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☆ 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.

☆ The Swiss claim the U.S. banking crisis ultimately toppled Credit Suisse. But are they right?
▼ + stars: | 2023-03-24 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

Pascal Mora | Bloomberg | Getty Imageswatch nowHowever, the downward spiral of Credit Suisse's share price and mounting asset outflows were underway long before the collapse of Silicon Valley Bank earlier this month. Swiss regulator FINMA has come under fire for allowing the situation to deteriorate as the bank spent years mired in losses and scandal. Mark Yallop, chairman of the U.K.'s Financial Markets Standards Board and former U.K. CEO at UBS, told CNBC on Tuesday that he agreed with the broad assessment that Credit Suisse's downfall was "idiosyncratic." "It's unfortunate that the problems with some of the smaller U.S. banks in the last two or three weeks happened at the same time as this issue with Credit Suisse but the two are completely different and very largely unrelated," he said. By contrast, the Swiss banking and regulatory system has come under fire.

☆ Swiss central bank hikes interest rates by 50 basis points despite Credit Suisse turmoil
▼ + stars: | 2023-03-23 | by ( Hannah Ward-Glenton | ) www.cnbc.com time to read: +2 min

The Swiss national flag hangs from the Federal Palace, Switzerland's parliament building, in Bern, Switzerland, on Thursday, Dec. 13, 2018. Photographer: Stefan Wermuth/Bloomberg via Getty ImagesThe Swiss National Bank raised its benchmark interest rate by 50 basis points Thursday, taking it to 1.5%. The Swiss National Bank had hinted there could be further rate hikes on the horizon if inflationary pressures continued. The Swiss National Bank has been in the global spotlight in the last week after it agreed to lend embattled lender Credit Suisse up to 50 billion Swiss francs ($53.68 billion). Shares of the lender had plummeted on news that its biggest investor, Saudi National Bank, would not provide further financial assistance.

☆ Swiss regulator says central bank loan to Credit Suisse justified AT1 bond writedown
▼ + stars: | 2023-03-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

Swiss regulator FINMA on Thursday defended its decision to instruct Credit Suisse to write down its AT1 bonds — a controversial part of the lender's emergency sale to UBS — saying it was a "viability event." The regulator said the loan Credit Suisse received from the Swiss National Bank last week, backed by the federal government, meant the conditions for a writedown had been met. The regulator instructed Credit Suisse to write down 16 billion Swiss francs of AT1 bonds, widely regarded as relatively risky investments, to zero, while equity shareholders will receive payouts at the stock's takeover value. "As Credit Suisse received extraordinary liquidity assistance loans secured by a federal default guarantee on 19 March 2023, these contractual conditions were met for the AT1 instruments issued by the bank." The Swiss federal government enacted an emergency ordinance to guarantee the additional liquidity assistance from the SNB to Credit Suisse, in order to ensure the successful implementation of the UBS takeover.

[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.

☆ UBS to take over Credit Suisse, assume up to 5 billion Swiss francs in losses
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +4 min

BERN, March 19 (Reuters) - UBS (UBSG.S) agreed to buy rival Swiss bank Credit Suisse (CSGN.S) 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. The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said. Credit Suisse Additional Tier 1 shares with a nominal value of around 16 billion francs ($17.2 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse, FINMA said. Reuters Graphics Reuters GraphicsThe Swiss government said that it was also giving UBS a guarantee of 9 billion Swiss francs "assume potential losses" from assets as part of the transaction.

☆ UBS acquiring Credit Suisse is 'no bailout' says Swiss finance minister — but top economist Mohamed El-Erian disagrees
▼ + stars: | 2023-03-20 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Switzerland's finance minister said UBS' $3.25 billion acquisition of Credit Suisse is not a bailout. The UBS and Credit Suisse deal — worth 3 billion Swiss francs, or $3.25 billion — comes with government guarantees and liquidity provisions. In particular, the Swiss government is guaranteeing UBS will get up to 9 billion Swiss francs if they incur losses from certain assets. The Swiss National Bank is also providing 100 billion Swiss francs in liquidity support to both banks. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally," she said.

☆ 'Shotgun wedding': What the UBS rescue of Credit Suisse means for global markets
▼ + stars: | 2023-03-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

Axel Lehmann, chairman of Credit Suisse Group AG, left, and Colm Kelleher, chairman of UBS Group AG, during a news conference in Bern, Switzerland, on Sunday, March 19, 2023. "The accelerating loss of confidence and the escalation over the last few days have made it clear that Credit Suisse can no longer exist in its current form," Lehmann said. In equal parts "shotgun wedding" and arranged marriage, UBS agreed to buy stricken domestic rival Credit Suisse for 3 billion Swiss francs ($3.25 billion) on Sunday. The government will offer a loss guarantee of up to 9 billion Swiss francs, with UBS assuming the first 5 billion of potential losses. Shares of both UBS and Credit Suisse plunged on Monday morning, however.

