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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.

☆ Banor Capital discusses Credit Suisse crisis
▼ + stars: | 2023-03-21 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit Suisse crisis: The market is asking for strong government intervention, says investment firmFrancesco Castelli of Banor Capital discusses UBS' Swiss government-brokered deal to buy Credit Suisse and the risk of inheriting of toxic assets.

LONDON, March 20 (Reuters) - Bank of America's electronic stocks desk has halted trading with a desk at Credit Suisse that uses computer-led strategies, "out of an abundance of caution effective today," an email seen by Reuters on Monday said. Bank of America (BAC.N) said it would no longer send trades to Credit Suisse's "ATS Crossfinder". That trading platform anonymously matches buy and sell orders for the same kinds of securities, according to the Credit Suisse (CSGN.S) website. Bank of America sent the email to traders and hedge fund clients on Monday morning. Credit Suisse declined to comment on the email and Bank of America also declined to comment.

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analyst says
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

read more"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

☆ 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.

☆ Switzerland puts up 260 billion francs for Credit Suisse rescue, documents show
▼ + stars: | 2023-03-20 | by ( John Revill | ) www.reuters.com time to read: +3 min

The total of 259 billion francs of support is equivalent to a third of Switzerland's entire economic output, which stood at 771 billion francs last year. Credit Suisse said last Wednesday it would take 50 billion francs from the scheme, which provides funding secured against collateral such as mortgages and securities. On top of this, the Swiss National Bank offered the combined bank an emergency liquidity loan of up to 100 billion Swiss francs. UBS and Credit Suisse were both in a group of the 30 global systemically important banks watched closely by regulators. A failure by Credit Suisse failure would ripple throughout the entire financial system, the Swiss government said late on Sunday.

☆ Investors dump Credit Suisse stock and bonds after UBS rescue
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

LONDON/ZURICH, March 20 (Reuters) - Investors dumped Credit Suisse (CSGN.S) shares and bonds on Monday after rival UBS (UBSG.S) agreed at the weekend to take over the 167-year old bank for just a fraction of its market value, with hefty backstops from the Swiss government. The debt is being written down on the orders of the Swiss regulator as part of its rescue merger with UBS, it was announced on Sunday, which angered bondholders. In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for Credit Suisse and assume up to $5.4 billion in losses. At Friday's close, Credit Suisse had a total market value of $8 billion. Shares in UBS meanwhile, dropped nearly 5% in premarket trading to around 15.81 francs.

☆ Goldman Sachs prepares claims trading for wiped out Credit Suisse debt - Bloomberg News
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: 1 min

March 19 (Reuters) - U.S. bank Goldman Sachs Group Inc (GS.N) traders were preparing to take bids on claims against Credit Suisse Group's (CSGN.S) riskiest bonds, Bloomberg News reported on Sunday, citing people familiar with the matter. Clients were told in a message late Sunday that the New York-based bank would soon start trading claims in the so-called additional tier 1 bonds, or AT1s, according to the report. The Swiss lender's additional tier 1 shares with a nominal value of around 16 billion Swiss francs ($17.24 billion) will be written down completely after the Swiss government provided support for UBS' takeover of Credit Suisse. Goldman did not immediately respond to a Reuters request for comment. Reporting by Shubhendu Deshmukh in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Treasury yields decline as investors weigh UBS’ takeover of Credit Suisse
▼ + stars: | 2023-03-20 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +2 min

ET, the yield on the 10-year Treasury was down by over six basis points to 3.3319%. U.S. Treasury yields fell on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse. Over the weekend, the Swiss National Bank, the Swiss Financial Market Supervisory Authority and the Swiss government worked on the takeover of Credit Suisse by UBS, the two largest Swiss banks. As part of the deal, the Swiss National Bank and Swiss government also announced they would take measures to support the deal, including a loan of up to 100 billion Swiss francs ($108 billion). Last week, Credit Suisse's biggest investor, the Saudi National Bank, said it could no longer support the Swiss bank financially.

