Share to Twitter Share to Linkedin Key Takeaways The Swiss government has arranged a corporate buy out of Credit Suisse, by their biggest rival UBS The sale price will be just $3.25 billion, despite Credit Suisse having a market cap of $8.6 billion in Friday It’s the latest in a string of banking failures and takeovers, following the closure of Silicon Valley Bank and Signature Bank First it was Silicon Valley Bank, then Signature Bank and now Credit Suisse has ceased trading as well. The story with Credit Suisse is a little different, as it’s not been shut down by the regulator. Instead, it was bought out at a fire sale price by UBS, in a deal orchestrated by the Swiss National Bank. This came off the back of a massive crash in the stock price, which saw it fall 67.78% over the last month. If you think that all sounds a bit hush, hush secret handshake, that’s because in some ways it is. Credit Suisse problems have existed for a long … [Read more...] about With Credit Suisse Investors The Latest To See Massive Losses, Are More Bank Failures To Come?
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Credit Suisse’s Collapse: A Cautionary Tale Of Returning To The Office
Share to Twitter Share to Linkedin The world watched in shock as Credit Suisse, one of the most established global banking and financial services institutions, collapsed and was eventually acquired by UBS. A significant factor in Credit Suisse's downfall was its rigid stance on forcing staff to return to the office. This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences. The Iron Fist: Credit Suisse's Return to the Office Policy In stark contrast to the growing trend of many companies embracing a flexible hybrid work approach, Credit Suisse took a more traditional approach, mandating that staff return to the office three days a week. According to one banker there, “they're removing our flexibility, and it doesn't feel great.” The bank's leadership failed to recognize the fundamental shift in employee expectations and the value of flexible work … [Read more...] about Credit Suisse’s Collapse: A Cautionary Tale Of Returning To The Office
From Ferdinand Marcos To Russian Oligarchs, Troubled Credit Suisse Is A Repeat Offender
Share to Twitter Share to Linkedin What happens when you repeatedly let cocaine dealers, crooks, and kleptocrats use your bank? The Swiss National Bank approves you for a loan up to 50 billion francs ($54 billion). Credit Suisse demonstrated yet again the advantage of being a global systemically important bank . Central banks, bank regulators and treasuries rescue big banks for fear of the havoc that Too Big To Fail banks can cause around the globe. A Decades-Long History Of Trouble Tuesday, Credit Suisse announced significant weaknesses in its financial reporting in 2021 and 2022. This is hardly the first time that Credit Suisse has shown its significant operational risk exposure, that is, problems with its employees, processes, and technology. In their February 2022 article for The Guardian , Crooks, Kleptocrats, and Crises , Kalyeena Makortoff and David Pegg walked us down an over two-decade memory lane of recidivist behavior at Credit Suisse. … [Read more...] about From Ferdinand Marcos To Russian Oligarchs, Troubled Credit Suisse Is A Repeat Offender
What’s Happening With Credit Suisse, Explained: Embattled Bank Rattles Stock Market As Banking Crisis Deepens
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
UBS Buying Rival Credit Suisse In $3.2 Billion Rescue Deal
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
Credit Suisse Stock Bounces With $54m Lifeline From Swiss National Bank
Share to Twitter Share to Linkedin Key Takeaways Credit Suisse stock plummeted on Wednesday as the Saudi National Bank announced that they would not be providing any further funding to the struggling multi-national With concerns mounting over a potential banking crisis after the failure of Silicon Valley Bank, the Swiss National Bank has stepped in and offered Credit Suisse a loan facility of $54 million It’s cold comfort for Credit Suisse shareholders, who have seen the value of their stock fall by over 90% over the past decade. The banking whirlwind hasn’t stopped for days, with Credit Suisse stock dropping 24.24% on Wednesday after their biggest shareholder, the Saudi National Bank, announced that they wouldn’t be providing any additional cash. Saudi National Bank Chairman Ammar Al Khudairy stated that this was due to the fact that a greater than 10% holding of the company would trigger complications from a regulatory standpoint, but the … [Read more...] about Credit Suisse Stock Bounces With $54m Lifeline From Swiss National Bank
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 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
UBS Buys Beleaguered Credit Suisse To Avoid A Potential Financial Contagion: Large Layoffs Are Likely
Share to Twitter Share to Linkedin Credit Suisse, the troubled Swiss-based investment bank, received an offer from their intra-country rival Union Bank of Switzerland (UBS) to purchase it for around $1 billion, according to The Financial Times. Swiss regulators spearheaded the deal to help restore trust and calm in a highly volatile global banking environment over the last few weeks. The Wall Street Journal reported talks are still ongoing, and the deal may be subject to change . In the wake of the sudden closures of U.S.-based Silicon Valley Bank , Signature Bank , and Silvergate Bank , along with concerns over the financial strength of the balance sheets of hundreds of small and regional banks, UBS and Swiss regulators need to plan for several exogenous factors that could impact the acquisition. One concern is how much money the Swiss authorities will allocate for guarantees or backstops if the worldwide banking situation worsens. Both … [Read more...] about UBS Buys Beleaguered Credit Suisse To Avoid A Potential Financial Contagion: Large Layoffs Are Likely
Credit Suisse Shares Plunge 60% And European Bank Stocks Slide After UBS Rescue
Share to Twitter Share to Linkedin Topline European banks bank stocks slid Monday, reinvigorating concerns about the financial system as already-turbulent markets respond to Swiss banking giant UBS purchasing stricken rival Credit Suisse in an emergency deal brokered after the failure of two U.S. banks. Key Facts Credit Suisse shares slid more than 60% at the start of trading on Monday morning in Zurich, continuing a poor streak that saw shares hit an all-time low last week. UBS shares also dropped more than 9% in early trading. Other leading European banks, including BNP Paribas, Société Générale, Santander and Deutsche Bank were also down between 3% and 6% on Monday morning. They lead a broader market dip in Europe, with key indexes also down, including London’s FTSE 100 (0.8%), Germany’s Dax (0.35%), France's CAC (0.3%) and Spain’s Ibex (1.04%). The price of oil also hit its lowest level since December 2021, with Brent … [Read more...] about Credit Suisse Shares Plunge 60% And European Bank Stocks Slide After UBS Rescue
UBS To Buy Beleaguered Credit Suisse To Avoid A Potential Financial Contagion—Large Layoffs Are Likely
Share to Twitter Share to Linkedin Credit Suisse, the troubled Swiss-based investment bank, received an offer from its intracountry rival Union Bank of Switzerland (UBS) to purchase it for around $1 billion, according to the Financial Times. Swiss regulators spearheaded the deal to help restore trust and calm in a highly volatile global banking environment over the last few weeks. The Wall Street Journal reported talks are still ongoing, and the deal may be subject to change . In the wake of the sudden closures of United States-based Silicon Valley Bank , Signature Bank and Silvergate Bank, along with concerns over the financial strength of the balance sheets of hundreds of small and regional banks, UBS and Swiss regulators need to plan for several exogenous factors that could impact the acquisition. One concern is how much money the Swiss authorities will allocate for guarantees or backstops if the worldwide banking situation worsens. Both … [Read more...] about UBS To Buy Beleaguered Credit Suisse To Avoid A Potential Financial Contagion—Large Layoffs Are Likely