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LONDON, May 18 (Reuters) - Credit Suisse (CSGN.S) came close to falling below minimum levels of cash held at the Swiss central bank days before its forced takeover by UBS (UBSG.S), a regulatory document shows. As of mid-March 2023, Credit Suisse barely reached its internal cash limit at the Swiss National Bank. Credit Suisse was forced into a government orchestrated rescue on March 19. FINMA and Credit Suisse declined to comment. FINMA stated in the decree that a viability event occurred and that Credit Suisse could therefore wipe out the instruments.

Shareholders of Credit Suisse and UBS were not granted a vote on the deal that was sealed over one weekend in March. Officials for QIA, UBS, the Swiss finance ministry and Credit Suisse declined to comment. QIA's investment in Credit Suisse dates back to the global financial crisis of 2008. The sovereign wealth fund had increased its stake in Credit Suisse to just under 7%, only trailing largest shareholder Saudi National Bank's roughly 10% stake, according to a January filing. Among them, Middle Eastern backers which own more than 20% of Credit Suisse face the largest hit.

☆ Factbox: When are the Eurovision Song Contest semi-finals and final?
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +3 min

LIVERPOOL, England, May 9 (Reuters) - Eurovision 2023 has kicked off in Liverpool, northern England, where acts from 37 countries are competing to win the 67th edition of the song contest. There are 37 countries taking part with 31 competing in two semi-finals and 10 going through to the Grand Final. Ukraine, as the previous winner, automatically progresses to the Grand Final, along with the "big five", comprising the United Kingdom, France, Germany, Spain and Italy. Semi-final 1: viewers in the 15 countries taking part are eligible to vote, alongside France, Germany, and Italy. Semi-final 2: Viewers in the 16 countries taking part are eligible to vote, alongside Spain, Ukraine, and the UK.

☆ Eurovision 2023 opens with acts walking Liverpool's 'Turquoise Carpet'
▼ + stars: | 2023-05-07 | by ( ) www.reuters.com time to read: +1 min

LIVERPOOL, England, May 7 (Reuters) - Eurovision 2023 kicked off on Sunday when 37 contenders walked the "Turquoise Carpet" in Liverpool, the English city hosting the competition on behalf of Ukraine. The "Turquoise Carpet" is Eurovision's version of the red carpet. Ukraine was last year's winner but was unable to stage the event this year, as the winner usually does, because of Russia's invasion. The other 31 contenders will compete in semi-finals on Tuesday and Thursday for 20 places in the grand final. Reporting by Steve Hignett; Writing by Paul Sandle; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

Fabrizio Campelli, who oversees Deutsche's investment bank, said it had been looking to grow its business in Britain. Deutsche Bank shares rose as much as 2.5% in early trade before erasing gains. MOVING INAs part of the deal, 35 Deutsche Bank corporate finance employees will move in with more than 300 London-based Numis staff. As part of its strategy, Deutsche Bank - a leading bank in Germany with strong European roots - said earlier this week that it aims to accelerate "growth initiatives" including potential acquisition of portfolios and assets. Britain is the largest investment banking market in Europe and Numis is a diversified investment bank with a UK franchise.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

Media coverage of BDO's warning on March 1 prompted immediate questions from financial regulators, a March 6 letter to Reuters from Revolut shows. The letter did not address the banking licence application nor its status. "I would be astonished if the regulators go ahead with the banking licence," he added. Revolut applied for a banking licence about two years ago. With a banking licence, Revolut would become a more established player in the U.K. banking market and be able to draw more customers.

[1/2] A logo of the Swiss bank UBS is seen on the Paradeplatz in Zurich, Switzerland March 21, 2023. Representatives for UBS and Credit Suisse declined to comment. The longer the deal takes to close, the harder it could be for Credit Suisse to hold on to its business. The United Kingdom, where Credit Suisse has $60 billion of risk-weighted assets primarily in its investment banking division, is one of its biggest markets outside of Switzerland. John Glen, chief secretary to the UK Treasury, said last week he did not have any immediate concerns about the execution of Switzerland's Credit Suisse rescue by UBS.

