Credit suisse group

Amanda Cooper, Tom Westbrook and John Revill (The Jakarta Post) PREMIUM Reuters   ● Tue, March 21 2023 Banking stocks and bonds plummeted on Monday as the hit to investors from UBS Group's state-backed takeover of Credit Suisse fanned concerns about the health of the global banking sector. UBS shares fell by as much as 16 percent in early trading, their biggest one-day fall since 2008, amid concerns among investors about the long-term benefits of the deal and the outlook for banks in Switzerland, a country once seen a paragon of sound banking. In a package engineered by Swiss regulators on Sunday, UBS Group will pay 3 billion Swiss francs (US$3.23 billion) for 167-year-old Credit Suisse Group and assume up to $5.4 billion in losses. to Read Full Story SUBSCRIBE NOW Starting from IDR 55,500/month Unlimited access to our web and app content e-Post daily digital newspaper No advertisements, no interruptions Privileged access to our events and … [Read more...] about Bank shares plummet despite Credit Suisse rescue plan

Share to Twitter Share to Linkedin Topline Uncertainty around Credit Suisse—the Swiss banking giant that's long been plagued by regulatory woes and financial stress—has wreaked havoc on global markets as concerns over rising interest rates around the world lead to historic bank failures and abrupt government intervention. Key Facts Following an announcement the Swiss National Bank would loan Credit Suisse up to $54 billion, shares rose as much as 33% on Thursday, settling on around a 17% gain as investors rallied around the central bank's efforts to help Credit Suisse avoid a potential collapse. The sudden stock surge is a stark difference from the bank’s seven-day losing streak, when shares were halted Wednesday because they fell to as much as 21%. The chaos broke out following Credit Suisse’s Tuesday announcement , stating it found “material weakness” in its 2021 and 2022 financial reporting process. After the lender shared … [Read more...] about What’s Happening With Credit Suisse, Explained: Embattled Bank Rattles Stock Market As Banking Crisis Deepens

Share to Twitter Share to Linkedin Topline UBS Group AG has offered to buy Credit Suisse—a rival Swiss bank facing economic uncertainty—in a deal worth roughly $1 billion, according to several reports Sunday, as bank executives and Swiss officials sprint to contain a crisis sparked in part by the collapse of two major U.S. banks last week. Key Facts The Swiss government is set to announce the deal soon, according to the New York Times , with a reported goal of completing the merger before Asian markets open Monday morning. However, the Financial Times reported there is no guarantee a deal will be reached, and Bloomberg reported that Credit Suisse pushed back on the deal because the offer was too low. If the deal is closed, it would represent a significant discount: UBS would pay $0.27 (or 0.25 Swiss Francs) per share in stock, according to the Financial Times , compared to Credit Suisse’s $2.01 share price when markets closed … [Read more...] about UBS Offers To Buy Embattled Bank Credit Suisse For Up To $1 Billion, Reports Say

Share to Twitter Share to Linkedin Topline UBS Group AG has struck a deal to buy Credit Suisse—a rival Swiss bank rocked by financial turmoil—for over $3 billion, the two banks announced Sunday, as bank executives and Swiss officials sprint to contain a crisis sparked in part by the collapse of two major U.S. banks last week. Key Facts UBS ultimately agreed to pay $3.2 billion (or 3 billion Swiss Francs) in an all-share deal, with Credit Suisse investors receiving one UBS share for every 22.48 Credit Suisse shares held, up from a $1 billion initial offer that Credit Suisse reportedly viewed as too low. The deal represents a large discount compared to Credit Suisse’s market capitalization just two days ago: UBS says the acquisition will cost the equivalent of $0.82 (or 0.76 Swiss Francs) per share, less than half Credit Suisse’s $2.01 share price when markets closed Friday. The combined company will have over $5 trillion in total … [Read more...] about UBS Buying Rival Credit Suisse In $3.2 Billion Rescue Deal

