UBS

Swiss banking giant UBS agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that threatened to ...

After emerging from a state bailout during the 2008 financial crisis, UBS built a reputation as one of the world’s largest wealth managers, catering to high- and ultra-high net worth individuals globally. It had grown into global powerhouse symbolising Switzerland’s role as a global financial centre, before struggling to adapt to a changed banking landscape after the financial crisis. A liquidity backstop by the Swiss central bank mid-week failed to end a market drama that threatened to send counterparties fleeing, with potential ramifications for the broader industry. Regulator Finma said about 16 billion francs of Credit Suisse bonds will become worthless to ensure private investors help shoulder the costs. The Swiss bank is paying 3 billion francs ($4.8 billion) for its rival in an all-share deal that includes extensive government guarantees and liquidity provisions. Authorities sought an agreement before markets opened again in Asia.

UBS is close to finalising a deal to buy rival Swiss bank Credit Suisse, a source familiar with...

Officials raced to rescue the 167-year-old Credit Suisse, among the world's largest wealth managers, after a brutal week saw the second- and third-largest US bank failures in history. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" for restoring calm. Stock markets open shortly in Asia, Australia and New Zealand. The Swiss banking marriage follows efforts in Europe and the United States to support the sector since the collapse of US lenders Silicon Valley Bank and Signature Bank. UBS will pay for 3 billion Swiss francs ($A4.82 billion) and assume up to $US5.4 billion ($A8.1 billion) in losses in a deal expected to close by the end of 2023. In a sign of a coordinated global response, the US Federal Reserve on Sunday said it had joined with central banks in Canada, England, Japan, the European Union and Switzerland in a coordinated action to enhance market liquidity.

Swiss bank UBS has agreed to take over its troubled rival Credit Suisse after doubling its offer to $US2 billion ($3 billion) amid crisis talks aimed at ...

That saw the SNB step in overnight with a $54-billion lifeline. “Last autumn we had a social media storm and this had huge repercussions — more in the retail sector that in the wholesale sector. The Swiss Bank Employees Association said there was “a great deal at stake” for the 17,000 Credit Suisse staff, “and therefore also for our economy”. “We were overtaken by legacy situations by risks that materialised last year. We were effected by a market model that does no longer work in this market environment. Credit Suisse, the country’s second-biggest bank after UBS, “has been a source of worry for several months”, he said, adding that turbulence on the markets in recent days showed that “the necessary confidence” in the bank could not be restored.

The Swiss National Bank also pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. In this article.

The Swiss National Bank pledged a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover. The losses came despite a new loan of up to 50 billion Swiss francs ($54 billion) granted from the Swiss central bank last week, in an effort to halt the slide and restore confidence in the bank. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. Credit Suisse Chairman Axel Lehmann said in the press conference that the financial instability brought about by the collapsed U.S. "The capital and liquidity positions of the U.S. reeled from the collapse of Silicon Valley Bank and Signature Bank. Bringing the two rivals together was not without its struggles, but pressure to stave off a systemic crisis won out in the end. It is also far more globally interconnected, with multiple international subsidiaries — making an orderly management of Credit Suisse's situation even more important. and abroad. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure," said UBS Chairman Colm Kelleher in a statement. banking system are strong, and the U.S. to global finance."

Swiss authorities expected to change country's law to bypass UBS shareholder vote.

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The Swiss finance minister said the bankruptcy of a globally important bank would have created irreparable consequences for financial markets. It was not yet ...

FINMA said it will co-ordinate with national and international authorities, namely the Federal Reserve in the United States and the Prudential Regulation Authority in the United Kingdom. The bank was forced to tap $US54 billion in central bank funding as it tried to recover from scandals that have undermined the confidence of investors and clients. The Swiss central bank will supply substantial liquidity to the merged bank, it said at a news conference in the Swiss capital Bern.

The Swiss government is close to announcing a deal for UBS to buy Credit Suisse, its smaller rival, for about $1 billion.

Prices for Credit Suisse shares and bonds dropped sharply all week, as did the cost of insuring its debt against default, despite efforts by Swiss regulators to shore up investor confidence. But Credit Suisse was tarred by scandals over the years — from money laundering to wrong-way trading bets — that left it reeling from losses and damaged its reputation. UBS is expected to pay just a fraction of the roughly 8.8 billion Swiss francs, or $9.5 billion, that Credit Suisse was valued at on Friday, these people said. Not even a $54 billion lifeline from the Swiss National Bank, announced last week, was able to stem the erosion of investor confidence that sank Credit Suisse’s shares to record lows. But Credit Suisse’s troubles were largely of its own making, tied to years of scandals and financial missteps that have cost it billions of dollars in trading losses and legal fines. And Finma, the Swiss financial regulator, said it would temporarily suspend some regulations to help UBS digest its chief competitor.

