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☆ UBS Chairman addresses shareholders on milestone Credit Suisse takeover
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +1 min

[1/3] UBS Chairman Colm Kelleher speaks during the Annual General Meeting, two weeks after buying rival Swiss bank Credit Suisse, in Basel, Switzerland, April 5, 2023. REUTERS/Pierre AlbouyBASEL, April 5 (Reuters) - UBS's (UBSG.S) Chairman told the bank's annual shareholder meeting on Wednesday that the takeover of rival Credit Suisse (CSGN.S) was a significant milestone for Switzerland and for the global financial industry. Kelleher addressed shareholders for the fist time since the announcement of the takeover, urgently engineered and pushed through by the Swiss authorities last month. Outlining UBS's strategy, Kelleher said the Credit Suisse takeover would help the bank to deliver value to the Swiss economy and accelerate its strategic plans to expand its position as the leading wealth manager, particularly through growth in the United States and Asia. Reporting by Noele Illien Editing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ Switzerland faced a full-scale bank run if Credit Suisse went bankrupt, Swiss regulator argues
▼ + stars: | 2023-04-05 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +7 min

It would have erased the holding company Credit Suisse Group, along with the parent bank Credit Suisse AG and its branches, while retaining the Credit Suisse (Schewiz) AG entity because of its "systemic importance." "The parent bank Credit Suisse AG would have gone under – a Swiss bank with total assets of over CHF 350 billion and ongoing business also running into many billions," Angehrn warned. Many other Swiss banks would probably have faced a run on deposits, as Credit Suisse itself did in the fourth quarter of 2022." Angehrn said the regulator has been in recent dialogue with the U.S., but did not experience international pressure in its supervision of Credit Suisse. The authorities would have risked not stopping a looming financial crisis by using the tool of resolution, but rather triggering such a financial crisis."

☆ Bank rescue real estate turns from dowry to downer
▼ + stars: | 2023-03-30 | by ( Aimee Donnellan | ) www.reuters.com time to read: +3 min

Unlike many banks which got into trouble back in 2008, the Swiss lender has flogged much of its prime real estate. In the last financial crisis prime real estate played a big part of bank rescues. When Barclays (BARC.L) bought Lehman Brothers’ U.S. capital markets business in September 2008 the deal included the bankrupt investment bank’s headquarters. Today there is less real estate underpinning bank values. For buyers preparing to rescue embattled banks, real estate has turned from a dowry to a downer.

☆ Morning Bid: As banking worries slowly slip into rear view, markets fret on Fed
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

But as we are at the 'no news = good news' stage of the recovery from the banking worries, investors are preparing to try again as Europe wakes up with futures indicating a higher open. In a call to discuss the plan to split into six units, Group CEO Daniel Zhang said on Thursday the company's breakup plan will allow its units to become more agile and eventually list on their own. Investors hope the plan will help unlock value for the internet behemoth. Alibaba US shares traders at 11x forward earningsWith fears of a widespread banking crisis easing, investor attention has switched to Fed vs inflation. Meanwhile, the U.S. banking system's top cop said the scope of blame for Silicon Valley Bank's failure stretches across bank executives, Federal Reserve supervisors and other regulators.

☆ EU regulators distance themselves from Credit Suisse bond writedowns
▼ + stars: | 2023-03-30 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

Switzerland's second largest bank Credit Suisse is seen here next to a Swiss flag in downtown Geneva. BRUSSELS — European regulators distanced themselves from the Swiss decision to wipe out $17 billion of Credit Suisse 's bonds in the wake of the bank's rescue, saying they would write down shareholders' investments first. Dominique Laboureix, chair of the EU's Single Resolution Board, had a clear message for investors in an exclusive interview with CNBC. The Swiss decision has led some Credit Suisse AT1 bondholders to consider legal action, and it sparked uncertainty for bondholders around the world. The Single Resolution Board became operational in 2015 in the wake of the Global Financial Crisis and sovereign debt crisis.