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.

☆ UBS to take over Credit Suisse, central banks act on liquidity
▼ + stars: | 2023-03-19 | by ( Reuters Staff | ) www.reuters.com time to read: +13 min

LONDON/NEW YORK (Reuters) -UBS sealed a deal to buy rival Swiss bank Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss authorities said on Sunday. FILE PHOTO: The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023. The reports that UBS is acquiring Credit Suisse will likely magnify Credit Suisse’s problems by moving them to UBS... The Credit Suisse issues are not new and needed to be resolved years ago. A legal challenge by Credit Suisse shareholders, who will claim that their property has been illegally confiscated, is guaranteed.

☆ UBS's Credit Suisse deal was the best solution says Swiss gov't
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +2 min

Keller-Sutter, who said she held a Credit Suisse bank account, said the worst case had been avoided. This is a commercial solution because UBS is taking over Credit Suisse," she told a press conference in Bern. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally," she said. He said it was far too early to discuss job cuts at Credit Suisse, but he was very positive about Credit Suisse's Swiss business. His upbeat tone contrasted with Credit Suisse Chairman Axel Lehmann, who was emotional when he spoke about the demise of 167-year-old Credit Suisse as an independent bank.

☆ UBS to take over Credit Suisse, assume up to 5 bln Swiss francs in losses
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +4 min

The deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank. In that eventuality, UBS would assume the first 5 billion francs, the federal government the next 9 billion francs, and UBS would assume any further losses, the government said. Credit Suisse Additional Tier 1 shares with a nominal value of around 16 billion francs ($17.2 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse, FINMA said. Authorities had been scrambling to rescue Credit Suisse, among the world's largest wealth managers, before financial markets reopened on Monday. Reuters Graphics Reuters GraphicsThe Swiss government said that it was also giving UBS a guarantee of 9 billion Swiss francs "assume potential losses" from assets as part of the transaction.

☆ Credit Suisse puts new dent in Swiss bank armour
▼ + stars: | 2023-03-17 | by ( Lisa Jucca | ) www.reuters.com time to read: +4 min

The Swiss National Bank’s intervention this week to prop up Credit Suisse (CSGN.S) was anything but uneventful. To rescue the country’s biggest lender, the government in Bern injected 6 billion Swiss francs in capital while the central bank carved off some 40 billion Swiss francs of toxic assets into a special purpose vehicle. The SNB made more than 5 billion Swiss francs from winding down UBS’s bad bank and the state booked over 1 billion Swiss francs of gains on its equity stake. Nervous clients pulled more than 100 billion Swiss francs from the Zurich-based bank in the fourth quarter of last year and may be hesitant to return. Switzerland’s two biggest banks, UBS and Credit Suisse, each had total asset exposure of between 120% and 140% of the country’s GDP.

A Credit Suisse Group AG office building is seen in Bern, Switzerland, on Wednesday. In October, social media chatter that the Swiss bank was on the brink of going bust sent shares on a wild ride. Credit Suisse has since embarked on a massive turnaround plan that will see it slash 9,000 full-time jobs by the end of 2025. It lost 7.3 billion Swiss francs ($7.9 billion) in 2022, compared to a loss of 8.2 billion Swiss francs ($8.9 billion) in 2008. Investors sent shares in the country’s second biggest lender crashing by as much as 30% Wednesday.

☆ Silicon Valley Bank's failure might just spark a faster housing rebound
▼ + stars: | 2023-03-16 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Now let's see how the fast-moving banking turbulence impacts the highly sensitive US housing market. "It seems that home sales activity has bottomed out, and 2023 will be the turning point for the housing market," she said. While her long-term outlook on a housing rebound hasn't changed, mortgage rates look set to fall faster than previously expected, which could allow more Americans to enter the housing market. And looking ahead to the Fed's meeting next week, Evangelou expects policymakers to moderate their aggressive policy. In other news:The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland October 28, 2020.

[1/3] Switzerland's national flag flies above a logo of Swiss bank Credit Suisse in front of a branch office in Bern, Switzerland November 29, 2022. Reuters GraphicsThe STOXX 600 (.STOXX) index fell 1.29%, while Europe's broad FTSEurofirst 300 index (.FTEU3) fell 44.48 points, or 2.51%. "The Credit Suisse share price is falling and government bonds are rallying on the back of that. Markets are "spooked" by Credit Suisse headlines, said Richard McGuire, head of rates strategy at Rabobank in London. "For today Credit Suisse is the dish of the day but we don't think this will be a longer lasting trend," he said.

☆ Credit Suisse unease sparks selloff in world stocks
▼ + stars: | 2023-03-15 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +5 min

[1/3] Switzerland's national flag flies above a logo of Swiss bank Credit Suisse in front of a branch office in Bern, Switzerland November 29, 2022. Reuters GraphicsEurope's bank index has now seen more than 120 billion euros evaporate ($127.08 billion) in since March 8. "The Credit Suisse share price is falling and government bonds are rallying on the back of that. Markets are "spooked" by Credit Suisse headlines, said Richard McGuire, head of rates strategy at Rabobank in London. "For today Credit Suisse is the dish of the day but we don’t think this will be a longer lasting trend," he said.

