Index Investing News
Wednesday, May 28, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

UBS eyeing takeover of Credit Suisse, sources say, as fears of banking contagion mount By Reuters

by Index Investing News
March 18, 2023
in Stocks
Reading Time: 3 mins read
A A
0
Home Stocks
Share on FacebookShare on Twitter


© Reuters. FILE PHOTO: A logo is seen on the headquarters of Swiss bank Credit Suisse on Paradeplatz in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse

By John O’Donnell

(Reuters) – UBS AG was mulling a takeover of its embattled Swiss peer Credit Suisse on Saturday, sources said, which could allay fears that an unfolding crisis at the bank might destabilise the global financial system.

The 167-year-old Credit Suisse is the biggest name ensnared in the turmoil unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank (NASDAQ:) over the past week, spurring a broad-based loss in investor confidence globally.

Both U.S. and European banking executives and regulators have taken extraordinary measures to shore up the industry to try to restore confidence. The Biden Administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilize its shaky balance sheet.

UBS was under pressure from the Swiss authorities to carry out a takeover of its local rival to get the crisis under control, two people with knowledge of the matter said. The plan could see the Swiss government offer a guarantee against the risks involved, while Credit Suisse’s Swiss business could be spun off.

UBS, Credit Suisse and Switzerland’s financial regulator FINMA declined to comment.

The Financial Times said UBS, Credit Suisse and regulators were rushing to finalise a deal on a merger as soon as Saturday evening, citing people familiar with the matter.

Credit Suisse shares lost a quarter of their value in the last week. It was forced to tap $54 billion in central bank funding as it tries to recover from a string of scandals that have undermined the confidence of investors and clients. This made it the first major global bank to take up an emergency lifeline since the 2008 financial crisis.

The company ranks among the world’s largest wealth managers and is considered one of 30 global systemically important banks whose failure would ripple throughout the entire financial system.

The banking sector’s fundamentals are stronger and the global systemic linkages are weaker than during the 2008 global financial crisis, Goldman analyst Lotfi Karoui wrote in a late Friday note to clients. That limits the risk of a “potential vicious circle of counterparty credit losses,” Karoui said.

“However, a more forceful policy response is likely needed to bring some stability,” Karoui said. The bank said the lack of clarity on Credit Suisse’s future will pressure the broader European banking sector.

A senior official at China’s central bank said on Saturday that high interest rates in the major developed economies could continue to cause problems for the financial system.

There were multiple reports of interest for Credit Suisse from other rivals. Bloomberg reported that Deutsche Bank (ETR:) was looking at the possibility of buying some of its assets, while U.S. financial giant BlackRock (NYSE:) denied a report that it was participating in a rival bid for the bank.

GRAPHIC: Credit Suisse and First Republic Bank (NYSE:) (https://fingfx.thomsonreuters.com/gfx/mkt/znvnblzmrvl/Pasted%20image%201679097444078.png)

INTEREST RATE RISK

The failure of California-based Silicon Valley Bank brought into focus how a relentless campaign of interest rate hikes by the U.S. Federal Reserve and other central banks – including the European Central Bank this week – was pressuring the banking sector. SVB and Signature’s collapses are the second- and third-largest bank failures in U.S. history behind the demise of Washington Mutual during the global financial crisis in 2008.

Banking stocks globally have been battered since SVB collapsed, with the S&P Banks index falling 22%, its largest two weeks of losses since the pandemic shook markets in March 2020.

Big U.S. banks threw a $30 billion lifeline to smaller lender First Republic, and U.S. banks altogether have sought a record $153 billion in emergency liquidity from the Federal Reserve in recent days.

This reflects “funding and liquidity strains on banks, driven by weakening depositor confidence,” said ratings agency Moody’s (NYSE:), which this week downgraded its outlook on the U.S. banking system to negative.

While support from some of the titans of U.S. banking prevented First Republic’s collapse, investors were startled by disclosures on its cash position and how much emergency liquidity it needed.