☆ Credit Suisse withdraws certain proposals to AGM following UBS merger
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Credit Suisse Group AG (CSGN.S) said on Wednesday it has withdrawn certain proposals to the 2023 annual general meeting following the lender's recent merger with UBS Group AG (UBSG.S). The withdrawn proposals includes the discharge of the board of directors and executive board for the financial year 2022. It also withdrew a proposal for a one-time deferred share-based transformation award for the executive board, the lender said in a statement. UBS this month agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. Reporting by Anirudh Saligrama in Bengaluru;Our Standards: The Thomson Reuters Trust Principles.

☆ Ermotti returns to UBS to steer Credit Suisse takeover
▼ + stars: | 2023-03-29 | by ( John Revill | ) www.reuters.com time to read: +3 min

He takes charge weeks after UBS bought rival Swiss bank Credit Suisse in a shotgun merger engineered by Swiss authorities to stem turmoil after Credit Suisse ran aground. "Sergio has already reduced risk and made the investment bank serve its clients and not its investment bankers as Credit Suisse did. HAMERS HANDS OVER REINSErmotti said he was looking forward to integrating UBS and Credit Suisse. He was a notable absentee from the announcement of UBS's takeover of Credit Suisse on March 19. The next day, Hamers looked bleary eyed as he described the end of Credit Suisse as a "sad day" that nobody wanted.

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☆ UBS rehires Ermotti as CEO to steer Credit Suisse takeover
▼ + stars: | 2023-03-29 | by ( John Revill | ) www.reuters.com time to read: +3 min

ZURICH, March 29 (Reuters) - UBS Group AG (UBSG.S) has rehired Sergio Ermotti as CEO to steer its massive takeover of neighbour Credit Suisse (CSGN.S) - a surprise move that seeks to take advantage of his experience in rebuilding the bank after the global financial crisis. He takes charge weeks after UBS bought rival Swiss bank Credit Suisse in a shotgun merger engineered by Swiss authorities to stem turmoil after Credit Suisse ran aground. The next day, Hamers looked bleary eyed as he described the end of Credit Suisse as a "sad day" that nobody wanted. "The board took the decision in light of the new challenges and priorities facing UBS after the announcement of the acquisition," UBS added. Ermotti said he was looking forward to integrating UBS and Credit Suisse.

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DURHAM, North Carolina, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday his administration had done what was possible to address the banking crisis with available authorities, but added the White House response on the matter was "not over yet." The markets seem to be responding," Biden told reporters before departing North Carolina to return to the White House. Asked if his administration had exhausted its unilateral moves, short of congressional action, to address stress in the banking sector, Biden said: "No, it's not over yet. The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. The Biden administration quickly adopted a series of emergency measures to protect depositors in the two banks, while the Federal Reserve provided additional liquidity to help banks across the sector cover depositors' needs.

☆ This is not another banking crisis, analysts say — it's 'sentiment contagion' instead
▼ + stars: | 2023-03-28 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

"It was more of a 'sentiment contagion' rather than the true systemic contagion we saw during the global financial crisis. Vanguard economists believe that the damage has been largely contained, thanks to the quick action of federal agencies and other banks," Devereux said. The bank launched a huge restructuring effort in 2019 and has since posted 10 straight quarters of profit. "We've seen a lot of stuff breaking and haven't really been paying attention because it's been outside of regulated capital. For the core, the big cap banks in Europe, I think we're looking at a completely different picture and I wouldn't be concerned."

☆ Biden says banking crisis 'not over yet'
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday he has done what is possible to address the banking crisis with available authorities but that it is "not over yet." Asked if the administration would not take any more executive action to address the matter, Biden said "Oh no, It's not over yet. We're watching very closely." The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. Reporting by Andrea Shalal and Nandita Bose in Washington; Editing by Chris Reese and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Dollar steady as banking crisis fears linger
▼ + stars: | 2023-03-27 | by ( ) www.cnbc.com time to read: +3 min

The dollar was steady on Monday, while the yen hovered near its seven-week peak as investors assessed moves made by authorities and regulators to rein in worries over the global banking system. Minneapolis Fed president Neel Kashkari said on Sunday the recent stress in the banking sector and the possibility of a follow-on credit crunch has brought the U.S. closer to recession. "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy," Kashkari said in comments to CBS show Face the Nation. The Australian dollar rose 0.09% to $0.665.

