Report: UBS Considering Taking Over All or Part of Credit Suisse as Share Prices Drop.
On Friday evening, there were reports that UBS, a major bank based in Switzerland, is in talks to acquire some or all of Credit Suisse. This comes after a day of struggles for Credit Suisse, which saw their stock price decrease even though they received a $54 billion cash infusion the day before.
The boards of both banks are going to have separate meetings over the weekend. This is because the Swiss National Bank and Swiss Finma are concerned about Credit Suisse, which they helped when it was in difficulty. This news was reported by The Financial Times.
There are anticipated conversations on the horizon after a high-ranking official at Credit Suisse disclosed that the bank's wealth management clients were departing. According to unidentified sources, a potential solution to mitigate the loss of trust is for UBS, worth $56 billion, to merge with Credit Suisse, worth $7 billion, and this is being referred to as "plan A." This information was reported by the Financial Times.
It was reported that UBS has been examining the possible hazards of assuming the responsibilities of its Swiss equivalent to its own operations.
According to Reuters, several significant banks such as Deutsche Bank and Societe Generale issued constraints on fresh transactions with Credit Suisse, which has further exacerbated the bank's issues. Furthermore, HSBC was reported to be thoroughly examining loans associated with Credit Suisse securities.
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According to recent statements made by CEO Ulrich Koerner, Credit Suisse is a powerful and widespread bank. The bank exceeds all regulatory requirements and has robust financial foundations in terms of capital and liquidity.
According to Reuters, bankers and investors are currently exploring possibilities where Credit Suisse may dispose or shut down some of its operational divisions or divisions could be split.
Credit Suisse, a bank with a history of problems, has now become the biggest financial institution to be affected by a banking crisis that is rapidly getting worse. Last Friday, the parent company of Silicon Valley Bank was forced to file for bankruptcy after its customers started taking billions of dollars out of their accounts. Similarly, First Republic Bank in San Francisco also suffered from massive withdrawals, causing the largest banks on Wall Street to put together a rescue plan for the troubled bank.
At first, the agreement helped soothe anxious American investors. However, by Friday, the shares of banks started falling once more due to concerns that the situation is getting worse.