Ermotti may need to persuade Switzerland's authorities that UBS should keep "the piece de resistance," Credit Suisse's domestic bank, said Porta's Wittmann. During the financial crash of 2008 it was UBS, not Credit Suisse, that took the lion's share of support from the state. One of Ermotti's biggest challenges may be to prevent Credit Suisse's problems contaminating UBS, which will involve hacking back its investment bank and its unwieldy derivatives. Disentangling Credit Suisse's finances, however, is only a part of the problem. "There are clearly parts of Credit Suisse that have had a bad culture.

Last week, at least four major banks restricted new trades involving the Swiss bank or its securities while Credit Suisse worked to restore investor confidence and stop its shares from plummeting. A leveraged finance banker said that they were scrutinizing debt issuances that banker was an agent for to see if they are affected by Credit Suisse. Credit Suisse declined comment. Since the turmoil facing Credit Suisse and regional banks began, banks have put much of their previously planned underwriting on hold until market volatility dies down, the leveraged finance banker said. They are not the only ones treading cautiously with Credit Suisse.

But combining Credit Suisse into UBS could take much longer, potentially months, because the deal needs approval from regulators in tens of countries, the people said, seeking anonymity given the sensitivity of the matter. Spokespeople for UBS and Credit Suisse declined to comment. The longer the deal takes to close, the harder it will be for Credit Suisse to hold on to its business as the uncertainty erodes confidence in the lender. Bank of America's electronic stocks desk had halted trading with a desk at Credit Suisse that uses computer-led strategies, an email seen by Reuters on Monday said. Bloomberg News reported on Thursday that Wall Street banks and European firms are lifting hiring freezes to lure staff from Credit Suisse.

[1/2] The logo of the Swiss bank Credit Suisse is seen in Zurich, Switzerland March 20, 2023. While the nation's central bank and financial regulator publicly declared that Credit Suisse was sound, behind closed doors the race was on to rescue the nation's second-biggest bank. The Swiss National Bank declined to comment while the finance ministry did not respond to a request for comment. Battered by years of scandals and losses, Credit Suisse for months had been battling a crisis of confidence of its own making. By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis.

ZURICH, March 21 (Reuters) - Swiss authorities imposed curbs on bonus payments for Credit Suisse (CSGN.S) employees, a move that will penalise bankers after a multi-billion-franc state rescue of the bank. Credit Suisse declined to comment. Battered by years of scandals and losses, Credit Suisse for months had been battling a crisis of confidence. The bank's bonus pool shrank by 50% in 2022 to 1 billion Swiss francs, according to its annual report. The Swiss government also instructed its finance ministry to propose further measures on variable remuneration for Credit Suisse.

March 20 (Reuters) - Shares of U.S. lender First Republic tumbled nearly 50% on Monday on fears it will need a second rescue to stay afloat, bucking a broader rally in bank shares driven by UBS Group's state-backed takeover of Credit Suisse. "First and foremost, the Credit Suisse, UBS merger certainly takes a lot of stress out of the global banking system." The 3 billion Swiss franc ($3.2 billion) deal for the troubled Swiss bank - which was once worth more than $90 billion - was engineered by Swiss regulators and announced on Sunday. European bank shares (.SX7P) rebounded from recent losses, while on Wall Street the S&P 500 banks (.SPXBK) index recovered 0.6%. [1/2] Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland March 20, 2023.

In a package engineered by Swiss regulators on Sunday, UBS Group AG (UBSG.S) will pay 3 billion Swiss francs ($3.2 billion) for 167-year-old Credit Suisse Group AG <CSGN.S>, which was once worth more than $90 billion. European bank shares inched into positive territory (.SX7P) while shares in U.S. financial giants Citigroup (C.N) and JPMorgan Chase (JPM.N) rose 1.2% and 0.7% respectively. Investor focus had shifted to the massive blow some Credit Suisse bondholders will take, a new worry in a rolling banking sector crisis sparked by the collapse of midsize-U.S. lenders Silicon Valley Bank (SVB) and Signature Bank (SBNY.O) earlier this month. [1/2] Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland March 20, 2023. QUESTIONS FOR UBSThe deal to buy Credit Suisse will make UBS Switzerland’s only global bank and the Swiss economy more dependent on a single lender.