☆ Saudi National Bank chair resigns just days after Credit Suisse comments sparked sell-off
▼ + stars: | 2023-03-27 | by ( Ruxandra Iordache | ) www.cnbc.com time to read: +1 min

The Saudi National Bank (SNB) headquarters beyond the King Abdullah Financial District Conference Center in the King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia, on Tuesday, Dec. 6, 2022. Saudi National Bank Chairman Ammar al-Khudairy resigned his post on Monday, days after his comments exacerbated the share collapse of troubled bank Credit Suisse . Al-Khudairy is stepping down "due to personal reasons," the bank said. The then-SNB chairman said the Saudi bank would not intercede "for many reasons outside the simplest reason, which is regulatory and statutory." The comments fueled investor panic, sinking Credit Suisse shares 24% during that session, despite effectively reiterating SNB's previous position that it did not intend to expand its holdings beyond its then 9.9% interest as Credit Suisse's largest shareholder.

☆ Dollar steady as banking crisis fears keep investors jittery
▼ + stars: | 2023-03-27 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

On Friday, the U.S. Financial Stability Oversight Council said the U.S. banking system was "sound and resilient" despite stress on some institutions. Risk-wary investors sent the yen to a seven-week high of 129.65 per dollar on Friday. "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy," Kashkari said in comments to CCBS show Face the Nation. The Australian dollar rose 0.03% versus the greenback at $0.665.

[1/3] The logo of Swiss bank Credit Suisse is seen in front of a branch office in Bern, Switzerland November 29, 2022. REUTERS/Arnd Wiegmann/File PhotoWASHINGTON/FRANKFURT, March 26 (Reuters) - Stress in the banking sector is being closely monitored for its potential to trigger a credit crunch, a U.S. Federal Reserve policymaker said on Sunday, as a European Central Bank official also flagged a possible tightening in lending. "What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. Meanwhile in Europe, the ECB believes that recent banking sector turmoil may result in lower growth and inflation rates, its vice president Luis de Guindos said. Turbulence among banking stocks on both sides of the Atlantic continued into the end of the week, despite efforts by politicians, central banks and regulators to dispel concerns.

☆ Credit Suisse could face disciplinary action, Swiss regulator says
▼ + stars: | 2023-03-26 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Swiss bank Credit Suisse is seen in front of a branch office in Bern, Switzerland November 29, 2022. REUTERS/Arnd Wiegmann/File PhotoZURICH, March 26 (Reuters) - Swiss financial regulator FINMA said it was considering whether to take disciplinary action against Credit Suisse (CSGN.S) managers after Switzerland's second largest bank had to be rescued last week by UBS (UBSG.S). Credit Suisse on Sunday declined to comment on the FINMA President's comments when asked by Reuters for a response. FINMA had conducted six public "enforcement proceedings" against Credit Suisse in recent years, Amstad said. Amstad also defended Switzerland's decision to write down 16 billion Swiss francs of Credit Suisse Additional Tier 1 (AT1) debt, to zero as part of the forced rescue merger.

☆ Dollar steady after Fed's rate pause hints, yen rises
▼ + stars: | 2023-03-24 | by ( ) www.cnbc.com time to read: +2 min

The dollar was steady on Friday near seven-week lows as nervousness over the banking system kept investors skittish and traders absorbed the Federal Reserve's hints of a pause to interest rate hikes. The dollar index , which measures the currency against six major rivals, fell 0.019% at 102.56, just above the seven-week low of 101.91 it touched on Thursday. The yen strengthened 0.34% to 130.37 per dollar, having touched six-week high of 130.28 earlier in the session. The euro was down 0.03% to $1.0827, easing from a seven-week high of $1.0930 it touched on Thursday. The Australian dollar fell 0.31% to $0.666, while the kiwi fell 0.22% to $0.623.

☆ BofA, UBS trim forecast for Fed funds rate amid banking crisis
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +1 min

The Fed's benchmark rate stood in the range of 4.75-5% following a quarter percentage point hike on Wednesday. BofA analysts said the consequent unexpected tightening in bank lending standards could substitute for further hikes. BofA and UBS no longer expect an interest rate hike in June and see the Fed funds rate peaking in May at 5-5.25% and 5.25-5.5%, respectively. Goldman Sachs, which expected the Fed to pause on Wednesday, maintained its terminal rate forecast in the 5.25-5.5% range, but now sees rates peaking in June instead of July. Money markets, which priced in a terminal rate close to 6% by September just as early as this month, now see the rate peaking at 4.9% by May.

