Credit Suisse

The writer is managing partner and head of research at Axiom Alternative Investments. Bank investors are well aware of the risks; they know that banking ...

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So farewell to Credit Suisse. Founded in 1856, the bank has been a pillar of the Swiss financial sector ever since. Although buffeted by the financial ...

In the coming days, there will be some tough questions to answer. There will also be job losses, perhaps in the thousands. In theory, it had the capital to prevent this week's catastrophe. Founded in 1856, the bank has been a pillar of the Swiss financial sector ever since. That lack of attention is going to be very costly. After the financial crisis 15 years ago Switzerland introduced strict so-called "too big to fail" laws for its biggest banks.

The deal, backed by the Swiss government, follows weekend talks aimed at preventing its collapse.

The acid test as to whether this Swiss rescue has calmed nerves in the financial world will be when financial markets open on Monday - which is why it was so important to get this done on Sunday night. Credit Suisse has become the latest and most important casualty of a crisis of confidence that has already seen the failure of two mid-sized US banks and an emergency industry whip-round for another. That has spooked investors and seen the share prices of all banks fall with those considered weakest hit hardest. The Bank of England said it welcomed the "comprehensive set of actions" set out by the Swiss authorities. The Bank of England said it welcomed the "comprehensive set of actions". The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.

Asian markets trade lower as investors assess UBS' $3.2 billion purchase of Credit Suisse.

Bancorp](/quotes/USB/) lost 2%. [First Republic](/quotes/FRC/). [Bank of America](https://www.cnbc.com/quotes/BAC/), [Wells Fargo](https://www.cnbc.com/quotes/WFC/), [Citigroup](https://www.cnbc.com/quotes/C/) and [JPMorgan Chase](https://www.cnbc.com/quotes/JPM/) said Thursday they would contribute about $5 billion apiece to First Republic as part of the rescue plan. [Truist Financia](/quotes/TFC/)l and [State Street](/quotes/STT/) fell about 3% each before the bell, while [PNC](/quotes/PNC/), [Bank of New York Mellon](/quotes/BK/) and [U.S. on what happens with the state of the markets and this financial instability risk over the next few days." Friday's nosedive has brought the stock down more than 70% from where it started the week. The combined bank will have $5 trillion of invested assets, according to UBS. But market observers say the central bank's next decision on interest rates has been made less certain over the past week amid the bank crisis. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. It said, however, Flagstar's bid did not include the roughly $4 billion in deposits related to Signature's digital banking business. dollar swap line arrangements from weekly to daily.

The takeover creates a banking giant such as Switzerland has never seen before – and raises concerns about possible layoffs.

The decisions taken in Bern "are instrumental for restoring orderly market conditions and ensuring financial stability," she said. That saw the SNB step in overnight with a US$54-billion lifeline. The Swiss Bank Employees Association said there was "a great deal at stake" for the 17,000 Credit Suisse staff, plus tens of thousands of jobs outside of the banking industry potentially at risk. In 2022, the bank suffered a net loss of US$7.9 billion and expects a "substantial" pre-tax loss this year. Credit Suisse said in a statement that UBS would take it over for "a merger consideration of three billion Swiss francs (US$3.25 billion)". The wealthy Alpine nation is famed for its banking prominence and Berset said the takeover was the "best solution for restoring the confidence that has been lacking in the financial markets recently".

BERN: UBS will take over its troubled Swiss rival Credit Suisse for US$3.25 billion following crunch talks Sunday aimed at stopping the stricken bank from ...

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The state-backed rescue is a risky bet that makes the Swiss economy dependent on a single lender.

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S&P 500 futures rose 0.7% in bumpy trade and bonds fell as investors reckoned less immediate fears of financial instability reduced the likelihood of rate cuts ...

