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☆ Saudi National Bank loses over $1 billion on Credit Suisse investment
▼ + stars: | 2023-03-20 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Signage for Credit Suisse Group AG outside a building, which houses the company's branch, in Tokyo, Japan, on Monday, March 20, 2023. UBS Group AG agreed to buy Credit Suisse Group in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets. Saudi National Bank — Credit Suisse's largest shareholder — confirmed to CNBC Monday that it had been hit with a loss of around 80% on its investment. The Riyadh-based bank holds a 9.9% stake in Credit Suisse, having invested 1.4 billion Swiss francs ($1.5 billion) in the 167-year-old Swiss lender in November of last year, at 3.82 Swiss francs per share. Under the terms of the rescue deal, UBS is paying Credit Suisse shareholders 0.76 Swiss francs per share.

☆ European supervisors say shares should be wiped out before bonds
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, March 20 (Reuters) - European supervisors tried to stop a rout in the market for convertible bank bonds on Monday, saying owners of this type of debt would only suffer losses after shareholders have been wiped out - unlike what happened at Credit Suisse (CSGN.S). The European Banking Authority, European Central Bank and the Single Resolution Board and were reacting to a decisions by Swiss authorities to write off Credit Suisse's Additional Tier 1 bonds even as stockholders received shares in UBS (UBSG.S). The three European regulators - respectively responsible for writing the rules, applying them and winding down failing banks - said they would continue to impose losses on shareholders before bondholders. "Additional Tier 1 is and will remain an important component of the capital structure of European banks," they added. The supervisors welcomed, however, "the comprehensive set of actions taken yesterday by the Swiss authorities" to save Credit Suisse.

☆ European stocks slide as Credit Suisse buyout fails to soothe investors
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

The pan-European STOXX 600 index (.STOXX) fell 0.8% by 0807 GMT, after having recorded its biggest weekly decline of the year on Friday. Shares of Credit Suisse slumped 62.3% after rival UBS Group AG said it will pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old bank and assume up to $5.4 billion in losses, in a package orchestrated by Swiss regulators on Sunday. Investors were also spooked by news that Credit Suisse additional tier-1 bonds - or AT1 bonds - with a notional value of $17 billion will be valued at zero, angering some of the holders of the debt who thought they would be better protected than shareholders. The wider European banking index (.SX7P) slid 3.2% to hit its lowest level in three months. Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

Under the deal being discussed, UBS would only keep parts of Credit Suisse’s investment bank that fill gaps either geographically or in certain product areas where UBS lacks a presence. UBS Group AG has offered to buy rival Credit Suisse for around $1 billion in a deal engineered by Swiss regulators to restore trust in the banking system, according to people familiar with the matter. One option would involve buying the entirety of Credit Suisse and then spinning off its local Swiss operations into an independent entity, the people said. UBS would keep Credit Suisse’s valuable wealth-management business.

☆ First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale
▼ + stars: | 2023-03-19 | by ( David Benoit | Andrew Ackerman | ) www.wsj.com time to read: 1 min

U.S. policy makers warily watched the rushed rescue of Credit Suisse Group AG over the weekend, hoping that its purchase by UBS Group AG would stem a slide in financial stocks triggered by the recent collapse of two regional banks. Late Sunday, the Fed and five major central banks announced a coordinated effort to improve liquidity by moving U.S. dollars among themselves each day, starting Monday, instead of once a week. The central banks then lend those dollars out to financial institutions, in an effort to backstop other countries’ funding needs should strains emerge in global markets.

The Swiss government said it would provide more than $9 billion to backstop some losses that UBS may incur in the deal. UBS Group AG agreed to take over its longtime rival Credit Suisse Group AG for more than $3 billion, pushed into the biggest banking deal in years by regulators eager to halt a dangerous decline in confidence in the global banking system. The deal between the twin pillars of Swiss finance is the first megamerger of systemically important global banks since the 2008 financial crisis when institutions across the banking landscape were carved up and matched with rivals, often at the behest of regulators.

[1/2] Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 19, 2023. UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and agreed to assume up to $5.4 billion in losses as it winds down the smaller peer's investment bank after a shotgun merger engineered by Swiss authorities. The failure of two U.S. banks and a rout in Credit Suisse shares have sent shock waves through markets over the past week, reviving memories of the 2008 financial crisis. The U.S., UK and Swiss central banks are all scheduled to meet in the week ahead. Others drew attention to the losses likely to be suffered by Credit Suisse junior bondholders.

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.