In a package engineered by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG (CSGN.S) and assume up to $5.4 billion in losses. Investor focus has now shifted to the massive blow some Credit Suisse bondholders will take, adding to anxiety about other banking sector risks including contagion and the fragile state of U.S. regional lenders. UBS acquiring Credit Suisse for 3 billion francs a week ago would have seemed like a terrific deal. Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland March 20, 2023. QUESTIONS FOR UBSThe deal to buy Credit Suisse will make UBS Switzerland’s only global bank and the Swiss economy more dependent on a single lender.

European bank shares slumped, with an index of leading lenders (.SX7P) down 5.8%. Credit Suisse shares slumped 62%, reflecting the huge loss its shareholders will see in their investment in the bank. Monetary authorities in Singapore and Hong Kong, where Credit Suisse hosts large regional offices, separately said the Swiss bank's business continued without interruption. And Credit Suisse urged its staff to go to work, according to a memo to staff seen by Reuters. Credit Suisse staff arriving to work in Hong Kong and Singapore on Monday morning, however, fretted about retrenchments and retaining business.

It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just metres apart. The Credit Suisse rescue, orchestrated with public money, shows banks' continued vulnerability and how their problems can quickly rebound on their home country. But it also removes a competitor to Wall Street, with UBS planning to pare back much of Credit Suisse’s investment bank. During the great financial crash, it was UBS and not Credit Suisse that needed state support. UBS earned $7.6 billion in profit in 2022, while Credit Suisse lost $7.9 billion.

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. There are also concerns about what happens next at Credit Suisse and what that means for investors and employees. The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. Credit Suisse shares had lost a quarter of their value last week. The bank was forced to tap $54 billion in central bank funding as it tries to recover from scandals that have undermined confidence.

☆ UBS mulls sweeteners to keep Credit Suisse wealth bankers - source
▼ + stars: | 2023-03-20 | by ( Stefania Spezzati | ) www.reuters.com time to read: +1 min

LONDON, March 20 (Reuters) - UBS Group AG told Credit Suisse wealth bankers it's weighing financial sweeteners for them to stay as it seeks to reassure key staff following the takeover, a person with knowledge of the matter told Reuters on Monday. In a town hall for Credit Suisse's employees in wealth management in Zurich, Iqbal Khan, UBS's president for global wealth management and Francesco de Ferrari, Credit Suisse's CEO for wealth management, reassured staff on Monday that the two banks will all be acting as a "big family," the person said. Before the deal, Credit Suisse had embarked on a plan to slash 9,000 jobs. That number can grow to 10,000, Reuters has reported as UBS acquires Credit Suisse. UBS said in a presentation that the acquisition will scale up the bank's global wealth and asset management franchise with more than $3.4 trillion in invested assets on a combined basis, according to a press release on Sunday.

The ECB vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" for restoring calm. [1/6] Chairman of the Board of Directors of UBS, Colm Kelleher and Chairman of the Board of Directors of Credit Suisse, Axel Lehmann attend a news conference on Credit Suisse after UBS takeover offer, in Bern, Switzerland, March 19, 2023. The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share for a total consideration of 3 billion francs, UBS said. Under the deal with UBS, some Credit Suisse bondholders are major losers.

March 19 (Reuters) - Talks over rescuing Credit Suisse (CSGN.S) rolled into Sunday as UBS AG (UBSG.S) sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a person with knowledge of the talks said. The guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilise its shaky balance sheet. There were multiple reports of interest for Credit Suisse from other rivals.

The fallout from the crisis of confidence in Credit Suisse Group AG (CSGN.S) and the failure of two U.S. banks could continue to ripple through the financial system next week, the two executives separately told Reuters on Sunday. The two banks have held their own internal deliberations on how soon the European Central Bank should weigh in to highlight banks' resilience, specifically their capital and liquidity positions, the people said. The executives said that their banks and the sector are well capitalized and liquidity is strong, but they fear that the crisis of confidence will sweep up more lenders. But it stressed it was monitoring market tensions and would respond as necessary to preserve price stability and financial stability in the currency bloc. As one of 30 global systemically important banks, Credit Suisse's problems could ripple throughout the entire financial system, industry executives have said.

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