Financials [(.AXFJ)](https://www.reuters.com/quote/.AXFJ) in Australia fell 0.8% and the ASX 200 [(.AXJO)](https://www.reuters.com/quote/.AXJO) fell 0.5%. The safe-haven yen eased slightly to 132.39 per dollar. The euro rose 0.1% to $1.0682. The Asia day offered an encouraging start, with Japanese yen cross-currency swaps , a measure of non-U.S. "It's the irony of good news reflecting how bad things are. A top Australian central banker on Monday said stress in the global banking system was mainly confined to a small number of poorly managed banks and was just one of many considerations for domestic monetary policy. [major banks](/business/finance/two-major-banks-europe-worry-about-contagion-look-regulators-reassurance-sources-2023-03-19/) in Europe are examining scenarios of contagion in the region's banking sector and are looking to the Fed and the ECB for stronger signals of support, two senior executives close to the discussions told Reuters. Register for free to Reuters and know the full story Central banks including the Fed, the European Central Bank and Bank of Japan pledged to deepen support for liquidity, by increasing the frequency of seven-day dollar-swap operations from weekly to daily. [(.IBNKS.T)](https://www.reuters.com/companies/.IBNKS.T), while the broader Nikkei [(.N225)](https://www.reuters.com/quote/.N225) fell 0.2%. [buy Credit Suisse](/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) for 3 billion francs ($3.2 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities. SINGAPORE, March 20 (Reuters) - Asian stocks steadied and U.S futures rose on Monday in relief at a weekend rescue deal for Credit Suisse and a concerted effort from central banks to shore up the mood, though trade was tense and volatile as contagion fears stalked financial shares.

MAS' statement on Credit Suisse's operations in Singapore after the announced takeover by UBS Group AG.

Asian financial authorities say Swiss lender's takeover not likely to affect stability of local banks.

China’s blue-chip CSI300 and Shanghai Composite Index made gains, as new monetary-easing measures by Beijing helped to offset the concerns about global banking. “The exposures of the local banking sector to Credit Suisse are insignificant,” HKMA said in a statement. “The Hong Kong banking sector is resilient with strong capital and liquidity positions.

Asia Pacific markets edged slightly lower on Monday morning as investors reacted to news of a Credit Suisse bailout by its bigger rival UBS.

The Dow [(INDU)](https://money.cnn.com/data/markets/dow/?source=story_quote_link) fell 1.2%, and the S&P 500 [(SPX)](https://money.cnn.com/data/markets/sandp/?source=story_quote_link) shed 1.1%. The Nasdaq Composite [(COMP)](https://money.cnn.com/data/markets/nasdaq/?source=story_quote_link) dipped 0.7%. US stock futures rose on Sunday night following the news. “Their overall exposures to the Hong Kong market are not significant.” The S&P/ASX 200 in Australia slipped 0.8%. [(N225)](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link) index fell 0.7%, while South Korea’s Kospi [(KOSPI)](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link) was flat in morning trade. [another day of losses](https://www.cnn.com/business/live-news/stock-market-credit-suisse-svb-banking-collapse-03-17-23/h_eee0672e6f5293070c4a5c89702e2049) on Wall Street on Friday, as investors continued to fret over the health of the global banking sector. [told a conference](https://www.rba.gov.au/speeches/2023/sp-ag-2023-03-20.html) Monday. [(UBS)](https://money.cnn.com/quote/quote.html?symb=UBS&source=story_quote_link), agreed to buy Credit Suisse [(CS)](https://money.cnn.com/quote/quote.html?symb=CS&source=story_quote_link) in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month. [(HSI)](https://money.cnn.com/data/world_markets/hang_seng/?source=story_quote_link) tumbled 1.5% at its opening. [a statement](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230320-3/), adding that the assets of Credit Suisse’s local branch were worth approximately 100 billion Hong Kong dollars ($12.7 billion) or “less than 0.5% of the total assets of the Hong Kong banking sector.” [Credit Suisse bailout](https://www.cnn.com/2023/03/19/business/credit-suisse-ubs-rescue/index.html) by its bigger rival UBS.

Swiss regulators announced that UBS, Switzerland's largest bank, would take over the troubled Credit Suisse.

But in this case, owners of stock in Credit Suisse received one UBS share for every 22.48 shares they owned, according to the terms of the deal. Some investors said the deal valued Credit Suisse so cheaply that it could prompt a reassessment of the value of other banks. The UBS acquisition of Credit Suisse, which was brokered by the Swiss authorities, came after another weekend of frenzied activity by U.S. The $3.2 billion acquisition by UBS of Credit Suisse, Switzerland’s oldest bank, was announced on Sunday by the Swiss Financial Markets Supervisory Authority. The central bank is expected to raise interest rates again, turning the screws on an economy already showing signs of slipping from a year of rapid rate rises. A number of small lenders in the United States came under renewed pressure last week.

