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The FT said UBS had offered a price of 0.25 Swiss francs ($0.27) a share to be paid in UBS stock. Credit Suisse shares ended Friday at 1.86 Swiss francs. Credit Suisse and UBS declined to comment on the reports when contacted by CNBC. The Swiss bank's balance sheet is around twice the size of Lehman Brothers when it collapsed, at around 530 billion Swiss francs as of end-2022. It reported a full-year net loss of 7.3 billion Swiss francs for 2022 and expects a further "substantial" loss in 2023.

☆ Fed and other central banks try to head off crisis by boosting flow of dollars
▼ + stars: | 2023-03-19 | by ( Mark Thompson | ) edition.cnn.com time to read: +3 min

Credit Suisse — one of the 30 most important banks in the global financial system — was bleeding money last week after investor and customer confidence collapsed. Swap lines are agreements between two central banks to exchange currencies. They allow a central bank to obtain foreign currency from the central bank that issues it, and distribute it to commercial banks in their country. During the global financial crisis of 2008 following the collapse of Lehman Brothers, funding markets dried up because of an extreme aversion to risk. From Monday through at least the end of April, the Fed and other central banks will make dollars available on a daily basis, rather than weekly.

The terms of the deal will see Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. "This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. The Swiss National Bank pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. It reported a full-year net loss of 7.3 billion Swiss francs for 2022 and expects a further "substantial" loss in 2023.

☆ This fund manager shorted Credit Suisse — and he's sticking with his bet
▼ + stars: | 2023-03-18 | by ( Ganesh Rao | ) www.cnbc.com time to read: +5 min

Barry Norris, fund manager at Argonaut Capital, said Saturday morning that he still expects Credit Suisse 's stock to become worthless. "If this happens we would expect [Credit Suisse] equity holders to get zero, deposit holders guaranteed and probably but not certain that bond holders will be made whole." Norris' Argonaut Absolute Return Fund fund delivered 11.3% in returns last year amid a year of losses for the broader stock market. Credit Suisse has had tumultuous few years, battling various scandals and controversies . Credit Suisse had invested heavily in Greensill and marketed its funds to clients, but the firm collapsed in 2021, leaving Credit Suisse and its customers with $1.7 billion in losses and reputational damage.

☆ Fail or sale? What could be next for stricken Credit Suisse
▼ + stars: | 2023-03-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

In this article CSG.N-CHSBNY Follow your favorite stocks CREATE FREE ACCOUNTPeople walk by the New York headquarters of Credit Suisse on March 15, 2023 in New York City. Barry Norris, CEO of Argonaut Capital, which has a short position in Credit Suisse, stressed the importance of a smooth outcome. watch nowEuropean banking shares have suffered steep declines throughout the latest Credit Suisse saga, highlighting market concerns about the contagion effect given the sheer scale of the 167-year-old institution. At the moment, the forecaster sees the problems at Credit Suisse and SVB as "a collection of different idiosyncratic issues." "We know that for most banks, including Credit Suisse, that exposure to higher yields has largely been hedged.

☆ BlackRock denies report that it's preparing a takeover bid for Credit Suisse
▼ + stars: | 2023-03-18 | by ( Katrina Bishop | ) www.cnbc.com time to read: +2 min

BlackRock headquarters in New York, US, on Friday, Jan. 13, 2023. via Getty ImagesBlackRock has denied a report that it is preparing a takeover bid for embattled Swiss lender Credit Suisse . "BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so," a company spokesperson told CNBC Saturday morning. Its future looks to be hanging in the balance after a multibillion-dollar lifeline offered by the Swiss central bank last week failed to calm investors. Credit Suisse was already in the midst of a massive strategic overhaul aimed at restoring stability and profitability. The default at hedge fund Archegos Capital not long after led to another $5.5 billion loss for the Swiss investment bank.