FRANKFURT — Swiss banking giant UBS will buy the country's second-largest bank Credit Suisse in a deal that will come as a relief to financial markets in ...

It has thus found itself in the eye of the storm when the collapse of Silicon Valley Bank sparked fears of a banking crisis. The expeditious rescue of Credit Suisse was welcomed by the European Central Bank as well as the “With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss National Bank said in a separate The central bank added that UBS and Credit Suisse can obtain a liquidity assistance loan of up to 100 billion francs. FRANKFURT — Swiss banking giant UBS will buy the country’s second-largest bank Credit Suisse in a deal that will come as a relief to financial markets in Europe and across the world. The deal was pushed through in an effort to avoid further turmoil in global banking following the failure of Silicon Valley Bank and another regional lender in the U.S.

UBS will buy rival Credit Suisse for more than $2 billion in a deal brokered by Swiss officials to try and prevent a banking crisis.

In the last two years alone, the bank's stock has fallen by more than 80%. Panicked investors and jittery depositors pulled billions out of the long-troubled Credit Suisse in recent days, leading to worries the bank could become insolvent if emergency measures were not taken. Under the deal, UBS Group AG will buy Credit Suisse for more than $3 billion in an all stock deal.

UBS has agreed to buy rival Credit Suisse, in an eleventh-hour merger engineered by Swiss authorities, as some...

The ECB vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was "instrumental" for restoring calm. Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen welcomed the announcement by the Swiss authorities. New Zealand dipped at the open and Australian shares were set to open down. "I know that there must be still questions that we have not been able to answer," he said. S&P 500 futures were up 0.7 per cent in early trading, adding to earlier gains, while Nasdaq futures rose 0.6 per cent. UBS will pay three billion Swiss francs ($A4.82 billion) for 167-year-old Credit Suisse and assume up to $US5.4 billion ($A8.1 billion) in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023.

Banking giant UBS is buying its smaller rival Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain ...

That fanned fears that Credit Suisse would be the next domino to fall. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system.” Yet the move did not appear to be enough to stem an outflow of deposits, according to news reports. While smaller than its Swiss rival UBS, Credit Suisse still wields considerable influence, with $1.4 trillion assets under management. This means regulators believe its uncontrolled failure would lead to ripples throughout the financial system not unlike the collapse of Lehman Brothers 15 years ago. The stock has seen a long downward slide: It traded at more than 80 francs in 2007.

Key points · UBS will acquire embattled rival Credit Suisse for approximately AU$4.8 billion · The Swiss government is backstopping the deal, expected to be ...

[emergency rescue](https://www.bloomberg.com/news/articles/2023-03-19/here-are-key-takeaways-from-ubs-s-historic-credit-suisse-deal?sref=4jN770vD),” UBS chairman Colm Kelleher said (quoted by Bloomberg). [acquire](https://www.fool.com.au/definitions/mergers-and-acquisitions/) Credit Suisse for an all-stock transaction valued at approximately CHF3 billion (AU$4.8 billion). Now, in a deal backed by the Swiss government and Swiss National Bank in an effort to contain the crisis, UBS will “This acquisition is attractive for UBS shareholders, but let us be clear, as far as Credit Suisse is concerned, this is an [NASDAQ: SIVB](https://www.fool.com.au/tickers/nasdaq-sivb/)), roiled the global banking sector. [liquidity issues](https://www.fool.com.au/2023/03/16/whats-going-on-with-credit-suisse-and-why-is-it-impacting-asx-200-shares/) last week.

Swiss regulators engineered a takeover of Credit Suisse by UBS in an attempt to restore confidence in the country's banking sector.

[sank 8.01%](https://www.cnbc.com/2023/03/17/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html). [stock futures rose](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html)on the news. [buy Credit Suisse for 3 billion Swiss francs ($3.2 billion)](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html). Over in the U.S., First Republic [plunged 32.80%](https://www.cnbc.com/2023/03/17/first-republic-shares-fall-despite-deposit-infusion-dragging-down-other-regional-banks.html)— and a further 15.37% in after-hours trading. Fed officials say they rely on data to determine the trajectory of interest rates. As Doug Roberts, founder and chief investment strategist at Channel Capital Research, said, Fed officials have "to do something, otherwise they lose credibility." Despite rebounding on Thursday amid news of financial support by central banks and financial regulators, on Friday, banks were badly hammered — once again — and dragged down major indexes with them. A stock may skyrocket one day on news it got billions from a cash infusion, and crater the next even though nothing material has changed in the intervening period. The biggest shifts: Visa, Mastercard and Paypal moved to the financial sectors from technology; Target, Dollar General and Dollar Tree joined Walmart as consumer staples from their previous category of consumer discretionary. A bank may be perfectly solvent one minute and collapse from a bank run the next. You can subscribe Like what you see?