Banking stocks tumbled on Monday as initial relief over a historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group gave way to ...

"I know that there must be still questions that we have not been able to answer," he said. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said. The MSCI index for financial stocks in Asia ex-Japan Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. regional banks and moral hazard. [(FRC.N)](https://www.reuters.com/companies/FRC.N), an institution rocked by the failures of Silicon Valley and Signature Bank [(SBNY.O)](https://www.reuters.com/companies/SBNY.O). The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. [only global bank](/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) and the Swiss economy more dependent on a single lender. [according to a memo](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to staff seen by Reuters. [moving some assets](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to another bank if concentration was a concern. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) [will pay](/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-16/) 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) and assume up to $5.4 billion in losses. [angering some of the holders](/business/finance/credit-suisse-writes-down-17-bln-bonds-zero-angering-holders-2023-03-19/) of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

(March 20): Moves by authorities to avert a global banking crisis appeared to have lifted market confidence on Monday as investors welcomed emergency dollar ...

The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" in restoring calm. Under the deal with UBS, some Credit Suisse bondholders are major losers. "I know that there must be still questions that we have not been able to answer," he said. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said. US bank deposits have stabilised, with outflows slowing or stopping and in some cases reversing, a US official said on Sunday, adding the problems of Credit Suisse are unrelated to recent deposit runs on US banks and that US banks have limited exposure to Credit Suisse. They now have a new conundrum: 'how much is too much?' for financial stability?"

From Hong Kong to Australia and Singapore, authorities urged that their domestic banking systems were stable.

Overall, IDC's Daruwala said banks in the region have "very, very little" exposure to Credit Suisse. The exposures of the local banking sector to Credit Suisse are insignificant," it added. Credit Suisse customers will continue to have full access to their accounts and "contracts with counterparties remain in force. Swiss regulators played a key role in orchestrating the forced takeover, to stem a larger banking crisis that would threaten the global system. Credit Suisse's operations in the city comprise a branch supervised by the HKMA and two licensed corporations supervised by the Securities and Futures Commission. "Japan, I maintain has been relatively shielded, especially from Credit Suisse." The slew of headlines around the global banking turmoil have heightened volatility and investor fears of a broader crisis. "All of them will open for business today as usual. . . regulators backstopping SVB's uninsured deposits ](https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html)and offering new funding for troubled banks. "The total assets of Credit Suisse, Hong Kong Branch amounted to about HK$100 billion, representing less than 0.5% of the total assets of the Hong Kong banking sector. The deal was announced before markets opened Monday.

François Villeroy de Galhau said French banks 'a strong grip on risk' © Bloomberg. France's central bank governor has insisted the health of the French ...

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Shares plunged by almost 62%, while the value of Tier 1 bonds fell to 1 cent on the dollar.

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Falling prices in Asia and Europe drag down FTSE by 1.5% as UBS plunges 12%

“Focus is shifting to the implications of high-risk bond holders in banks, after holders of more risky Credit Suisse debt saw their investment wiped out. “In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier One [AT1] be required to be written down. Bank of East Asia fell 3.5%. [HSBC](https://www.theguardian.com/business/hsbcholdings) and Standard Chartered tumbled in the Asian stock market as details of UBS’s $3.2bn (£2.65bn) “emergency takeover” of Credit Suisse rattled global investors. [Banking](https://www.theguardian.com/business/banking) Authority and ECB Banking Supervision said they welcome the “comprehensive set of actions taken yesterday by the Swiss authorities”. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) deal hasn’t changed their position on the hierarchy of debt when a bank fails.

Credit Suisse's largest shareholder confirmed to CNBC that it had suffered a loss of around 80% on its investment.

