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☆ Credit Suisse CEO memo signals UBS deal to close Monday - Bloomberg
▼ + stars: | 2023-06-10 | by ( ) www.reuters.com time to read: +1 min

June 10 (Reuters) - Credit Suisse Group AG (CSGN.S) Chief Executive Ulrich Koerner has indicated that the emergency takeover of the bank by UBS AG (UBSG.S) will close on Monday, Bloomberg News reported on Saturday, citing an internal memo. "Monday's legal close is the next important step as we work to get you the answers you need as quickly as possible." On Friday, UBS Chief Executive Sergio Ermotti hinted the takeover of Credit Suisse would close on Monday, the earliest expected date. Earlier on Friday, the Swiss government agreed with UBS to guarantee up to 9 billion Swiss francs ($9.96 billion) of losses the bank may incur from the sale of its rival's assets beyond 5 billion francs the lender is due to cover itself. Credit Suisse and UBS did not immediately respond to a Reuters request for comment.

Persons: Ulrich Koerner, " Koerner, Sergio Ermotti, Urvi, Andrew Cawthorne, Mike Harrison Organizations: Credit Suisse Group AG, UBS AG, Bloomberg, UBS, Credit Suisse, Thomson Locations: Swiss, Bengaluru

☆ Credit Suisse CEO memo signals UBS deal to close Monday, Bloomberg reports
▼ + stars: | 2023-06-10 | by ( ) www.reuters.com time to read: +1 min

June 10 (Reuters) - Credit Suisse Group AG (CSGN.S) Chief Executive Ulrich Koerner has indicated that the emergency takeover of the bank by UBS AG (UBSG.S) will close on Monday, Bloomberg News reported on Saturday, citing an internal memo. "Monday's legal close is the next important step as we work to get you the answers you need as quickly as possible." On Friday, UBS Chief Executive Sergio Ermotti hinted the takeover of Credit Suisse would close on Monday, the earliest expected date. Earlier on Friday, the Swiss government agreed with UBS to guarantee up to 9 billion Swiss francs ($9.96 billion) of losses the bank may incur from the sale of its rival's assets beyond 5 billion francs the lender is due to cover itself. UBS declined to comment, while Credit Suisse did not immediately respond to a Reuters request for comment.

Persons: Ulrich Koerner, " Koerner, Sergio Ermotti, Urvi, Andrew Cawthorne, Mike Harrison, Louise Heavens Organizations: Credit Suisse Group AG, UBS AG, Bloomberg, UBS, Credit Suisse, Thomson Locations: Swiss, Bengaluru

☆ Countdown to mega merger - how Credit Suisse wobbled and UBS rushed to rescue
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +6 min

March 19: An emergency rescue of Credit Suisse, brokered by the Swiss government, central bank and financial regulator, is announced. March 23: Switzerland's financial market regulator FINMA defends its decision to impose steep losses on Credit Suisse bondholders, calling the decision legally watertight. Separately, some holders of Credit Suisse AT1 bonds wiped out by the merger instruct lawyers to represent them for possible litigation to recover losses. April 6 - UBS CEO Ermotti tells Credit Suisse staff to stay focussed on the business, but warns of "change and hard decisions" ahead. April 15 - The Federal Reserve approves UBS's acquisition of the U.S. subsidiaries of Credit Suisse.

Persons: Greensill, FINMA, Sergio Ermotti, Axel Lehmann, Ulrich Koerner, Ermotti, John Revill, Tomasz Janowski Organizations: UBS, Credit Suisse, Suisse, U.S . Securities, Exchange Commission, SEC, Silicon Valley Bank, Swiss National Bank, Saudi National Bank, Credit, Swiss Bank Employees Association, Federal Reserve, Court, Switzerland's Social Democratic Party, Thomson Locations: ZURICH, Silicon, Swiss, Switzerland

☆ UBS CEO warns of painful jobs decisions after Credit Suisse takeover
▼ + stars: | 2023-06-02 | by ( John Revill | ) www.reuters.com time to read: +2 min

BERN, June 2 (Reuters) - UBS (UBSG.S) Chief Executive Sergio Ermotti on Friday warned of painful decisions about job cuts following the takeover of Credit Suisse (CSGN.S), which he said he hoped would be formalised in coming days. Synergies is part of the story," Ermotti said at an event organised by the Asset Management Association Switzerland in Bern. That management reshuffle only saw Credit Suisse CEO Ulrich Koerner joining the top leadership. Switzerland's Social Democratic Party has drawn up proposals to shrink UBS assets after its takeover of Credit Suisse to reduce the risk of another expensive state-backed rescue. "I don't think we are too big for Switzerland," Ermotti said, adding that in banking "size matters."