Under Swiss regulations, UBS would normally have to grant a six-week period to shareholders to review the acquisition, which would merge the two largest banks ...

However, the aid was insufficient to halt the decline in the bank's share price, which has plummeted to a historic low after its biggest investor refused to provide additional capital, and its chairperson acknowledged the ongoing departure of wealth management clients. According to Globe and Mail reporting, the CHF5.5bn in government guarantees that UBS seeks would cover the costs of shutting down parts of Credit Suisse and potential legal fees. They were working to achieve regulatory consensus over the weekend. According to insiders familiar with UBS's leadership team, they are apprehensive about assuming ownership for Credit Suisse's investment bank, which has been responsible for several of its scandals and financial losses in recent times. However, Financial Times reporting revealed that UBS has indicated that it plans to utilise emergency measures to bypass the consultation period and execute the deal without a shareholder vote. The banks and regulators are in a hurry to finalize the merger before European markets open on Monday.

Credit Suisse is set to be acquitted by its local competitor amid ongoing fears over the bank's viability. The Swiss Federal Department of Finance (FDF), ...

Acquiring Credit Suisse’s capabilities in wealth, asset management, and Swiss universal banking will augment UBS’ strategy of growing its capital-light businesses.” “This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” he said. But UBS chairman Colm Kelleher, who would serve as chair of the combined entity, acknowledged the implications of the deal for Credit Suisse amid ongoing concerns over its viability.

UBS Chairman Colm Kelleher said the acquisition was “attractive” for UBS shareholders, but clarified that, “as far as Credit Suisse is concerned, this is an emergency rescue.”.

The size of Credit Suisse was a concern for the banking system, as was its global footprint given its multiple international subsidiaries. This could set in train renewed jitters about the health of banks." "Acquiring Credit Suisse's capabilities in wealth, asset management and Swiss universal banking will augment UBS's strategy of growing its capital-light businesses." The bank's Chairman Colm Kelleher said the acquisition was "attractive" for UBS shareholders but clarified that "as far as Credit Suisse is concerned, this is an emergency rescue." Credit Suisse shares collapsed by 60% at around 9:05 a.m. London time (5:05 a.m.

The combination of the two businesses is expected to generate annual run-rate of cost reductions of more than USD 8 billion by 2027.

Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76/share for a total consideration of CHF 3 billion. The combination is expected to create a business with more than USD 5 trillion in total invested assets and sustainable value opportunities. The combined investment banking businesses accounts for approximately 25% of Group risk weighted assets. All shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse as merger consideration. UBS Chief Executive Officer Ralph Hamers said: “Bringing UBS and Credit Suisse together will build on UBS’s strengths and further enhance our ability to serve our clients globally and deepen our best-in-class capabilities. Lehmann, Chairman of the Board of Directors of Credit Suisse said: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome.

We'll send you a myFT Daily Digest email rounding up the latest UBS Group AG news every morning. UBS shares tumbled more than 10 per cent in early trading ...

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"Only time will tell how this shotgun wedding is received," one analyst said of merger uniting the Swiss banks.

"The banking system of Europe has not fully recovered from the crisis" in 2008, he said. The deal follows the collapse of two large U.S. As part of the deal, approximately 16 billion francs ($17.3 billion) in higher-risk Credit Suisse bonds will be wiped out, leaving investors with hefty losses. But concerns about risks to the deal, losses for some investors and Credit Suisse's falling market value could renew fears about the health of banks. [urged UBS to take over its smaller rival](https://www.cbsnews.com/news/ubs-purchase-credit-suisse-fallout-silicon-valley-bank/) after a central bank plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) last week failed to reassure investors and customers. Tobias Straumann, an economic history professor at University of Zurich, said the merger was the right move because the U.S. It has faced an array of troubles in recent years, including bad bets on hedge funds, repeated shake-ups of its top management and a spying scandal involving UBS. Shares of Credit Suisse and other banks had tumbled last week after the failure of two banks in the U.S. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further upheaval in the global banking system. In an indication of the frantic, behind-the-scenes deal-making by Swiss authorities to resolve the issue before markets opened, the acquisition was announced late Sunday. The deal added volatility to other European bank stocks, which fell in early trading even as benchmark indexes climbed, before some clawed back their losses. UBS shares initially fell on the Swiss stock exchange but had gained more than 6% in afternoon trading.