1.7% of SNB's investments portfolio," the Saudi National Bank said in a statement. Saudi National Bank chairman Ammar Al Khudiary on Wednesday was asked by Bloomberg if it would increase its stake in the troubled Swiss lender. The messy fallout, which spilled over across the entire banking sector, has ruptured market confidence and stoked fears of another global banking crisis. Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Shares of the lender were up 0.58% on Monday at 9:30 a.m. His comments ultimately failed to stem the bank's continued rout. - Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Norway's sovereign wealth fund, Norges Bank Investment Management, is also a major shareholder. Shares of the lender were up 0.58% on Monday at 9:20 a.m. QIA did not reply to a request for further details. The significant discount comes as regulators try to shore up the global banking system. Shares of UBS, Switzerland's largest bank, traded down 10.5% at 9:28 a.m.

We'll send you a myFT Daily Digest email rounding up the latest UBS Group AG news every morning. UBS shares tumbled more than 10 per cent in early trading ...

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Despite bold proclamations from Swiss authorities and central banks about a return to stability, the deal does not appear to have laid to rest concerns ...

"But in our view, it has become harder to assess the attractiveness of the current historically large spread pick-up provided by AT1 bonds vs. This could set in train renewed jitters about the health of banks." "This solves what I think is probably an idiosyncratic problem at Credit Suisse, but I'm not sure it's a firebreak big enough to stop the rot for the market," he said Monday. James Sym, head of equities at London-based investment manager River and Mercantile, told CNBC that the market was in "seek and destroy mode." "They are designed to impose permanent losses on bondholders or be converted into equity if a bank's capital ratios fall below a predetermined level, effectively propping up its balance sheet and allowing it to stay in business. The deal also includes support from the Swiss government, financial regulator FINMA, and the Swiss National Bank (SNB), which will offer a liquidity line of up to 100 billion Swiss francs, backed by a federal default guarantee. But as we discussed on Friday, we take comfort from the limited contagion from U.S. "Of course, we are mindful that the situation among U.S. The government will offer a loss guarantee of up to 9 billion Swiss francs, with UBS assuming the first 5 billion of potential losses. The U.S. hit us at the most unfavorable moment." bank has shifted back to an overweight allocation on European banks as a result.

SINGAPORE: Equity futures and Asian stocks struggled to stabilise on Monday as a weekend deal to rescue Credit Suisse and promises of liquidity from central ...

Two-year yields, which fell back to 3.87% are a long way below the current Fed funds rate of 4.6%, suggesting investors see rates falling soon. "It's pretty wild and there's a lot of volatility probably still to come," said Jason Wong, strategist at BNZ. But first First Republic also had its credit rating pushed deeper into junk status by S&P Global and elsewhere efforts to raise capital were hitting difficulties. One positive on Monday was that nobody drew on the Bank of Japan's dollar supply. "This week we've moved over to Europe and we're looking at assets ... lenders to large systemic bank in the heart of Europe, investors do not feel like taking risks.

UBS Chairman Colm Kelleher said the acquisition was “attractive” for UBS shareholders, but clarified that, “as far as Credit Suisse is concerned, this is an emergency rescue.”.

The size of Credit Suisse was a concern for the banking system, as was its global footprint given its multiple international subsidiaries. This could set in train renewed jitters about the health of banks." "Acquiring Credit Suisse's capabilities in wealth, asset management and Swiss universal banking will augment UBS's strategy of growing its capital-light businesses." The bank's Chairman Colm Kelleher said the acquisition was "attractive" for UBS shareholders but clarified that "as far as Credit Suisse is concerned, this is an emergency rescue." Credit Suisse shares collapsed by 60% at around 9:05 a.m. London time (5:05 a.m.

LONDON (AP) — Credit Suisse shares plunged Monday after Swiss authorities cut a deal with its bigger rival UBS to acquire the troubled bank at a marked-down ...