Persons: Sergio Ermotti, Ermotti, Ulrich Koerner, John Revill, Tomasz Janowski Organizations: UBS, Credit Suisse, Asset Management Association, Swiss, Switzerland's Social Democratic Party, Thomson Locations: BERN, Bern, Switzerland

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.

Besides Koerner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Commenting on Koerner's future role, UBS said Koerner would be responsible for Credit Suisse's operational continuity and client focus, while supporting its integration. Credit Suisse executive board members will report to both their relevant UBS executive board member and Koerner. Reuters reported last week that options under consideration for that business include a sale or an initial public offering of Credit Suisse's domestic unit. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry," Ermotti said in the statement.

☆ UBS says Credit Suisse CEO Koerner to join leadership of combined group
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +1 min

ZURICH, May 9 (Reuters) - UBS Group (UBSG.S) said on Tuesday Credit Suisse CEO Ulrich Koerner will join the executive board of the combined bank once it closes its takeover of its Swiss rival, while Todd Tuckner will replace Sarah Youngwood as chief financial officer. The leadership reshuffle follows the government-orchestrated rescue of Credit Suisse (CSGN.S), which UBS agreed to takeover in March for 3 billion Swiss francs ($3.4 billion), saying it would assume up to 5 billion francs in losses as part of a rescue backed by as much as 250 billion francs of state support. Commenting on Koerner's future role, UBS said he had knowledge of both organisations and would be responsible for Credit Suisse operational continuity and client focus, while supporting its integration. UBS reiterated that it will evaluate all options for Credit Suisse’s Swiss business and will "communicate further on this matter in the coming months." Reporting by Tomasz Janowski; Editing by Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

☆ UBS says Credit Suisse CEO Ulrich Koerner will join its board
▼ + stars: | 2023-05-09 | by ( ) edition.cnn.com time to read: +4 min

Besides Körner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Some media had speculated that a number of Credit Suisse bankers would take up senior roles at the new group. Credit Suisse executive board members will report to both their relevant UBS executive board member and Körner. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry,” Ermotti said in the statement Tuesday. Zuercher Kantonalbank said this meant there would be initially no big changes for the current Credit Suisse management.

☆ UBS announces Credit Suisse CEO Koerner to join board after emergency rescue
▼ + stars: | 2023-05-09 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

UBS on Tuesday announced that Credit Suisse CEO Ulrich Koerner will join the executive board of the new joint entity once its emergency purchase of the stricken bank completes. The Credit Suisse brand will operate independently for the "foreseeable future" as UBS integrates the business in a "phased approach," the bank said in a statement. Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March, as a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution. UBS confirmed that it will initially manage the two separate companies upon the closure of the deal, with each institution continuing to operate its own subsidiaries and branches while the UBS board of directors and executive board will hold overall responsibility for the consolidated group. Koerner, who took over the ailing Credit Suisse in July 2022 and immediately launched a massive strategic overhaul aimed at reversing the bank's chronic loss-making and risk management failures, will join the board, UBS confirmed.

ZURICH, April 4 (Reuters) - Credit Suisse (CSGN.S) will face shareholder anger on Tuesday at what will be its final annual general meeting after the bank was rescued last month by Swiss rival UBS (UBSG.S). Tuesday's shareholder meeting marks an ignominious end for the 167-year-old flagship bank founded by Alfred Escher, a Swiss magnate affectionately dubbed King Alfred I, who helped build the country's railways and then Credit Suisse. After a run on deposits, the Swiss government turned to UBS, which agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its earlier market value. In the lead up to Tuesday, Credit Suisse said it had withdrawn certain proposals from the meeting's agenda. Meanwhile, the office of the attorney general on Sunday said Switzerland's Federal Prosecutor has opened an investigation into the Credit Suisse takeover.