☆ Nobel economist Paul Krugman says the Silicon Valley Bank collapse has led to 'apocalyptic rhetoric' in markets, but almost none of it is true
▼ + stars: | 2023-03-17 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +5 min

The collapse of Silicon Valley Bank has bred "apocalyptic" fears in markets, but most are unfounded, Paul Krugman said. The Nobel economist refuted myths about SVB's failure and rescue in an op-ed for the NYT. The tech-focused bank failed a week ago, and was taken over by the FDIC to mark the largest bank collapse since the 2008 crisis. While Krugman believes SVB's collapse wasn't another Lehman Brothers moment, the bank was still a crucial part of the tech sector, which justifies its rescue. SVB's collapse will undermine the Fed's inflation fightThe fourth unfounded fear, Krugman says, is that the collapse of Silicon Valley Bank could interfere with the Fed's inflation fight.

☆ The market is on the verge of a Lehman-style event as the financial world thrashes in the wake of global banking turmoil, veteran trader Art Cashin says
▼ + stars: | 2023-03-17 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

The market may be nearing its Lehman moment yet again, Art Cashin told CNBC. The Wall Street vet said certain investors could use the banking crisis for their own financial gain. "We are on the edge of what we were doing back when Lehman got in trouble," Cashin told CNBC on Friday. In the span of a week, Silicon Valley Bank and Signature Bank were seized by regulators, while Silvergate announced it was winding down operations and liquidating positions. The Fed has forced many of these banks to reconfigure their portfolios," Cashin said, pointing to the US central bank's rate hikes.

☆ Analysis: As worries over banks swirl, investors seek protection against market crash
▼ + stars: | 2023-03-17 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

The S&P 500 is down 5% from its early February high though it remains up 3% year to date. ... Now the downside tail has a lot more risk priced into it," said Chris Murphy, co-head of derivatives strategy at Susquehanna. Volatility in the Cboe Volatility Index (.VIX), which reflects expectations of stock volatility, has been muted by comparison, though the index hit a five-month high earlier this week. "That is something worth monitoring closely to gauge the expansion of risk within the system," he said. Reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Mark PorterOur Standards: The Thomson Reuters Trust Principles.

For more than a decade after the collapse of Lehman Brothers in 2008, Washington’s regulatory watchdogs sought to ensure that they would never again face fraught weekend deliberations about propping up the financial system from a bank failure. Last weekend, they did.

☆ European shares choppy ahead of ECB decision, Credit Suisse jumps
▼ + stars: | 2023-03-16 | by ( Bansari Mayur Kamdar | ) www.reuters.com time to read: +3 min

The STOXX 600 (.STOXX) was flat by 0925 GMT after rising as much as 1.6% in early trading. The banks sector index (.SX7P) added 1.3%, after logging its steepest one-day drop in more than a year in the previous session. Shares of the Zurich-based lender had tumbled 24% to a record low on Wednesday. The cost of insuring exposure to European junk corporate bonds also fell, in a sign of investor relief. Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Subhranshu Sahu and Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ 'Everything is fine' at Credit Suisse - it's just a bit of panic, says its biggest backer Saudi National Bank
▼ + stars: | 2023-03-16 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

'Everything is fine' at Credit Suisse, according to Saudi National Bank chairman Ammar Al Khudairy. Saudi National Bank insisted that raising its stake above 10% is a red line for regulatory reasons. "It's panic, a little bit of panic, I believe completely unwarranted, whether it be for Credit Suisse or for the entire market." But Al Khudairy has insisted that raising Saudi National Bank's stake above 10% is a red line primarily because of regulatory reasons. There has been no discussions whatsoever since October about Credit Suisse needing more capital or requiring assistance," Al Khudairy said.

☆ Morning Bid: Swiss lifeline, ECB dilemma
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +6 min

The Swiss lender said it would exercise an option to borrow from its central bank up to 50 billion Swiss francs ($54 billion). That followed assurances from Swiss authorities on Wednesday the country's second largest bank met "the capital and liquidity requirements imposed on systemically important banks". Policymakers and regulators across Europe and Asia rushed to reassure the public and markets that banks in their jurisdictions were safe and well-capitalised. Like other central banks, the ECB has been raising interest rates rapidly to curb inflation and has since July tightened credit at its fastest pace on record. As it stands, money markets now price an 80% chance the ECB will move tentatively and only hike by a quarter point to 2.75%.