bank collapses and the danger to Credit Suisse was “an international banking crisis in the making.” “The banking system of Europe has not fully recovered from the crisis” in 2008, he said. [Silicon Valley Bank and Signature Bank](/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) in the U.S., including high interest rates. But concerns about risks to the deal, losses for some investors and Credit Suisse’s falling market value could renew However, Credit Suisse weathered the 2008 financial crisis without assistance, unlike UBS. banks](/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf). [Shares of Credit Suisse](/article/credit-suisse-banking-shares-plunge-switzerland-ba1861aa8b61170c00a2789287dc9a08), whose woes stem from questions over its internal controls, closed nearly 56% lower a day after UBS said it would buy its fellow Swiss bank for a lowball price of 3 billion Swiss francs ($3.25 billion). UBS is bigger but Credit Suisse wields considerable influence, with $1.4 trillion assets under management. Analysts say some previous forced bank mergers didn’t work out well for shareholders in the long run. failures have raised questions about other potentially weak global financial institutions, sweeping up the already beleaguered Swiss bank. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further [upheaval in the global financial system](/article/banks-federal-reserve-silicon-valley-lending-rescue-a04875a164165b50e971ff4576bf4e27). The shares traded at about the level they are valued at in the deal.

UBS pays about three billion Swiss francs (RM14.52 billion) in stock · Swiss National Bank provides a 100 billion-franc liquidity line · The Swiss government ...

Executives were already under fire for failing to protect the bank and wealthy clients from the collapse of a US$10 billion suite of funds it ran with now-disgraced financier Lex Greensill. As part of an investigation prompted by the Khan episode, the Swiss banking regulator in October 2021 uncovered five additional cases of surveillance from 2016 to 2019. In 2015, a fraud perpetrated by a private banker who had no clients and no banking experience before joining Credit Suisse was exposed. “In Zurich, we’ve had a ring-side seat to this spectacular fiasco in slow motion,” said Matthew Ruesch, the founder and managing partner of Broad Creek Capital, a family office. The once-lucrative industry had imploded, and one of the most problematic deals was a US$457 million loan for the leveraged buyout of Ohio Mattress Co. Winterthur was then sold in 2006 by then CEO Oswald Gruebel, who ran the bank alongside John Mack for a brief stretch. The takeover was part of an aggressive growth strategy, including acquisitions of Swiss rivals, and the complexity kept growing. The combined assets of UBS and Credit Suisse are roughly double the size of Switzerland’s gross domestic product, and Sunday newspapers from tabloids to broadsheets were filled with stories about the looming demise of a national icon. “Unfortunately, the loss of confidence from the markets and customers was no longer able to be halted.” It tended the fortunes of Arab royals and Russian oligarchs and tilted at the giants of Wall Street. With the country’s banking sector at risk, Swiss authorities stepped in to push UBS to become a reluctant white knight. After tense talks over the weekend, UBS Group AG agreed to buy Credit Suisse in an all-share deal for about US$3.25 billion (RM14.58 billion), less than the market value of troubled US lender First Republic Bank.

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 ...

* Japan's yen rallied as investors sought out safe assets. Credit Suisse staff also fretted over the future amid "business as usual". * Under the deal, 16 billion Swiss francs ($17 billion) of Credit Suisse's Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator. * The Swiss Bank Employees Association said it was "deeply shocked" by the takeover and called on UBS to keep job cuts to an "absolute minimum". UBS agreed to buy rival bank Credit Suisse on Sunday for 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities. 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.

“In my eyes, this is against the law,” said Patrik Kauffman, a fund manager at Aquila Asset Management, who invests in additional tier 1 (AT1) bank debt.

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(March 20): Banking stocks and bonds fell sharply on Monday (March 20) as the hit to investors from UBS Group's state-backed takeover of Credit Suisse ...

New York Community Bancorp shares surged 36% at the Wall Street open. In a global response not seen since the height of the pandemic, the US Federal Reserve said it had joined central banks in Canada, Britain, Japan, the euro zone and Switzerland in a co-ordinated action to enhance market liquidity. Investor focus in Europe shifted to the massive blow some Credit Suisse bondholders will take, prompting euro zone and UK banking supervisors to try to stop a rout in the market for convertible bank bonds. Hogan said a deal on Sunday for a unit of New York Community Bancorp to buy deposits and loans from the failed Signature Bank also boosted sentiment in US banks. "First and foremost, the Credit Suisse, UBS merger certainly takes a lot of stress out of the global banking system," Hogan said. (March 20): US banking stocks rose on Monday (March 20) and Europe's lenders recovered from a sharp early sell-off after UBS Group's state-backed takeover of Credit Suisse appeared to close off one source of worry for the global banking sector.