March 21 (Reuters) - Investors on Tuesday took some heart from the rescue of troubled lender Credit Suisse by its Swiss rival UBS (UBSG.S), though concerns lingered about the risk of shockwaves further damaging credit markets and smaller U.S. banks. "The current situation in U.S. regional banks and Credit Suisse has raised concerns about contagion risk," said Grace Tam, chief investment advisor Hong Kong at BNP Paribas Wealth Management. Credit Suisse CEO Ulrich Koerner, who was expected to attend the conference, however, dropped out and the event was closed to media after the weekend rescue. Shares in First Republic Bank (FRC.N) halved on Monday on worries that last week's $30 billion infusion of capital would not be enough. The regulators said owners of this type of debt would only suffer losses after shareholders have been wiped out - unlike at Credit Suisse, whose main regulators are in Switzerland.

The FT said UBS had offered a price of 0.25 Swiss francs ($0.27) a share to be paid in UBS stock. Credit Suisse shares ended Friday at 1.86 Swiss francs. Credit Suisse and UBS declined to comment on the reports when contacted by CNBC. The Swiss bank's balance sheet is around twice the size of Lehman Brothers when it collapsed, at around 530 billion Swiss francs as of end-2022. It reported a full-year net loss of 7.3 billion Swiss francs for 2022 and expects a further "substantial" loss in 2023.

The terms of the deal will see Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. "This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. The Swiss National Bank pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. It reported a full-year net loss of 7.3 billion Swiss francs for 2022 and expects a further "substantial" loss in 2023.

☆ This fund manager shorted Credit Suisse — and he's sticking with his bet
▼ + stars: | 2023-03-18 | by ( Ganesh Rao | ) www.cnbc.com time to read: +5 min

Barry Norris, fund manager at Argonaut Capital, said Saturday morning that he still expects Credit Suisse 's stock to become worthless. "If this happens we would expect [Credit Suisse] equity holders to get zero, deposit holders guaranteed and probably but not certain that bond holders will be made whole." Norris' Argonaut Absolute Return Fund fund delivered 11.3% in returns last year amid a year of losses for the broader stock market. Credit Suisse has had tumultuous few years, battling various scandals and controversies . Credit Suisse had invested heavily in Greensill and marketed its funds to clients, but the firm collapsed in 2021, leaving Credit Suisse and its customers with $1.7 billion in losses and reputational damage.

☆ Exclusive: Some Credit Suisse counterparties curb dealings as bank heads into scenario meetings -sources
▼ + stars: | 2023-03-17 | by ( Shankar Ramakrishnan Stefania Spezzati Sumeet Chatterjee | Shankar Ramakrishnan | Stefania Spezzati | ) www.reuters.com time to read: +5 min

Credit Suisse declined to comment. Credit Suisse intends to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity on Thursday. The five people with direct knowledge of the bank's trading counterparties requested anonymity because of the sensitivity of the situation. Credit Suisse has said that it is a strong, global bank. Among possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or wind down some of its existing businesses with a break-up potentially on the cards.

Executives will run through the numbers and formulate scenarios that might reshape Credit Suisse's future, the sources added. Credit Suisse declined to comment. Among possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or wind down some of its existing businesses with a break-up potentially on the cards. The sell-off in Credit Suisse's shares began in 2021, triggered by losses associated with the collapse of investment fund Archegos and Greensill Capital. In December, Credit Suisse had tapped investors for 4 billion Swiss francs.

☆ Exclusive: Some Credit Suisse counterparties put curbs on new dealings involving lender -sources
▼ + stars: | 2023-03-17 | by ( Shankar Ramakrishnan Stefania Spezzati Sumeet Chatterjee | Shankar Ramakrishnan | Stefania Spezzati | ) www.reuters.com time to read: +4 min

[1/3] The logo of Societe Generale bank is pictured on an office building in Nantes, France, March 16, 2023. Credit Suisse declined to comment. These five people with direct knowledge of the matter requested anonymity because of the sensitivity of the situation. Societe Generale has maintained existing counterparty positions with Credit Suisse, which it had cut back in recent weeks, but it is not increasing them, according to two sources with direct knowledge of the situation. Another global bank has reduced its unsecured exposure to Credit Suisse, which includes all lending with no collateral, according to a person with knowledge of the matter.

☆ From spying to Swiss bailout: How years of turbulence at Credit Suisse came to a head
▼ + stars: | 2023-03-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The logo of Swiss bank Credit Suisse is seen at an office building in Zurich, Switzerland February 21, 2022. The announcement that Credit Suisse would borrow up to 50 billion Swiss francs ($54 billion) from the central bank came after consecutive sessions of steep drops in its share price. It made Credit Suisse the first major bank to receive such an intervention since the 2008 Global Financial Crisis. Scandals Credit Suisse is currently undergoing a massive strategic overhaul in a bid to address these chronic issues. These oversight failures resulted in a massive shakeup of Credit Suisse's investment banking, risk and compliance and asset management divisions.