☆ Germany's Scholz sees no threat of new financial crisis - Handelsblatt
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, March 16 (Reuters) - German Chancellor Olaf Scholz sought to assuage fears that the collapse of Silicon Valley Bank and problems at Credit Suisse might trigger a new financial crisis, saying a more resilient banking system and stronger economy ensured savings were safe. "I do not see the risk," Scholz told German business daily Handelsblatt. "The monetary system is no longer as fragile as it was before the financial crisis," referring to events in 2008 which included the collapse of Lehman Brothers. His remarks come after Credit Suisse borrowed up to $54 billion from Switzerland's central bank to shore up its liquidity and restore investor confidence and follows the demise of Silicon Valley Bank earlier this month. Not only because of the higher resilience of the banking system and stricter regulation, but also because of our economic strength," Scholz was quoted as saying.

☆ German corporate treasurers urged not to underestimate the current situation
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, March 16 (Reuters) - German corporate treasuers were urged by an industry association on Thursday not to "underestimate the current situation" as cracks in the global banking system emerge. The warning came in a blog post on Thursday from the Association of German Treasurers entitled "SVB collapse not without consequences for treasurers" asking whether this was a "Lehman 2.0" moment. "Nevertheless, treasurers should not underestimate the current situation, even if they themselves are not directly or indirectly affected by the collapse of the three U.S. banks," the association wrote. It cited a reserch report from the bank LBBW saying that a flight to quality could weaken smaller and medium-sized banks. Reporting by Tom Sims and Marta Orosz Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

March 16 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. There's no doubting it now - Credit Suisse has made the banking crisis global and, in classic financial crisis mode, investors are rushing for the global safe havens of the U.S. dollar, U.S. Treasuries and Japanese yen. Indeed, the most important driver for Asian markets on Thursday may come from Frankfurt. A cynic might point out that the ECB has form for failing to grasp the enormity of an unfolding financial crisis and raising interest rates. Debate is intensifying on the roots of the banking crisis - solvency, liquidity or asset quality?

☆ Credit Suisse was losing the faith of investors long before the SVB debacle. Here's why the situation came to a head this week.
▼ + stars: | 2023-03-15 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +6 min

Credit Suisse shares tumbled more than 25% on Wednesday as fears grew of a banking crisis. Here's a closer look at why Credit Suisse is worrying investors. The latest slump in Credit Suisse stock can partly be explained by recent events in the US banking industry. Credit Suisse CEO Ulrich Koerner has also faced questions about his plans to cut costs, staunch losses, and turn around his company. There's no clear reason to believe Credit Suisse is at risk of failure.

☆ 'Dr. Doom' Nouriel Roubini says Credit Suisse may be too big to save and risks igniting a 'Lehman moment'
▼ + stars: | 2023-03-15 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

"Dr. Doom" economist Nouriel Roubini said Credit Suisse may be too big to fail and too big to save. The Swiss National Bank said it will provide liquidity to Credit Suisse, if necessary. Roubini noted that Credit Suisse has significantly more assets than what SVB had before it failed. At the end of the fourth quarter, Credit Suisse had over $500 billion in assets, more than double what SVB had. "So anything that happens to Credit Suisse will be of systemic effects, not just for the European financial system but also for the global financial system," he said.

☆ This banking crisis is different from the 2008-2009 financial crisis in 4 ways, Moody's chief economist Zandi says
▼ + stars: | 2023-03-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

There are four differences between the current banking crisis and the GFC, Moody's chief economist says. Zandi's comments adds to views that the current banking crisis is different from the situation in 2008. In a series of tweets on Monday, Mark Zandi, the chief economist at Moody's Analytics, said the current banking crisis is different from the Global Financial Crisis, or GFC, in four key ways. The financial crisis, which sparked the Great Recession, was one of the worst economic downturns in US history. The economic backdrop is different this time aroundZandi also said the economic backdrop right now is very different from that of the Great Financial Crisis.