ZURICH (March 20): Credit Suisse and UBS could benefit from more than 260 billion Swiss francs (RM1.2 trillion) in state and central bank support, ...

UBS and Credit Suisse were both in a group of the 30 global systemically important banks watched closely by regulators. Credit Suisse said last Wednesday it would take 50 billion francs from the scheme, which provides funding secured against collateral such as mortgages and securities. That loan is protected in the event of a default.

Decision over bonds rips up convention and could undermine confidence in banking system.

Since there are reckoned to be $275bn (£224bn) of these instruments in issue around the world, it is not a small market to mess with – thus other regulators’ scramble to say nothing has changed in their back yards. But the long-term impact of the ATI affair is the big unknown. The problem is solely the ripping-up of the hierarchy of financial pain. One could take the view that shareholders are getting only a tiny sum of less than a franc a share but, by rights, the figure ought to be zero. And the terms, at face value, look generous to UBS, so the risk of creating a bigger banking whirlpool is lessened. [do the deal over a weekend](https://www.theguardian.com/business/2023/mar/19/credit-suisse-bank-of-england-wont-object-to-takeover-as-ubs-considers-1bn-bid).

The Swiss government has come under fire from bondholders and international regulators for its handling of the $3.2bn rescue-takeover of Credit Suisse by ...

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For most people in Switzerland, the news that Credit Suisse was to be saved from collapse by local rival UBS was met with stunned disbelief.

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Investors responded in kind. In Europe, UBS shares rose 1.02% (though Credit Suisse tanked 55.74%, making each share worth less than $1). Banking stocks in the ...

[managed to rebound](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). [First Republic Bank continued sinking](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). All [major indexes made minor gains](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html). Bondholders, unsurprisingly, [aren't happy about it](https://www.cnbc.com/2023/03/20/17-billion-of-credit-suisse-bonds-worthless-following-ubs-takeover.html). [UBS to buy Credit Suisse](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), with an aim [to increase confidence in the banking sector](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html). The banking crisis is causing regional banks — which account for around a third of all lending in the United States — to reduce their loans, said Eric Diton, president and managing director of The Wealth Alliance. This suggests markets are already so jittery that whatever the Fed does — even if it's nothing — it might cause instability to spread. New York Community Bancorp (which [agreed to buy Signature Bank](https://www.cnbc.com/2023/03/20/fdic-announces-agreement-to-sell-signature-bank-assets.html)over the weekend) surged 31.65%, PacWest Bancorp jumped 10.78% and KeyCorp edged up 1.21%. Some bank stocks are in the doldrums, yes, but the SPDR S&P Regional Banking ETF, a fund of regional bank stocks, rose 1.11% on Monday. To stem the rout, [JPMorgan Chase is advising First Republic](https://www.cnbc.com/2023/03/20/jpmorgan-advising-first-republic-on-strategic-alternatives-including-a-capital-raise-sources-say.html)on strategic alternatives such as raising capital or attempting a sale, sources told CNBC's David Faber. The Dow Jones Industrial Average gained 1.2%, the S&P 500 added 0.89% and the Nasdaq Composite increased 0.39%. Banking stocks in the [pan-European index, Stoxx 600](https://www.cnbc.com/2023/03/20/european-markets-live-updates-ubs-buys-credit-suisse-news-stocks.html), were up 1.3%, giving the index a 1% gain.

Days before a hastily convened press conference late on Sunday that would make the world's front pages, Switzerland's political elite were secretly ...

"When you are a bank for billionaires, deposits can fly away very quickly," said one of the people involved. A spokesperson for FINMA said that although it laid emphasis on Britain and the U.S. "The taxpayer in this scenario has less risk," said Keller-Sutter. In banking center Zurich and Bern, the Alpine state's capital, pressure was building. Credit Suisse banks many Swiss companies and citizens - including finance minister Keller-Sutter. Credit Suisse's arms in Luxembourg, Spain and Germany were far smaller. By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis. In a matter of days its demise was sealed. It's a completely different ecosystem." monitored on a daily basis," he told Reuters. "They're a globally systemically important bank so ... The rescue concentrates even greater risks into one banking behemoth, UBS Group AG.