☆ Explainer: Credit Suisse: How did it get to crisis point?
▼ + stars: | 2023-03-16 | by ( Anshuman Daga | ) www.reuters.com time to read: +3 min

Credit Suisse confirmed last month that clients had pulled 110 billion Swiss francs of funds in the fourth quarter while the bank suffered its biggest annual loss of 7.29 billion Swiss francs since the financial crisis. In December, Credit Suisse had tapped investors for 4 billion Swiss francs. Reuters Graphics Reuters GraphicsWHAT STEPS CAN CREDIT SUISSE TAKE TO CALM INVESTORS? HOW IMPORTANT IS CREDIT SUISSE? Credit Suisse has a local Swiss bank, wealth management, investment banking and asset management operations.

☆ Credit Suisse shares soar over 20% on Swiss National Bank loan announcement
▼ + stars: | 2023-03-16 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

A branch of Swiss banking giant Credit Suisse behind a window under the rain, in Basel. (Photo by FABRICE COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)Credit Suisse shares soared over 30% at Thursday's market open after the bank said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank. The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement Wednesday that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks." "These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Credit Suisse CEO Ulrich Koerner said in the release Wednesday. "We thank the [Swiss National Bank] and FINMA as we execute our strategic transformation.

☆ Credit Suisse CEO said bank's liquidity basis is "very very strong"
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

ZURICH, March 15 (Reuters) - Credit Suisse (CSGN.S) Chief Executive Ulrich Koerner spoke of the strength of the Swiss lender's liquidity basis in an interview with CNA on Wednesday, after its share price dropped more than 30% following comments by the company's lead investor. "Our capital, our liquidity basis is very very strong," Koerner said. Earlier, Credit Suisse's largest shareholder, Saudi National Bank (1180.SE), said it would not buy more shares in the Swiss bank on regulatory grounds. A 30% drop in Credit Suisse shares triggered a 6% plus fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns. Reporting by Noele Illien; editing by Dhara Ranasinghe and Amanda CooperOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: ECB into the eye of banking storm
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Tom WestbrookThe European Central Bank (ECB) meets today for the first big test of policymakers' response to bank stability fears that are sweeping the globe. It's not entirely clear if that's reassuring or even more worrisome, but traders have initially gone with the former. Bank stocks in Hong Kong (.HSCIF), Sydney (.AXFJ) and Tokyo (.IBNKS.T) opened down but crept from lows during the day. A big interest rate hike, even if justified by economic conditions, can unleash fear that more banks - or something else - is going to break. Either way, the outcome will test markets' dramatic repricing of the worldwide interest rate outlook in recent days.

March 16 (Reuters) - U.S. shareholders of Credit Suisse Group AG (CSGN.S) sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances. The proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting. Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Turner, the named plaintiff, sued on behalf of holders of Credit Suisse's American depositary shares from March 10, 2022, to March 15, 2023. The case is Turner v Credit Suisse Group AG et al, U.S. District Court, District of New Jersey, No.

☆ Credit Suisse sued by U.S. shareholders over finances, controls
▼ + stars: | 2023-03-16 | by ( ) www.cnbc.com time to read: +1 min

U.S. shareholders of Credit Suisse Group AG sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances. The proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting. Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Turner, the named plaintiff, sued on behalf of holders of Credit Suisse's American depositary shares from March 10, 2022, to March 15, 2023. The case is Turner v Credit Suisse Group AG et al, U.S. District Court, District of New Jersey, No.

☆ On the precipice: How Credit Suisse's day of drama unfolded
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +5 min

Fifteen years later, Credit Suisse Group AG found itself on a similar precipice. By the time traders in New York were switching on screens on Wednesday, Credit Suisse had lost more than a fifth of its value. Credit Suisse did not comment for this story but noted recent interviews given by its CEO saying the bank was strong. STILL SMOLDERINGMarkets seemed to calm, but the fresh drama around Credit Suisse jogged memories that the financial system was not out of the woods yet. "We welcome the statement of support," Credit Suisse said.

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