☆ Stock futures are flat following Monday's relief rally: Live updates
▼ + stars: | 2023-03-20 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Stock futures held steady in overnight trading Monday after the market staged a relief rally on the hope that the banking turmoil would be contained. S&P 500 futures and Nasdaq 100 futures were also little changed. Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives. First Republic Bank sold off another 47% during the session, extending its month-to-date decline to 90% as the collapse of Silicon Valley Bank made investors worried about other banks with large uninsured deposit bases. The SPDR Regional Banking ETF (KRE) rose 1% Monday after dropping 14% last week, with PacWest, First Citizens and Fifth Third Bancorp among the names leading the rebound.

☆ 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.

☆ US stocks jump as traders hope worst of banking crisis has passed
▼ + stars: | 2023-03-20 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

US stocks closed higher Monday as investors tried to navigate uncertainty in the banking system. UBS' takeover of Credit Suisse over the weekend cooled some fears of a wider crisis. Morgan Stanley said recent bank failures mark what's likely to be a "vicious" end to the bear market. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Over the weekend, UBS agreed to acquire Credit Suisse for $3.25 billion at the urging of the Swiss government.

☆ UBS rescue of Credit Suisse doesn't resolve the U.S. banking crisis
▼ + stars: | 2023-03-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +4 min

The Swiss government gets an "A" for its speed in addressing the Credit Suisse problem, but it doesn't resolve the U.S. banking crisis. The banking crisis has tightened financial conditions because it has dramatically interrupted the flow of capital. Banks, particularly regional banks, will likely be doing much less lending for the rest of the year. The bad news: this banking crisis has once again revealed an age-old problem with capitalism: much of it is based on faith. "It should be clear that the most expedient and effective solution to this crisis is an expansion and modernization of the FDIC deposit insurance regime."

☆ Credit Suisse tells staff to keep working and that salary and bonus will be paid 'as previously communicated' after UBS takeover deal: reports
▼ + stars: | 2023-03-20 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

UBS sealed a deal to acquire Credit Suisse for $3.25 billion on Sunday after a crisis of confidence. "There are no changes to payroll arrangements," Credit Suisse wrote in a Q&A addressing concerns staff may have, per Bloomberg. Credit Suisse also assured staff they will still be paid bonuses for their work in 2023, according to the memo. This put pressure on Credit Suisse, whose outflows have already been accelerating over the past few months. Credit Suisse did not immediately respond to Insider's request for comment.

☆ Premarket stocks: Silicon Valley Bank left a void that won't easily be filled
▼ + stars: | 2023-03-20 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

There’s no doubt that the failure of Silicon Valley Bank left a large void in tech. To find out, Before the Bell spoke with Ahmad Thomas, president and CEO of the Silicon Valley Leadership Group. Before the Bell: What’s the feeling on the ground with tech and VC leadership in Silicon Valley? Ahmad Thomas: Silicon Valley Bank has been a key part of our fabric here for four decades. FDIC sells most of failed Signature Bank to FlagstarFrom CNN’s David GoldmanA week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank.

☆ UBS could see big gains after forced Credit Suisse merger. Big U.S. banks may also be winners, analysts say
▼ + stars: | 2023-03-20 | by ( Alex Harring | ) www.cnbc.com time to read: +5 min

UBS ' acquisition of Credit Suisse could lead to big gains for the Swiss bank. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or around $3.2 billion, in a forced deal announced Sunday. As part of the deal, Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. But Barclays analyst Amit Goel wasn't so sure, cutting his view on European banks to neutral from positive on Monday. Wells Fargo's Mike Mayo, meanwhile, sees opportunity for U.S. banks coming out of the UBS takeover of Credit Suisse.

☆ Explainer: Why markets are in uproar over a risky bank bond known as AT1
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +4 min

Here are some of the implications of the Credit Suisse AT1 bond write-down. WHAT IS AN AT1 BOND? Credit Suisse AT1 holders, therefore, are the only ones not to receive any kind of compensation. It is not the first time that the treatment of AT1 bonds in a bank overhaul has caused controversy. The decision to write down Credit Suisse AT1 bonds to zero is viewed as negative for the AT1 bond market globally.