European markets are heading for a fall at Monday's open, with regional markets lacking direction at the start of the new trading week.

stock futures](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html) were mixed. London time after the [latter agreed to an emergency takeover](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) of its embattled rival. The combined bank will have $5 trillion of invested assets, according to UBS. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. [Credit Suisse](/quotes/CSG.N-CH/) shares were down 61.95% in pre-market trade via private bank Julius Baer, Reuters reported at 8:14 a.m. [Asia-Pacific markets largely fell on Monday](https://www.cnbc.com/2023/03/20/asia-markets-ubs-credit-suisse-china-loan-prime-rates.html), with eyes firmly on the European banking situation. CET to suspend trading in its shares. [UBS](https://www.cnbc.com/quotes/) [takeover](https://www.cnbc.com/2023/03/20/ubs-shares-tumble-after-emergency-rescue-of-rival-credit-suisse.html) of [Credit Suisse](/quotes/CSG.N-CH/). Credit Suisse has until the Swiss market open at 9:00 a.m. Following the emergency rescue, the combined bank will have $5 trillion of invested assets, according to UBS. [UBS](/quotes/UBS/) finalized an [agreement](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) to buy its rival [Credit Suisse](/quotes/CS/) for $3.2 billion.

U.S. Treasury yields rose on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse.

[finalized the takeover of Credit Suisse by UBS](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), the two largest Swiss banks. [joint liquidity operation with several other central banks](https://www.cnbc.com/2023/03/19/fed-other-central-banks-set-joint-liquidity-operation.html) around the world. "Our expectation is that the FOMC will raise the policy rate by 25bps, not 50bps," said Thierry Wizman, global FX and rates strategist at Macquarie. The Fed's next meeting is due to begin Tuesday, with a fresh interest rate policy decision expected Wednesday. The [2-year Treasury](/quotes/US2Y/) yield was trading at around 3.96% after rebounding to trade 11 basis points higher. The ETF at one point rose 5% during Monday's trading session, but saw some of its gains reverse as First Republic shares slide 47%.

The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.

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ONCE the world knows a bank is in government-led talks about a rescue deal, then it's a deal that has to be done.

But it will still be a tricky job with some tough choices and UBS might end up holding on to some of this business longer than it wants. UBS is protected by having wiped out most of Credit Suisse’s equity and all its junior bonds, along with the government guarantee. And he’s determined to keep the domestic Swiss bank. RWA is the measure used to assess a bank’s capital needs. UBS chairman Colm Kelleher told reporters that it would cut Credit Suisse’s investment bank significantly. The whole deal was welcomed by the central banks of the United States, United Kingdom and Europe as well – each fretting about the potential for further fallout from a Credit Suisse collapse. Credit Suisse was vulnerable because its shares had been battered by concerns about its long-term profitability and a prolonged period of uncertainty about its strategy had led to a loss of bankers and business. Despite the risks, UBS is getting a bank that was not finally brought down by bad assets but by a wave of liquidity fears rolling around the world. The faster UBS looks to sell assets out of Credit Suisse’s investment bank, the greater the losses it would have to take. However, UBS might also view a lot of the capital Credit Suisse carries for operational risks as being attached to its investment bank. The cost to Credit Suisse stock and junior bondholders and to the Swiss government covers a lot of potential asset losses. Based on accounts from the end of 2022, the deal increases UBS’s total assets by 52% to about 1.6 trillion francs (US$1.7 trillion or RM7.6 trillion), but it increases risk-weighted assets (RWA) by 78% to 570 billion francs (RM2.8 trillion).

ZURICH: Holders of Credit Suisse Group AG bonds suffer a historic loss as a takeover by Union Bank of Switzerland (UBS) Group AG wipes out about 16 billion ...