☆ More banks could soon fail - but that could end up being good news for stocks
▼ + stars: | 2023-03-14 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

Still, no matter what the Consumer Price Index clocks in at, it's possible that the failures of Signature Bank and Silicon Valley Bank already convinced Jerome Powell to take his foot off the gas. Silicon Valley Bank employees react to the bank's collapse Getty Images1. With the government rescuing Signature and Silicon Valley Bank depositors, not all the downside has been contained, according to Wharton finance professor, Itamar Drechsler. Silicon Valley Bank's CEO, Greg Becker, previously asked Congress to ease regulatory oversight on the bank. But, as Jefferies analysts put it, "the world changed" with Silicon Valley Bank's failure.

☆ Credit Suisse's chairman took a pass on a $1.6 million award and had his pay cut
▼ + stars: | 2023-03-14 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

Credit Suisse chairman Axel Lehmann took a pass on a $1.6 million award and saw a pay cut. In its delayed annual report, the Swiss bank said it "identified material weaknesses" in its financial reporting. Lehmann, who started his position last January, waived his chair fee of 1.5 million Swiss francs ($1.6 million) that is typically awarded to board members on top of their salaries, according to Credit Suisse's compensation report. The lender will also cut his salary for 2023-2024 to 3.8 million Swiss francs from an earlier projection of 4.5 million francs, according to the report. "We have identified material weaknesses in our internal control over financial reporting as of December 31, 2022 and 2021," the annual report said.

☆ SVB: What the worst bank failure since 2008 means for markets, the financial sector, and interest rates
▼ + stars: | 2023-03-14 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +8 min

Here's what SVB's sudden demise means for markets, the US banking sector, and interest rates. That capped a turbulent week that saw a botched fundraising attempt by Silicon Valley Bank (SVB) and a $1.8 billion loss on its bond holdings, which ultimately triggered an old-fashioned bank run. Silicon Valley Bank's collapse exposed a serious risk many banks face in their business portfolios – the dependence on uninsured deposits. However, former Treasury chief Larry Summers took a less pessimistic view, saying SVB's collapse was "unlikely to be a broadly systemic problem." But as bad as it is, it's unlikely to trigger a repeat of the 2008 global financial crisis that set the stage for the Great Recession, according to analysts.

☆ No all-clear yet for European banks after SVB collapse - German economist
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

BERLIN, March 14 (Reuters) - European banks are not completely in the clear after the collapse of Silicon Valley Bank (SIVBV.UL) and Signature Bank (SBNY.O) even though they do not face a systemic risk, the president of German economic research group DIW said on Tuesday. But he said many European banks were also facing this issue. "We have to be very careful," Fratzscher said, adding that German banks haven't fully recovered from the 2008 financial crisis initiated by the fall of Lehman Brothers, which had "systemic meaning" and caused a domino effect. "We don't see that in the case of SVB, which is relatively small," he said. Reporting by Maria Martinez; Editing by Miranda Murray and Alison WilliamsOur Standards: The Thomson Reuters Trust Principles.

Investors reeled in their expectations for global central bank rate hikes, and bank stocks tumbled once again. Reuters GraphicsIn the money markets, a closely watched indicator of credit risk in the U.S. banking system edged up on Monday, as did other indicators of credit risk in the euro zone. The gap between two-year euro swap rates and two-year German bond yields , widened by around 20 basis points to 83 basis points, to the highest since Nov. 11. Reuters GraphicsIn Germany, two-year bond yields dropped more than 50 basis points, much more than a drop of 37 basis points on swap rates. Back in late 2008, when failed investment bank Lehman Brothers collapsed, this swap rate went as negative as 300 bps.

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