The index of top European banks (.SX7P) was down 1% in early trading, with German banking giants Deutsche Bank (DBKGn.DE) and Commerzbank (CBKG.DE) both falling 0.8%. The rescue of Credit Suisse, which followed the collapses of California-based Silicon Valley Bank (SVB) (SIVB.O) and New York-based Signature Bank (SBNY.O) ignited broader concerns about investors' exposure to a fragile banking sector. The decision to prioritise shareholders over Additional Tier 1 (AT1) bondholders rattled the $275 billion AT1 bond market and some Credit Suisse AT1 bondholders are seeking legal advice. "The AT1 instruments issued by Credit Suisse contractually provide that they will be completely written down in a 'viability event', in particular if extraordinary government support is granted," FINMA said. However, some watchers think the banking system is more vulnerable to rumour and rapid moves in an era of widespread social media use, posing a challenge for regulators trying to tamp down instability.

☆ London stocks fall ahead of BoE rate decision, banks down
▼ + stars: | 2023-03-23 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

The FTSE 100 (.FTSE) fell 0.7%, after recording its highest closing level in more than a week on Wednesday. The focus now shifts to the BoE, which is widely expected to also raise its lending rate by 25 bps at 1200 GMT. "It's highly unlikely that the BoE would diverge from other central banks," said Julien Lafargue, chief market strategist at Barclays Private Bank. Ahead of its decision on interest rates, the BoE said in a letter to lawmakers that more sharp moves in asset prices could expose weaknesses in parts of Britain's financial system. Informa (INF.L) dropped 2.7% after Morgan Stanley cut its rating on the events organizer's stock to "equal-weight" from "overweight".

☆ Swiss Miss: Why UBS's deal with Credit Suisse will threaten its hold on rich clients
▼ + stars: | 2023-03-22 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted. For one Irish billionaire and Credit Suisse client, this is what matters most.

[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.

☆ UBS set for talks with Michael Klein to terminate Credit Suisse investment bank deal - FT
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +1 min

March 21 (Reuters) - UBS (UBSG.S) is set to enter talks with Michael Klein to terminate a deal that would have seen the Wall Street dealmaker take control of much of Credit Suisse's (CSGN.S) investment bank, the Financial Times reported on Tuesday. UBS on Sunday agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. Klein, a veteran dealmaker, was merging his eponymous advisory boutique into Credit Suisse's investment banking operations to create CS First Boston as a standalone business which he would have led from New York. UBS has now assigned a legal team to examine how to void the contract Credit Suisse signed with Klein in the cheapest way possible, according to the FT report, which cited people with direct knowledge of the matter. UBS and Credit Suisse declined to comment, while Klein could not be immediately reached for comment.

☆ UBS will become a Swiss wealth behemoth after buying Credit Suisse, but blending the two rivals could get awkward and messy
▼ + stars: | 2023-03-21 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +7 min

UBS was already a giant in wealth management before it agreed to buy doomed rival Credit Suisse. UBS was already the largest private wealth manager in the world before it agreed to buy fellow Swiss bank Credit Suisse. UBS and Credit Suisse are both known for servicing the ultra-rich, though UBS does so on a much larger scale. The acquirer had $2.8 trillion in global wealth management assets as of the end of 2022 while Credit Suisse's totalled $585 billion. But the merger gives UBS and Credit Suisse clients the thing that matters mostBut the acquisition wasn't just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted.

☆ Everything you need to know about UBS's historic $3 billion deal to rescue rival bank Credit Suisse
▼ + stars: | 2023-03-21 | by ( George Glover | ) www.businessinsider.com time to read: +6 min

UBS agreed to buy its longtime rival Credit Suisse for $3 billion on Sunday. There's one big winner — and lots of losers — from the Credit Suisse rescue deal. The deal announced Sunday afternoon valued Credit Suisse shares at just 0.76 Swiss francs, one-fifth of the price the Saudi National Bank paid. Lastly, the merger between UBS and Credit Suisse could be bad news for the Fed. Here's how the Credit Suisse rescue deal impacts the central bank.

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