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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.

☆ Swiss parliament to investigate Credit Suisse collapse
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

ZURICH, May 17 (Reuters) - Credit Suisse's (CSGN.S) collapse and its takeover by UBS (UBSG.S) will be investigated by a parliamentary commission (PUK), the office of Switzerland's upper house of parliament said on Wednesday. The move comes after two sub-committees supported a deeper investigation into how the government, Swiss central bank and financial market regulator acted in the run up to the emergency rescue of Credit Suisse. The bank's takeover by UBS has been backed by 200 billion Swiss francs ($225.00 billion) in support from the government, which was determined to prevent Credit Suisse's collapse triggering a broader crisis in the global financial system. The Swiss government has also agreed to absorb up to 9 billion francs in potential losses incurred by UBS as a result of the takeover. ($1 = 0.8889 Swiss francs)Reporting by John Revill, Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

☆ UBS kitchen sink has protection from further leaks
▼ + stars: | 2023-05-17 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

UBS (UBSG.S) late on Tuesday released a regulatory filing showing what the bank’s accounts may look like after its roughly $4 billion acquisition of Credit Suisse (CSGN.S). For starters, the filing is peppered with caveats, including that UBS still hasn’t managed to complete detailed valuations of the assets. At roughly 2% of Credit Suisse’s overall loans and financial assets, the haircuts do seem rather modest. The filing’s risk factors note that UBS might inherit future court cases that could stem from the cancellation of Credit Suisse’s Additional Tier 1 bonds, for example. Ermotti might not have performed a total kitchen sink, but his investors needn’t be too concerned.

☆ UBS expects $17 billion hit from Credit Suisse rescue, flags hasty due diligence
▼ + stars: | 2023-05-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

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. UBS estimates a financial hit of around $17 billion from its emergency takeover of Credit Suisse , according to a regulatory filing, and said the rushed deal may have affected its due diligence. In the amended F-4 filing, UBS also highlighted that the short time frame under which it was forced to conduct due diligence may have affected its ability to "fully evaluate Credit Suisse's assets and liabilities" prior to the takeover. Swiss governmental authorities approached UBS on March 15 while considering whether to initiate a sale of Credit Suisse in order to "calm markets and avoid the possibility of contagion in the financial system," the filing revealed. The bank had until March 19 to conduct its due diligence and return with a decision.

NEW YORK, May 15 (Reuters) - At least seven top Barclays Plc (BARC.L) bankers have resigned to join to UBS Group AG (UBSG.S) in the United States in the last few days, people familiar with the matter said. The moves add to a trio of Barclays investment bankers that UBS announced internally it hired last month. Many Credit Suisse bankers are based in the United States. UBS has hired Laurence Braham, Richard Hardegree, Richard Casavechia, Ozzie Ramos, Jason Williams, Neil Meyer and Ken Tittle from Barclays, the sources said. These bankers follow Barclays ex-colleagues Marco Valla, Jeff Hinton and Kurt Anthony, whose moves to UBS were announced in April.

The moves add to a trio of Barclays U.S. investment bankers that UBS announced it hired last month. Many Credit Suisse bankers are based in the United States. Sources told Reuters last month that UBS plans to retain only a small number of Credit Suisse senior bankers with strong client relationships. At Barclays, Braham was global chair of investment banking for technology, while Hardegree served as vice chair and head of technology M&A. Williams, Meyer and Tittle were managing directors in the investment banking group.

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 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.

[1/2] David Hunt President and CEO, PGIM, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. As Wall Street money managers, banking executives and pension fund managers gathered at the Milken Institute Global Conference, the main topic over cocktails on Sunday night and in conference rooms the following morning was JPMorgan Chase & Co's (JPM.N) purchase of First Republic Bank. Policymakers, executives and investors at the conference said constrained lending as a result of banking sector regulation could choke off credit to the economy. Nevertheless, betting against bank stocks has been a profitable endeavor this year, which has seen the high-profile failures of Silicon Valley Bank and Signature Bank, in addition to First Republic and a state-engineered rescue of Credit Suisse by the Swiss government. The KBW Regional Banking Index, which fell 2.7% on Monday, is down almost 23.6% year-to-date, while First Republic’s shares are off 97% since January.