In Washington, focus has turned to greater oversight to ensure that banks and their executives are held accountable.

U.S. President Joe Biden called on Congress to give regulators greater power over the sector, including imposing higher fines, clawing back funds and barring officials from failed banks.



Source link

Tags: BankingContagionCrediteyeingFearsMountReuterssourcesSuisseTakeoverUBS
ShareTweetShareShare
Previous Post

Anthony Edwards injured, Timberwolves’ season gets worse

Next Post

Materials Sector Weekly Round-up: Gold stocks top list; other metals suffer

Related Posts

Baird Small/Mid Cap Development Fairness Fund Q1 2025 Commentary

Baird Small/Mid Cap Development Fairness Fund Q1 2025 Commentary

by Index Investing News
May 28, 2025
0

This text was written byObserveBaird is a world monetary companies agency offering Personal Wealth Administration, Belief, Asset Administration, Funding Banking,...

Semtech Company 2026 Q1 – Outcomes – Earnings Name Presentation (NASDAQ:SMTC)

Semtech Company 2026 Q1 – Outcomes – Earnings Name Presentation (NASDAQ:SMTC)

by Index Investing News
May 28, 2025
0

This text was written byObserveLooking for Alpha's transcripts workforce is answerable for the event of all of our transcript-related initiatives....

“Previous-Original” Technical Evaluation Factors To Warning (SPX)

“Previous-Original” Technical Evaluation Factors To Warning (SPX)

by Index Investing News
May 27, 2025
0

This text was written byObserveMichael James McDonald is a inventory market forecaster, creator and former Senior Vice President of Investments...

Micron: Share Worth Motion Lags Behind Fundamentals (NASDAQ:MU)

Micron: Share Worth Motion Lags Behind Fundamentals (NASDAQ:MU)

by Index Investing News
May 27, 2025
0

This text was written byObserveComing from an IT background, I've dived into the U.S. inventory market seven years in the...

Constellium Inventory Faces Challenges In Aluminum Market (NYSE:CSTM)

Constellium Inventory Faces Challenges In Aluminum Market (NYSE:CSTM)

by Index Investing News
May 27, 2025
0

This text was written byObserveI’m a personal investor searching for trades with 2-3 12 months time horizons. I publish on...

Next Post
Materials Sector Weekly Round-up: Gold stocks top list; other metals suffer

Materials Sector Weekly Round-up: Gold stocks top list; other metals suffer

Credit card trends continue normalizing in February, nearing prepandemic level (NYSE:BFH)

Credit card trends continue normalizing in February, nearing prepandemic level (NYSE:BFH)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Legislation calls for the return of Kilmar Abrego Garcia –
Las Vegas Solar Information

Legislation calls for the return of Kilmar Abrego Garcia – Las Vegas Solar Information

April 24, 2025
Actual Help Occurs at These Costs

Actual Help Occurs at These Costs

June 13, 2022
Morgan Stanley CEO Ted Pick focused on hitting financial targets

Morgan Stanley CEO Ted Pick focused on hitting financial targets

January 18, 2024
Lionel Messi and the unmistakeable sense of an ending

Lionel Messi and the unmistakeable sense of an ending

July 15, 2024
Hillwood Sells 2 Memphis Industrial Property

Hillwood Sells 2 Memphis Industrial Property

January 17, 2025
Fresh lawsuit targets New York’s rollout of adult-use marijuana

Fresh lawsuit targets New York’s rollout of adult-use marijuana

December 22, 2023
World Darts Championship: Nathan Aspinall cruises previous Andrew Gilding and into final 16 as Ryan Joyce additionally progresses | Darts Information

World Darts Championship: Nathan Aspinall cruises previous Andrew Gilding and into final 16 as Ryan Joyce additionally progresses | Darts Information

December 28, 2024
US strong enough to avoid recession, says Biden economic adviser

US strong enough to avoid recession, says Biden economic adviser

October 23, 2022
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In