It has also denied that its military commanders are aware of sexual violence by soldiers. When Reuters asked for the identities of both soldiers, prosecutors provided only the name of the younger man. Russia has also accused Ukrainian forces of war crimes, including the execution of 10 prisoners of war. A U.N. human rights monitoring mission in Ukraine has said that most of the dozens of sexual violence accusations pointed at the Russian military. So far, Ukrainian prosecutors have convicted 26 Russians of war crimes - some prisoners of war, some in absentia - of which one was for rape.

☆ Enterprise Tech Firms Push Further Into Generative AI
▼ + stars: | 2023-03-08 | by ( Angus Loten | ) www.wsj.com time to read: +7 min

Generative AI, the technology underlying the viral ChatGPT chatbot, runs on algorithmic language models trained on vast amounts of online data. “We think 2023 will be the year that generative AI will become prevalent and a key component of modern office work,” he said. On Tuesday, the company launched a $250 million investing fund targeting generative AI startups. Yet despite assurances from the enterprise market’s biggest players, most corporate tech chiefs are taking a wait-and-see approach to ChatGPT-like generative AI technology, analysts said. Steve Santana, chief information officer at educational-testing company ETS, said he is more open to working with large enterprise-technology firms on generative AI capabilities, rather than small niche providers.

The four members of the Brotherhood Battalion later buried in Kyiv were Yurii Horovets, 34, Taras Karpiuk, 38, Maksym Mykhailov, 32 and Bohdan Liagov, 19. Ukrainian authorities did not comment on the raid then, and have subsequently denied involvement in attacks claimed by Ukrainian-based groups on Russian soil. "Our aim is to bring the war over to Russian territory. "When we are on Russian territory, we act autonomously," he added. Ukraine's defence ministry did not immediately respond to a request for comment on its relationship with the Brotherhood Battalion, called "Bratstvo" in Ukrainian, and the armed forces.

☆ Toblerone forced to replace iconic Matterhorn on packaging
▼ + stars: | 2023-03-06 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

The peak-shaped treat made with honey and almond nougat will also lose the iconic Matterhorn mountain from its packaging after Mondelez (MDLZ), which makes Toblerone, decided to shift some manufacturing to the Slovakian capital of Bratislava. “For legal reasons, the changes we’re making to our manufacturing mean we need to adjust our packaging to comply with Swissness legislation. We have removed our Swissness claim from the front of the Toblerone pack and changed our description ‘of Switzerland’ to ‘established in’,” a Mondelez spokesperson told CNN. Mondelez’s new packaging includes “a distinctive new Toblerone typeface and logo” and the signature of Theodor Tobler, the spokesperson added. Tobler created the chocolate bar in 1908 together with his cousin Emil Baumann, according to the Mondelez website.

Germany wants Switzerland to sell some of the tanks back to arms maker Rheinmetall (RHMG.DE), which would allow the company to backfill gaps in the armaments of European Union and NATO members. Germany, Poland, Portugal, Finland and Sweden are among countries sending Leopard tanks to help Ukraine defend itself against Russian attack, creating gaps in their own arsenals. German Defence Minister Boris Pistorius and Economics Minister Robert Habeck informed Swiss Defence Minister Viola Amherd about the project in a letter dated Feb. 23, the defence ministries in Bern and Berlin told Reuters on Friday. Under its neutrality laws and a separate arms embargo, Switzerland is prohibited from sending weapons directly to Ukraine. The Swiss military currently has 134 Leopard 2 tanks in service and a further 96 in storage.

They were eventually forced to retreat, and in early April media images of the carnage they left behind shocked the world. The bodies of civilians littered pavements and roads, some with hands tied behind their backs. Ukraine and the West accuse Russia of war crimes in Bucha, an allegation the Kremlin denies. You try to understand what that person is thinking; if that person can actually feel," she said in her home in Bucha. The mayor of Bucha has said more than 400 civilians were killed there by Russian forces, including dozens whose bodies lay untended for weeks on and alongside Yablunska, or Apple Street.

BUCHA, Ukraine/VILNIUS, Feb 22 (Reuters) - The brightly painted nails were what gave the identity of the body away. A year on from the full-scale invasion, her family and friends have parted ways, their lives upended by the conflict. Ukraine and the West accuse Russia of war crimes in Bucha, an allegation the Kremlin denies. February 24 is the day when life was taken away from all Ukrainians, but we are trying to get it back." Additional reporting by Yiming Woo in Bucha; Editing by Mike Collett-White and Alexandra HudsonOur Standards: The Thomson Reuters Trust Principles.

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