☆ '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.

☆ Swiss Government: UBS-Credit Suisse Deal Provides ‘Greater Stability’
▼ + stars: | 2023-03-20 | by ( ) www.wsj.com time to read: 1 min

Could ChatGPT Help Land Your Next Job? More job seekers are turning to artificial-intelligence chatbot ChatGPT for help improving their resumes. But some bosses are trying to figure out how to assess candidates who use the tool. WSJ personal tech reporter Ann-Marie Alcántara joins host Zoe Thomas to discuss what this means for the hiring process. Photo illustration By RACHEL MENDELSON/THE WALL STREET JOURNAL, Picture ALLIANCE/GETTY IMAGES, ISTOCK (5)

☆ U.S. bank crisis 'unlikely' to spill over to Canada, analysts say
▼ + stars: | 2023-03-20 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

"The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities," said James Shanahan, banking analyst with Edward Jones to Reuters. REGIONAL BANK SCRUTINYCanadian banks emerged stronger from the 2008 global financial crisis due to prudent regulations and since built a reputation for financial stability. The Canadian banks have kept their focus on domestic lending and majority of their earnings come from serving local clients. But in recent years, Royal Bank, BMO, TD Bank and CIBC (CM.TO) have expanded into the United States by buying regional lenders to benefit from strong growth in second-tier U.S. cities. However, last week the regional bank's stock was hit after the SVB collapse.

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.

☆ UBS salvages most value from Credit Suisse wreck
▼ + stars: | 2023-03-19 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

Meanwhile the government will cover up to 9 billion Swiss francs of losses, such as markdowns on Credit Suisse assets, past a certain threshold. A UBS takeover is preferable to the Swiss government nationalising Credit Suisse or winding it down. Follow @liamwardproud on TwitterCONTEXT NEWSUBS will rescue Credit Suisse in a deal worth about 3 billion Swiss francs, Swiss authorities and the two banks said on March 19. Shareholders in Credit Suisse will get one new UBS share for every 22.48 shares they currently hold. Based on UBS’s closing price on March 17 the offer values Credit Suisse shares at 0.76 Swiss francs each, well below the last closing price of 1.86 Swiss francs.

☆ UBS mulls Credit Suisse takeover amid US bank fallout: What you need to know
▼ + stars: | 2023-03-19 | by ( ) www.reuters.com time to read: +2 min

DEVELOPMENTS* A takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S) could see the Swiss government offer a guarantee against the risks involved, two people with knowledge of the matter said. * U.S. investment giant BlackRock (BLK.N) denied a report in the Financial Times that it was participating in a rival bid for all or parts of Credit Suisse. * The lightning speed of the banking industry's descent into turmoil has shaken global markets and governments, reviving eerie memories of the global financial crisis. * Goldman Sachs cut its recommendation on exposure to European bank debt to neutral from overweight, saying a lack of clarity on Credit Suisse's future path would put pressure on the broader sector. Fed faces calls to pause* Bank panic raises specter of 2008, may bring lasting changeCompiled by Reuters editorsOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

☆ UBS is buying Credit Suisse in bid to halt banking crisis
▼ + stars: | 2023-03-19 | by ( Mark Thompson | ) edition.cnn.com time to read: +4 min

“UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement. Credit Suisse shareholders will be largely wiped out, receiving just 1 UBS share for 22.5 Credit Suisse shares they own. UBS (UBS) and Credit Suisse rank among the 30 most important banks in the global financial system, and together they have almost $1.7 trillion in assets. “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome,” Credit Suisse chairman Axel Lehmann said in a statement. The Swiss National Bank said it would provide a loan of 100 billion Swiss francs ($108 billion) to UBS and Credit Suisse to boost liquidity.

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