☆ Consultancies are coming off a pandemic boom. Are they still worth hiring?
▼ + stars: | 2023-04-27 | by ( Anna Cooban | ) edition.cnn.com time to read: +9 min

Management consultancies helped design vaccination programs during the pandemic and are currently providing advice on how to rescue one of the world’s biggest banks. The $230 billion management consulting industry is a broad church: it includes companies offering everything from project management expertise to designing new organizational structures. Many big firms — think EY and KPMG — also conduct audits and advise on their clients’ tax issues, though these services are generally seen as distinct from their consulting work. In The Big Con, published in February, prize-winning economist Mariana Mazzucato and her co-author Rosie Collington argue that management consultancies “infantilize” governments by keeping them dependent on their services. Nearly 80% of firms surveyed globally have told the think-tank that consultants’ work is either of high or very high quality, she noted.

☆ Final Days at Credit Suisse Were Marked by a $69 Billion Race for the Exits
▼ + stars: | 2023-04-24 | by ( Michael J. De La Merced | ) www.nytimes.com time to read: +1 min

Credit Suisse said on Monday that clients had withdrawn nearly $69 billion in the first quarter, underscoring the spiraling troubles the embattled Swiss bank faced that forced a fire sale to its archrival, UBS, in March. In its final financial report as an independent company, Credit Suisse — which lost 1.3 billion Swiss francs, or $1.46 billion, in the first three months of the year — said that it had suffered “significant net asset outflows,” particularly in the second half of March. Those came as investors feared for the health of the troubled 167-year-old lender, sending its stock plunging and forcing the bank to borrow billions from the Swiss central bank to shore up confidence in its finances. Shareholders had been on edge about Credit Suisse for months, worried about its viability amid losses and a series of scandals and financial missteps. But the Swiss government ultimately forced the firm to sell itself to UBS for $3.2 billion.

☆ Credit Suisse withdrawals topped $68 billion as the bank veered towards collapse
▼ + stars: | 2023-04-24 | by ( Hanna Ziady | ) edition.cnn.com time to read: +1 min

London CNN —Credit Suisse suffered outflows of 61.2 billion Swiss francs ($68.7 billion) in the first three months of the year and customers are still pulling their money from the bank as UBS races to complete a rescue of its stricken rival. “Credit Suisse experienced significant net asset outflows, in particular in the second half of March 2023. Credit Suisse’s first-quarter earnings could be its last after it was bought last month by UBS (UBS) in an emergency rescue deal orchestrated by the Swiss government. Credit Suisse (CS) reported a 1.3 billion franc ($1.3 billion) loss for the first quarter, extending a losing streak that began in 2021. The bank posted a loss of 7.3 billion Swiss francs ($7.9 billion) in 2022, its biggest annual loss since the financial crisis in 2008.

☆ Credit Suisse mess leaves scattered Swiss debris
▼ + stars: | 2023-04-24 | by ( Lisa Jucca | ) www.reuters.com time to read: +7 min

ZURICH, April 24 (Reuters Breakingviews) - Swiss government intervention to save Credit Suisse (CSGN.S) from collapse last month may have avoided a financial market storm. SWISS “TRINITY” QUESTIONThe rescue of Credit Suisse has other consequences. The Swiss Bankers Association has called for an independent inquiry, and lawmakers gave a symbolic thumbs-down to the rescue of Credit Suisse on April 12. A Senate Finance Committee report found last month Credit Suisse had violated a 2014 deferred prosecution agreement with U.S. authorities by continuing to help rich Americans dodge taxes. Switzerland’s parliament on April 12 rejected a Credit Suisse rescue package that included 109 billion Swiss francs in financial guarantees.

☆ Factbox: Lawsuits lodged over state-backed Credit Suisse takeover
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

April 21 (Reuters) - Several lawsuits have been filed over the terms of last month's emergency deal to save Swiss lender Credit Suisse (CSGN.S) by selling it to its bigger rival UBS (UBSG.S). Around 16 billion Swiss francs of Additional Tier 1 (AT1) Credit Suisse debt was written down to zero, in a shock to markets. But it has declined to name claimants or provide an ongoing tally of those lodged by bondholders or their lawyers. UNITED STATESOne of the first proposed U.S. class action s against Credit Suisse over alleged false or misleading statements pre-dates the rescue. Credit Suisse declined to comment.

