15 p.m .:

The fate of the tumbling Swiss bank Credit Suisse (CS) is still in the balance.

In the room is a complete or partial emergency takeover of the second largest Swiss bank by the larger competitor UBS.

According to reports, another option was state involvement.

A takeover of Credit Suisse (CS) by UBS would be the most significant banking merger in Europe since the financial crisis 15 years ago.

However, according to reports, the negotiations turned out to be very tough.

The aim was to reach an agreement by Monday morning before the global stock exchanges opened.

Because Credit Suisse is one of the 30 global systemically important banks whose failure would shake the international financial system.

Credit Suisse: Crisis negotiations between the financial institutions and the Swiss banking supervisory authority 

Update from March 19, 3:30 p.m.:

According to Blick, a press conference is to take place on Sunday evening in the media center in Bern.

In the room is a takeover of the second largest Swiss bank by the largest Swiss bank UBS.

That would be the most significant bank merger in Europe since the financial crisis.

Update from March 19, 3:20 p.m.:

The Swiss Bank Staff Association is very concerned.

According to the Wall Street Journal, at least 9,000 jobs could be cut at Credit Suisse as a result of the takeover.

In Switzerland, a total of 40,000 people are said to work at UBS and Credit Suisse.

Credit Suisse rejects UBS offer

Update from March 19, 2:05 p.m .:

Credit Suisse apparently rejected UBS’s first offer.

Bloomberg

reports

.

Accordingly, the offer of more than one billion US dollars is “too low”.

On Friday, CS still had a market value of almost eight billion dollars.

Update from March 19, 1:40 p.m .:

The new Superbank consisting of UBS and CS is becoming more and more realistic.

According to a report in the Swiss Handelszeitung, it should already be clear who would lead this after a possible merger: the current UBS boss Ralph Hamers.

And according to the report, there should also be no changes at the top of the board of directors.

Colm Kelleher is to remain Chairman of the Board of Directors.

The report relies on insider information.

UBS offers a billion for Credit Suisse

Update from March 19, 1:09 p.m .:

Apparently, UBS is offering $1 billion to buy the ailing Credit Suisse.

That is well below the market value at which the CS share was traded on Friday.

"Fear of Collapse": Showdown for banking giant Credit Suisse - financial thriller in Switzerland

First report from March 19:

These are fateful hours for the major Swiss bank Credit Suisse.

After 167 years, it has gotten into such trouble that an emergency sale to its biggest competitor is being negotiated.

A decision could still be made on Sunday, as reported by the Swiss

Blick

.

The future of the ailing Credit Suisse is currently still uncertain.

The government met for the crisis meeting on Saturday evening without commenting specifically on any decisions afterwards.

In the room is a complete or partial takeover of the second largest Swiss bank by the largest Swiss bank UBS.

A spokeswoman for Credit Suisse and a spokesman for UBS said on Sunday that there was no further comment from their side.

Banking thriller about Credit Suisse: emergency sale on Sunday?

According to media reports, the Swiss supervisory authorities are urging UBS to take over its smaller local rival.

State guarantees are a prerequisite for a deal that will be frantically negotiated over the weekend.

The Swiss government in Bern should issue a guarantee to cover the risks associated with the takeover, it said.

According to the

Financial Times

, the National Bank wants there to be a "simple and straightforward" agreement between the two banks "before the markets open on Monday".

A takeover of Credit Suisse by UBS would be the most significant banking merger in Europe since the financial crisis.

According to Blick,

the Swiss National Bank, UBS, CS and the financial regulator Finma are sitting at the negotiating table

.

According to the report, the decisive meeting with the Federal Council will take place on Sunday.

Only then will the public be informed about the next steps.

"Fear of Collapse": Why a CS-Aus could shake the world

Credit Suisse was already battered by scandals and mismanagement when it fell into another downward spiral after the collapse of the US bank Silicon Valley Bank (SVB).

It received a loan commitment from the Swiss National Bank in the amount of CHF 50 billion (almost EUR 51 billion), but was only able to stop the downward trend in the share price temporarily.

The government in Bern is under considerable pressure to stabilize the situation.

Because Credit Suisse is one of the 30 global systemically important banks whose failure would shake the international financial system.

A collapse of the bank would, according to fears, trigger a chain reaction that could no longer be controlled.

The Swiss newspaper "Tages-Anzeiger" sees the takeover of the bank by UBS as the only way out.

Customer trust is completely gone, and the outflow of money is immense.

Several international banks have restricted their business with Credit Suisse.

The loan of CHF 50 billion from the National Bank is of no use either.

"Everyone is afraid of collapsing," said the paper.

In addition, a possible CS collapse would play into the hands of Vladimir Putin.

(rjs/dpa)

Source: merkur

All news articles on 2023-03-19

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.