☆ UBS offers to buy Credit Suisse for up to $1 billion, Financial Times reports
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +1 min

March 19 (Reuters) - UBS Group AG (UBSG.S) has offered to buy Credit Suisse (CSGN.S) for up to $1 billion, with the Swiss government planning to change the country's laws to bypass a shareholder vote on the deal, the Financial Times reported on Sunday. Credit Suisse's shares closed at 1.86 Swiss francs on Friday. Credit Suisse declined to comment, while UBS Group and the Swiss government did not immediately respond to Reuters request for comment. UBS is examining a takeover of Credit Suisse that could see the Swiss government offer a guarantee against the risks involved, two people with knowledge of the matter told Reuters on Saturday. ($1 = 0.9258 Swiss francs)Reporting by Akriti Sharma in Bengaluru Editing by David Goodman, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

Swiss authorities are expected to reach at least a rough deal before markets reopen. UBS Group AG is in talks to take over parts or all of Credit Suisse Group AG , which might involve a government backstop, part of an urgent effort by Swiss and global authorities to restore trust in the banking system, people familiar with the situation said. Credit Suisse took a more-than-$50 billion Swiss National Bank liquidity lifeline this week after concerns deepened about its prospects. The action didn’t do enough to stop the slide in Credit Suisse’s shares or stem the loss of bank deposits, compelling the central bank and Switzerland’s top financial regulator to orchestrate talks with Credit Suisse’s larger rival, UBS.

UBS has long been seen as part of any state-backed solution for Credit Suisse. UBS Group AG is nearing a deal to take over Credit Suisse Group AG, part of an urgent effort engineered by Swiss and global authorities to restore trust in the banking system, people familiar with the situation said. The deal could come together Sunday if not sooner, the people said. Regulators have offered to waive a requirement for customary shareholder votes to expedite the sale, one of the people said. The discussions were fast-moving and a remaining sticking point was the status of who will own Credit Suisse’s substantial Swiss retail arm, the people said.

☆ UK finance minister, Bank of England governor in contact over Credit Suisse - source
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

[1/2] Britain's Chancellor of the Exchequer Jeremy Hunt walks at Downing Street in London, Britain, November 17, 2022. REUTERS/Toby Melville/File PhotoLONDON, March 18 (Reuters) - British finance minister Jeremy Hunt and Bank of England Governor Andrew Bailey are in regular contact this weekend over the fate of Credit Suisse Group AG (CSGN.S), according to a source with knowledge of the matter. UBS Group AG (UBSG.S) is mulling a takeover of its embattled Swiss rival Credit Suisse, other sources told Reuters on Saturday, amid a crisis of confidence in the bank that risks destabilizing the global financial system. A spokesperson for the Bank of England's Prudential Regulation Authority, which oversees lenders, declined to comment. Credit Suisse's UK entity, Credit Suisse International, has $60 billion of risk weighted assets, according to the company's latest filings.

☆ UBS seeks Swiss backstop in any Credit Suisse deal - Bloomberg News
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - UBS Group AG (UBSG.S) is asking the Swiss government for a backstop if it were to buy Credit Suisse Group AG (CSGN.S), Bloomberg News reported on Saturday. UBS is discussing scenarios in which the government would take on certain legal costs or other specific losses in any deal, the report said, citing people with knowledge of the matter. Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, the report added. UBS Group and Credit Suisse did not immediately respond to Reuters requests for comment. Reuters reported earlier that Credit Suisse is weighing several survival options as regulators urge the investment bank to pursue a deal with UBS.

March 18 (Reuters) - UBS Group AG (UBSG.S) is seeking government guarantees of about $6 billion for a potential takeover of Credit Suisse Group AG (CSGN.S), a person with knowledge of the discussions told Reuters on Saturday. The guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges, the source said. Credit Suisse was valued at the equivalent of about $8 billion at the close on Friday. Deutsche Bank AG is also interested in acquiring parts of Credit Suisse, the first source said. Bloomberg earlier reported the German lender's interest in parts of Credit Suisse.

A source with knowledge of the matter said that Swiss regulators are encouraging UBS and Credit Suisse to merge, but that both banks do not want to do so. Credit Suisse shares jumped 9% in after-market trading following the FT report. Credit Suisse and UBS declined to comment on the report. "Credit Suisse is a very special case," said Frédérique Carrier, head of investment strategy at RBC Wealth Management. The supervisors were told deposits were stable across the euro zone and exposure to Credit Suisse was immaterial, a source familiar with the meeting's content told Reuters.

☆ UBS in talks to acquire Credit Suisse -FT
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

[1/2] A logo is seen on the headquarters of Swiss bank UBS on Paradeplatz in Zurich, Switzerland March 16, 2023. REUTERS/Denis BalibouseMarch 17 (Reuters) - Banking giant UBS (UBSG.S) is in discussions to take over all or parts of Credit Suisse (CSGN.S), with the boards of Switzerland's two biggest lenders set to meet separately over the weekend, the Financial Times reported on Friday. On Friday evening, Swiss regulators informed their counterparts in the United States and United Kingdom that the merger of the two banks was their "Plan A" to salvage the confidence in Credit Suisse, the report added. Credit Suisse and UBS declined to comment on the report. Bloomberg reported on Thursday that UBS Group AG and Credit Suisse were opposed to a forced merger, with UBS preferring to focus on its own wealth-centric strategy and reluctant to take on risks related to its smaller rival.

