Wednesday, March 22, 2023

Credit Suisse: UBS examines Credit Suisse acquisition amid US banking collapse: What you need to know – Usky News

UBS AG was investigating a takeover of Credit Suisse on Saturday as the embattled lender faced a weekend amid market turmoil from the collapse of US bonds. Silicon Valley Bank and Signature Bank.
A takeover of Credit Suisse by UBS could lead to the Swiss government offering a guarantee against the risks involved, two people with knowledge of the matter said on Saturday.
* The boards of the two banks were set to meet separately over the weekend, a source said, adding that Swiss regulators are encouraging the pair to merge but neither bank wants to do so.
* At least four major banks, including Societe Generale and Deutsche Bank, are restricting new trades involving Credit Suisse or its securities, five sources told Reuters.
* US investment giant BlackRock denied a report by the Financial Times that it was participating in a rival bid for all or part of Credit Suisse.
* ECB Governing Council member Pierre Wunsch does not expect a repeat of the 2008 financial crisis despite unrest caused by the collapse of Silicon Valley Bank, arguing that European banks were subject to tougher regulations than regional US banks.
* Goldman Sachs cut its recommendation on European bank debt risks to neutral from overweight, saying a lack of clarity on Credit Suisse’s future path will pressure the broader sector.
, svb The financial conglomerate filed for court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after regulators took over its former entity Silicon Valley Bank (SVB).
* The US Federal Deposit Insurance Corp (FDIC) is considering moves to facilitate acquisitions of Signature Bank and Silicon Valley Bank, a source told Reuters.
* Moody’s downgraded the debt rating of First Republic Bank. Ahead of the announcement, the bank’s shares fell about 33%, snapping an 80% decline in the previous 10 sessions, despite a $30 billion deposit bailout package by large US banks.
* US President Joe Biden urged Congress to give more power to bank regulators.
* A senior official at the People’s Bank of China said the collapse of the SVB showed that rapid changes in monetary policy were causing spillover effects, state-owned newspaper Shanghai Securities News reported.
* Investor sentiment remained weak on Friday, keeping global equities under pressure, while gold prices registered their biggest one-week rally in three years. The dollar slipped and Treasury yields fell.
* As concerns grow over banks, investors are seeking protection against a market crash


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