Share to Twitter Share to Linkedin The trauma from the 2008 “Lehman shock” still looms large in the psyches of Asian policymakers. This can be seen by how quickly Credit Suisse’s stumble seemed to transport officials back to the events of 15 years ago. So far, the “ Credit Suisse shock ” has been far less cataclysmic. And thankfully so. Unlike Lehman Brothers, the Swiss giant was rescued by UBS AG. Whether that forced financial marriage will work is anyone’s guess. But Credit Suisse’s troubles, coming on the heels of the Silicon Valley Bank crisis in the U.S., has economists adjusting downward growth prospects for the region. China will be no exception, as headwinds from the West make Beijing’s 5% gross domestic product target look less and less attainable. Even before most Asians had ever heard of SVB or New York-based Signature Bank, China was finding it harder than expected to bounce from the Covid era. While respectable, the 3.5% rise in … [Read more...] about Credit Suisse Shock Makes China’s 5% GDP Target Harder

Chairman of the board of directors of UBS, Colm Kelleher, chairman of the board of directors of Credit Suisse, Axel Lehmann, Federal Councilor and chief of the finance federal department Karin Keller-Sutter, Swiss Federal Council (Bundesrat) president and chief of the interior federal department, Alain Berset and chairperson of the Swiss National Bank Thomas Jordan attend a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. REUTERS/Denis Balibouse Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG on Sunday to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Soon after the announcement late on Sunday, the U.S. Federal … [Read more...] about Central banks try to calm markets after UBS deal to buy Credit Suisse

Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 19, 2023. REUTERS/Moritz Hager LONDON  – Financial markets were poised for relief on Monday after UBS Group AG agreed to buy Credit Suisse Group AG in a rescue orchestrated by the state, while major central banks announced a coordinated move to shore up liquidity in the financial system. In an early sign that risk appetite was set for a bounce, the euro, sterling and the Australian dollar all edged up, data from trading platform EBS and Reuters Dealing showed. Crypto currency bitcoin rose over 5 percent. UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and agreed to assume up to $5.4 billion in losses as it winds down the smaller peer’s investment bank after a shotgun merger engineered by Swiss authorities. Meanwhile, in a coordinated global response, central banks including the Federal Reserve said they would enhance dollar swap lines, helping calm investors … [Read more...] about World markets set for relief after Credit Suisse buyout, central banks action

Banking stocks and bonds plummeted on Monday after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse Group AG, a deal that was orchestrated in an attempt to restore confidence in a battered sector. In a package engineered by Swiss regulators on Sunday, UBS Group AG will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG and assume up to $5.4 billion in losses. Credit Suisse shares slumped 62 percent in premarket trade to a new low while UBS lost 7.1 percent. Those sharp moves followed a day of heavy selling in Asian financial markets as early investor optimism about official efforts to stem a banking crisis quickly evaporated. In particular, investor focus has shifted to the massive hit some Credit Suisse bondholders would take under the UBS acquisition, which has added to anxiety about other key risks including contagion, the fragile state of U.S. regional banks and the challenges for central banks as they seek to contain … [Read more...] about Relief over Credit Suisse rescue short-lived as bank shares plummet

ZURICH, Switzerland  – Credit Suisse rallied on the stock market Thursday after grabbing a $54 -billion central bank lifeline in a bid to restore investor confidence but analysts remain wary about the major lender’s future. Shares in Switzerland’s second-biggest bank closed up 19 percent at 2.02 Swiss francs, recovering some of the ground lost Wednesday on its worst-ever day on the stock exchange. As market fears over the risk of another global banking crisis swirled, shares plunged more than 30 percent during Wednesday’s trading to 1.55 Swiss francs, pushing the Swiss National Bank to come to the rescue in a bid to reassure the markets. Hours before the stock exchange reopened, Credit Suisse announced it would borrow 50 billion francs from the SNB to reinforce the group. The embattled bank said it was also making buyback offers on about $3 billion worth of debt. “These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic … [Read more...] about Credit Suisse bounces back but caution lingers

Chairman of the board of directors of Credit Suisse, Axel Lehmann, chairman of the board of directors of UBS, Colm Kelleher and Federal Councilor and chief of the finance federal department Karin Keller-Sutter attend a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. REUTERS/Denis Balibouse LONDON  – 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 economy more dependent on a single lender. The unprecedented move announced late on Sunday in Zurich capped a race against time by regulators to avert a meltdown in global markets. 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. The transaction – the first rescue of a global bank since the financial crisis of 2008 – grants enormous clout to UBS, ridding it of … [Read more...] about UBS swallows doomed Credit Suisse, casting shadow over Switzerland