☆ UBS, Credit Suisse oppose idea of forced merger, Bloomberg News reports
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of Swiss bank UBS is seen at an office building in Zurich, Switzerland October 25, 2022. REUTERS/Arnd WiegmannMarch 16 (Reuters) - UBS Group AG (UBSG.S) and Credit Suisse Group AG (CSGN.S) are opposed to a forced merger, Bloomberg News reported on Thursday, citing people with knowledge of the matter. UBS and Credit Suisse declined to comment on Reuters' requests for comment. Wall Street bank JPMorgan on Wednesday said that Credit Suisse's takeover by another lender, probably UBS, was the most likely scenario for the embattled bank. Reporting by Urvi Dugar in Bengaluru Editing by Mark Potter and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

A reversal of low rates to stem rampant inflation has forced a risk rethink and exposed the vulnerability of firms such as Credit Suisse. Meanwhile, Credit Suisse still needs to push ahead with a radical restructuring it undertook in October to restore profitability. [1/2] The Credit Suisse logo adorns one of their buildings at their campus in Research Triangle Park in Morrisville, North Carolina, U.S., March 15, 2023. "Credit Suisse has been in our watch-list for a while," one senior executive told Reuters. The radical move by the Swiss central bank is aimed at banishing such doubts.

☆ Swiss government holds talks on options to stabilize Credit Suisse - Bloomberg News
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 15 (Reuters) - Swiss authorities and Credit Suisse Group AG are discussing ways to stabilize the bank, Bloomberg reported on Wednesday, citing people familiar with the matter. Credit Suisse leaders and government officials have talked about options that range from a public statement of support to a potential liquidity backstop, the reportsaid. Other suggested potential moves for Credit Suisse could be a potential separation of their Swiss unit and a tie-up with their larger Swiss competitor, UBS Group AG (UBSG.S), the report said, adding that it's unclear which, if any of these steps will actually be executed. Switzerland is under pressure from at least one major government to intervene quickly on Credit Suisse, a source familiar with the situation told Reuters, after the Swiss bank led a rout of European bank stocks on Wednesday. Credit Suisse shares dropped by as much as 30.8%, leading a 7% fall in the European banking index .SX7P, while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, reviving fears of a broader threat to the financial system.

☆ UBS Set to Apply for China Mutual-Fund License
▼ + stars: | 2023-02-23 | by ( Jing Yang | ) www.wsj.com time to read: 1 min

UBS was the first foreign bank in China to take majority ownership of its local investment-banking unit. UBS Group AG is preparing to apply for a mutual-fund license in China, according to people familiar with the matter, becoming the latest Western bank to take advantage of Beijing’s relaxed rules on foreign financial institutions. The Swiss bank has held informal communications with the China Securities Regulatory Commission about its intention to apply, and plans to submit the application as soon as possible, some of the people said.

☆ UBS set to apply for China mutual fund license - WSJ
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

Feb 23 (Reuters) - Switzerland's biggest bank UBS Group AG (UBSG.S) is looking to apply for a mutual fund license in China, the Wall Street Journal reported on Thursday, citing people familiar with the matter. The Swiss bank is in informal talks with the China Securities Regulatory Commission (CSRC) about its intention to apply, the report said. UBS plans to submit the application as soon as possible, the report said without mentioning a timeline. The company declined to comment, while CSRC did not immediately respond to Reuters' request for comment. Reporting by Nilutpal Timsina in Bengaluru; Additional reporting by Maria Ponnezhath; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

FRANKFURT, Feb 9 (Reuters) - Credit Suisse (CSGN.S) has taken another step towards creating a standalone investment bank by buying Michael Klein's advisory boutique, but gave few clues on Thursday about potential investors who might back the business with new capital. In October, Credit Suisse Chief Executive Officer Ulrich Koerner said the bank had already a commitment from an investor without giving a name. The plan has raised concerns from Credit Suisse shareholders over potential conflicts of interest. Credit Suisse said it would keep control over the structure of CS First Boston. CEO Koerner said: "The ties between the new Credit Suisse and CS First Boston are obviously super-deep and will stay super-deep."

☆ UBS Attracts Wealthy Clients to Help Lift Profit
▼ + stars: | 2023-01-31 | by ( Margot Patrick | ) www.wsj.com time to read: 1 min

UBS is one of Europe’s strongest lenders in terms of its stock valuation and capital position. UBS Group AG said wealth clients added new assets at the bank in the fourth quarter, helping it post a better-than-expected net profit. Chief Executive Ralph Hamers said it was among banks benefiting from outflows at rival Credit Suisse Group AG, including in Asia. He said Credit Suisse’s woes weren’t the main driver of inflows.

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