According to the Financial Times, UBS is in talks to buy Credit Suisse


Credit Suisse has been a weak link in the banking sector since a series of scandals. Dennis Balibouz/Reuters

The Swiss Central Bank “wants a simple solution before the markets open on Monday,” the daily stresses.

UBS, the first Swiss bank, is in talks to fully or partially take over Swiss creditIts rival is in great difficulty, with the express blessing of Swiss regulatory authorities, it said on Friday financial times . The Swiss regulators – the central bank (SNB) and the financial market watchdog (Finma) – told their American and British colleagues that the takeover by UBS was Their Plan ATo stop the crisis of confidence that Credit Suisse is experiencing, he writes financial timesquoting an unnamed source with knowledge of the talks.

Swiss Central Bank He wants a simple solution before the markets open on Monday., Ensure daily business, which realizes that it is not certain that an agreement can be found. UBS wants to assess the risks that a competitor’s full or partial takeover of its own business might pose, another anonymous source told the Financial Times. Asked by AFP, the Swiss National Bank answered this “do not commentJust like Credit Suisse. UBS and Finma did not immediately respond to requests.

Credit Suisse has been in turmoil for two years, but things picked up on Wednesday when investors – rocked by the bankruptcy of a Silicon Valley bank in the US – sold shares of the second Swiss bank. The stock was worth only CHF1.55 at the height of the storm, an all-time low. Credit Suisse has been a weak link in the banking sector since a series of scandals and a restructuring plan that has struggled to convince.

Table of Contents

Reassure the markets

At the end of Wednesday, Bank of Zurich’s market capitalization was less than CHF7 billion, a paltry amount for one of the 30 banks in the world considered too big to fail. On Wednesday night, after remaining silent all day, the SNB offered verbal support and liquidity.

On the night of Wednesday to Thursday, Credit Suisse borrowed 53 billion Swiss francs from it to give itself a rest and move forward with its restructuring. For the Swiss National Bank, this was a matter of reassuring markets around the world. I worked for a while. Investors pushed the stock higher, but that was only a brief respite: The stock fell more than 8% on Friday. This bank, founded in 1865, which was a major player in the Swiss economic miracle, is only worth CHF8 billion on the stock market, when UBS is worth 56.6 billion.



Source link

Leave a Reply

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