☆ Focus now on how UBS positions itself going forward - BlackRock vice chairman
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] Philipp Hildebrand,Vice Chairman of BlackRock, speaks during a news conference with Swiss Economic Minister Guy Parmelin (not pictured), as the spread of the coronavirus disease (COVID-19) continue in Bern, Switzerland October 28, 2020. REUTERS/Arnd WiegmannLONDON, April 20 (Reuters) - The Swiss government has done a 'very good job' with Credit Suisse's rescue given circumstances, but the question now is how the takeover settles and how UBS positions itself going forward, Philipp Hildebrand, BlackRock's vice chairman said on Thursday. "The question now will be how does this settle, and how does UBS position itself going forward, given quite intense political discussions in Switzerland around competition, around size, and many other issues," Hildebrand told a Bloomberg conference in Dublin. BlackRock, the world's largest asset manager, is a major shareholder in UBS. Reporting by Yoruk Bahceli and Padraic Halpin; editing by Dhara RanasingheOur Standards: The Thomson Reuters Trust Principles.

☆ Credit Suisse lodges $440 mln London claim against SoftBank
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

[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. REUTERS/Pierre AlbouyLONDON, April 19 (Reuters) - Credit Suisse (CSGN.S) has lodged a $440 million claim against Japan's SoftBank Group Corp (9984.T) in London as it presses ahead with formal proceedings in a dispute borne from the failure of Greensill Capital, a finance firm. A SoftBank spokesperson accused Credit Suisse of trying to shift blame for its own poor investment decisions and said the case was entirely without merit. "Credit Suisse continues to prioritize maximising recovery for investors in the supply chain finance funds," a spokesperson for the Swiss lender said. Credit Suisse is the biggest name to date to become ensnared in market turbulence unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.

☆ Japanese firms want stability rather than change from new BOJ governor: Reuters poll
▼ + stars: | 2023-04-19 | by ( Tim Kelly | ) www.reuters.com time to read: +3 min

Summary 52% of firms want the BOJ to help stabilize financial marketsFewer firms want end to BOJ zero rate policyA third of firms want the BOJ to stick with current policies16% of firms want revision to 2% inflation targetTOKYO, April 20 (Reuters) - Most Japanese firms want Bank of Japan Governor Kazuo Ueda to focus on financial market stability at his first policy meeting next week, with few seeing benefits from any easing of its ultra-loose monetary policy, a Reuters monthly poll showed. Of nearly 500 major companies polled, 52% said they hoped for financial stability measures, with a third saying Ueda should maintain the policies of his predecessor, Haruhiko Kuroda. Slightly less than a quarter of the Japanese firms surveyed by Reuters said they wanted a revision of the BOJ's negative interest rate policy, down from nearly a half two months ago when Ueda was nominated to his post. Fewer companies also urged the central bank to revise its inflation target, down to 16% from 28% of those polled in February. The Reuters Corporate Survey, conducted for Reuters by Nikkei Research between April 5 and April 14, canvassed 493 big non-financial Japanese firms, including 246 manufacturers and 247 non-manufacturers.

☆ Swiss government reiterates financial commitment to Credit Suisse deal
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +2 min

[1/3] 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. REUTERS/Pierre AlbouyBERLIN, April 19 (Reuters) - The Swiss government said commitments to the Swiss National Bank and UBS to ease the takeover of Credit Suisse will not be affected by parliament's rejection of 109 billion Swiss francs ($121 billion) in emergency credits and guarantees. Switzerland's tradition of consensus politics has taken a battering after the government used an emergency law to push through a state-backed takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S), side-lining parliament. "On the one hand, this applies to the negotiations with UBS on the guarantee contract," it said, adding: "But only to the extent that this does not jeopardise the takeover of Credit Suisse by UBS". ($1 = 0.8998 Swiss francs)Writing by Miranda Murray, Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

☆ Swiss government awards $9.7 mln contract related to Credit Suisse - UBS merger
▼ + stars: | 2023-04-17 | by ( Oliver Hirt | ) www.reuters.com time to read: +2 min

[1/2] The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023. REUTERS/Denis Balibouse/File PhotoZURICH, April 17 (Reuters) - The Swiss government has awarded an advisory mandate worth up to 8.7 million Swiss francs ($9.70 million) to Alvarez & Marsal Switzerland, linked to the rescue of Credit Suisse (CSGN.S), according to state procurement platform Simap.ch on Monday. Swiss authorities last month engineered a takeover of struggling Credit Suisse by rival UBS (UBSG.S) that included over 200 billion francs in financial guarantees. The Ministry of Finance will pay up to CHF 10.3 million for this service. ($1 = 0.8965 Swiss francs)Writing by Noele Illien; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

PARLIAMENT 'CIRCUMVENTED'The Credit Suisse/UBS merger marked the first time that parliament had withheld its support for emergency laws designed to deal quickly with crises. Swiss Finance Minister Karin Keller-Sutter defended the use of the emergency powers, saying Switzerland was not an "emergency dictatorship." "The emergency law is based on the federal constitution and I don't think it's correct to say it's illegal." "Politicians might have wanted to show their disapproval about what happened, but they don’t want the UBS takeover to fail." The use of such emergency legislation, overturning antitrust rules, is a problem for Swiss democracy and rule of law.