In that instance, the equity was also written off. Meanwhile, the bank’s shareholders are set to receive three billion francs (RM15bil). In a typical write-down scenario, shareholders are the first to take a hit before AT1 bonds face losses, as Credit Suisse also guided in a presentation to investors earlier this week. “This will be a total blow to the AT1 market. The bond wipe out is the biggest loss yet for Europe’s US$275bil (RM1.2 trillion) Additional Tier-1 (AT1) market, far eclipsing the only other write-down of this type of security to date – a €1.35bil (US$1.44bil or RM6.5bil)) loss suffered by junior bondholders of Spanish lender Banco Popular SA back in 2017, when it was absorbed by Banco Santander SA for one euro to avoid a collapse. The deal will trigger a “complete write-down” of the bank’s additional Tier-1 bonds in order to increase core capital, the Swiss Financial Market Supervisory Authority (Finma) said in a statement on its website.

LONDON: European banking stocks slumped yesterday as investors reeled from the historic weekend takeover of Credit Suisse Group AG that will wipe out a ...

The turmoil is now raising fears of a widespread fallout in the economy. “The UBS acquisition of Credit Suisse in our view eliminates immediate sector tail risks, but it also raises questions,” Jefferies Financial Group Inc analysts including Flora Bocahut wrote in a note. Sentiment started turning sour on March 9 as Silicon Valley Bank collapsed, followed by the meltdown in shares of Credit Suisse last week. Credit Suisse’s AT1 bonds written off to zero could spook holders of these types of securities at other banks, they wrote. An exchange-traded fund that invests in the securities, Invesco AT1 Capital Bond UCITS ETF, plunged 17% in London trading.More broadly, the takeover of the 166-year-old Swiss lender is only adding to investor jitters following the failures of Silicon Valley Bank and Signature Bank in the United States this month. Wall Street’s biggest lenders fell in US pre-market trading, with JPMorgan Chase & Co shares dropping 1.6% and Wells Fargo & Co declining 2.6% Bank of America Corp lost 2.1% and Citigroup Inc slipped 1.8%.

GENEVA: UBS' emergency takeover of its troubled Swiss rival Credit Suisse, with significant backing and arm-twisting from Bern, sparked fears on Monda...

They closed the day up 1.3% at 17.33 Swiss francs per share. “A zombie is disappearing, but a monster is in the process of being born.” – AFP Many acknowledged though that there had been little choice. The Tages-Anzeiger daily decried the deal as “a historic scandal”, while the Tribune de Geneve said it was a “waste, socially (for jobs), economically (for the reputation of the country), and shameful politically for the politicians who were too slow to act”. Thierry Burkart, head of Switzerland’s rightwing Liberals party, meanwhile described Sunday as “a dark day for the Swiss financial sector and for Switzerland as a whole”. Balthasar Glattli, head of the Green Party, which wants new rules for regulating banks like Credit Suisse and UBS that are considered too big to fail, warned on Monday that the new UBS would be “a monster that is too big to bail”.

PETALING JAYA: The total fund size of AHAM Asset Management Bhd's AHAM Single Bond Series 2 and AHAM Single Bond Series 4 represent less than 0.1% of the ...

AHAM Asset Management said this has a direct impact on AHAM Single Bond Series 2 (formerly known as Affin Hwang Single Bond Series 2) where the underlying bond is the CS 6.375% AT1; and AHAM Single Bond Series 4 (formerly known as Affin Hwang Single Bond Series 4) where the underlying bond is the CS 5.25% AT1. In a statement to its investors, AHAM Asset Management said it would be suspending the dealing of units of its AHAM Single Bond Series 2 and AHAM Single Bond Series 4 funds. PETALING JAYA: The total fund size of AHAM Asset Management Bhd’s AHAM Single Bond Series 2 and AHAM Single Bond Series 4 represent less than 0.1% of the firm’s total assets under administration of RM77bil as at Feb 28, 2023.

(March 20): For decades, Switzerland has sold itself as a haven of legal certainty for bond and equity investors. The collapse of Credit Suisse Group AG ...

The country “is not endangered, but there might be the risk of lawsuits” because authorities “intervened here on very thin ice”. AT1 bonds were introduced after the global financial crisis to ensure losses would be borne by investors not taxpayers. The collapse of Credit Suisse Group AG revealed some unpleasant home truths.

Credit Suisse's domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, ...

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We'll send you a myFT Daily Digest email rounding up the latest World news every morning. Good morning. This article is an on- ...

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US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks ...

Chair of Single Resolution Board adamant Brussels will not take investors in bank debt 'by surprise'

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