☆ BlackRock is open to a major deal. Here's where it could look to expand as the banking crisis emboldens the world's largest money manager.
▼ + stars: | 2023-04-14 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +4 min

The banking crisis that unfolded last month has created opportunities for BlackRock. The potential for a "transformational" deal would expand the world's largest money manager. The banking crisis that unfolded last month with the collapse of Silicon Valley Bank has emboldened BlackRock, the world's largest money manager with some $9 trillion of assets. The Financial Times reported last December that BlackRock had "discussed whether to pursue a takeover of private markets manager Carlyle but decided against it," citing three people with knowledge of those discussions. "We are asking ourselves to reimagine BlackRock," Fink said on Friday.

☆ Jeremy Grantham can spot market bubbles. Now he's warning of an 'ominous' bust
▼ + stars: | 2023-04-13 | by ( Julia Horowitz | ) edition.cnn.com time to read: +7 min

“Every one of these great bursts of euphoria, the great bubbles with overpriced markets … has been followed by a recession,” Grantham said. “When the great bubbles break, they do impose a lot of stress on the system,” Grantham said. What’s even more worrying is that this time, bubbles in the stock market and the real estate market are poised to burst simultaneously, Grantham said. The sector, which relies heavily on debt financing, has been hit hard by rising interest rates. Volcker raised interest rates to unprecedented levels to fight inflation in the late 1970s and early 1980s.

☆ Swiss parliament seeks elusive compromise over Credit Suisse rescue
▼ + stars: | 2023-04-12 | by ( Noele Illien | ) www.reuters.com time to read: +3 min

While the upper house approved the government's 109 billion Swiss franc ($120.82 billion) contribution to the rescue package, parliament's lower, and larger chamber, later rejected it. Seeking a compromise, the upper house passed changes to the measure on Wednesday morning, which the lower house will vote on later in the day. As they returned on Wednesday, the upper house passed changes, which include a proposal for Switzerland's federal government to draft an amendment to the country's Banking Act. Its aim would be to reduce the risks posed by systemically relevant banks, such as Credit Suisse and UBS for Switzerland, by, for example, raising capital requirements and restricting bonuses. A shotgun marriage which saw Credit Suisse taken over by rival UBS (UBSG.S) for 3 billion Swiss francs and propped up with more than 250 billion Swiss francs in guarantees and support has drawn widespread criticism.

The lower house retrospectively rejected the rescue near midnight, with heated debates continuing into the early hours of Wednesday morning as members discussed other measures related to Credit Suisse. Earlier on Tuesday, Switzerland's upper house had approved the rescue, meaning the two chambers of the legislative body will vote again on Wednesday. A poll of Swiss economists found that nearly half thought the takeover of Credit Suisse by UBS was not the best solution, warning the saga had dented Switzerland's reputation. Politicians also questioned why the Swiss financial regulator was unable to prevent Credit Suisse's failure. There are also growing worries about jobs and in an open letter to parliament, the Swiss Bank Employees' Association said that Credit Suisse and UBS must freeze any cuts.

SummarySummary Companies Swiss upper house approved Credit Suisse rescueFrustration in Switzerland over use of state fundsLawmakers have protested, but cannot overturn dealBERN, April 11 (Reuters) - Switzerland's upper house of parliament voted on Tuesday after a heated debate to approve retrospectively the 109 billion Swiss francs ($120.5 billion) in financial guarantees used to rescue Credit Suisse (CSGN.S) last month. But 29 of Switzerland's 46-member Council of States upper house approved the measure. "The use of emergency law has reached a level in the last three years that is beginning to annoy me," Hansjoerg Knecht, a member of Parliament's upper house, said. Politicians also questioned why the Swiss financial regulator was unable to prevent Credit Suisse's failure. Eva Herzog asked during a speech to the upper house.

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