The Swiss banking giant is set to absorb its troubled competitor after launching a $5 billion deal pre-approved by regulators. The Swiss Federal Department ...

Acquiring Credit Suisse’s capabilities in wealth, asset management, and Swiss universal banking will augment UBS’ strategy of growing its capital-light businesses. The review found that as at 31 December 2022, the bank’s internal processes were “not effective”, given it did not “design and maintain an effective risk assessment process” used to identify and analyse the risk of” material misstatements”. As at 31 December 2023, Credit Suisse had a Common Equity Tier 1 (CET1) ratio of 14.1 per cent and an average liquidity coverage ratio (LCR) of 144 per cent (since rising to 150 per cent as at 14 March). The measures aimed to address ongoing concerns over the strength of the bank’s balance sheet, which was undermined by “significantly higher withdrawals” of cash deposits and non-renewal of maturing time deposits over the fourth quarter of 2022. Both offers, which expire on Wednesday, 22 March 2023, would help manage Credit Suisse’s “overall liability composition”, while also “optimising interest expense” and allowing the bank to “take advantage of current trading levels to repurchase debt at attractive prices”. Separately, Credit Suisse offered to repurchase US$10 denominated senior debt securities via a tender offer, valued at up to US$2.5 billion (AU$3.7 billion), while also launching a cash tender offer for four Euro denominated senior debt securities at an aggregate consideration of up to €500 million (AU$798 million). [“pre-emptively” strengthen its liquidity](https://www.investordaily.com.au/markets/53042-credit-suisse-pre-emptively-accepts-liquidity-safeguard) by exercising an option to leverage a Covered Loan Facility and a short-term liquidity facility offered by the SNB. As part of the “all-share” transaction, Credit Suisse shareholders have been offered one UBS share for every 22.48 Credit Suisse shares, representing approximately CHF 0.76 (AU$1.22) per share for a total consideration of CHF 3 billion (AU$4.8 billion). “The combination supports our growth ambitions in the Americas and Asia while adding scale to our business in Europe, and we look forward to welcoming our new clients and colleagues across the world in the coming weeks.” “Bringing UBS and Credit Suisse together will build on UBS’ strengths and further enhance our ability to serve our clients globally and deepen our best-in-class capabilities,” UBS chief executive officer and the prospective group CEO of the merged institution, Ralph Hamers, said. Once finalised, the acquisition would involve “managing down” Credit Suisse’s investment bank while reinforcing UBS’ global investment strategy, with the combined investment business to account for approximately 25 per cent of group risk weighted assets. The Swiss Federal Department of Finance (FDF), the Swiss Financial Market Supervisory Authority (FINMA), and the Swiss National Bank (SNB) have offered their full support for the proposed acquisition of Credit Suisse by global investment banking peer UBS.

Family-owned chemicals business Redox has asked UBS to reboot investor marketing for its mooted IPO, asking fund managers out for lunch meetings early next ...

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Credit Suisse's domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, ...

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Peter Milios from Finance News Network with all the news from today's morning trading session on the ASX.

In response, Director, Mr Robert Kirtlan, said, “Within two months of assuming control of Mongoose we have completed a maiden RC program and it has all the hallmarks of being very successful.” Shares are trading 40 per cent higher at 1.4 cents. Shares are trading 41.6 per cent higher at $1.47. The best-performing large cap is Whitehaven Coal (ASX:WHC), trading 5.65 per cent higher at $6.73. The worst-performing large cap is Northern Star Resources (ASX:NST), trading 1.99 per cent lower at $11.59. Besra’s Chairwoman, Jocelyn Bennett commented: “We [now] plan to commence an update of the 2013 feasibility study and accelerate our plans to begin pilot production in the calendar year 2023.” Shares are trading 80 per cent higher at 7.2 cents MGC Pharmaceuticals (ASX:MXC) announced that ArtemiC™, their proprietary clinically tested for COVID 19 treatment, has been listed as over-the-counter status on the National Drug Code Database of the US FDA. Markets in Japan are closed for a holiday. Iron ore is 4.2 per cent lower at US$126.50 a tonne. Mincor Resources (ASX:MCR) has received a $1.40 cash takeover offer from Wyloo Consolidated Investments, an investment vehicle of Australian billionaire Twiggy Forest. In response, Roby Zomer, CEO and Managing Director of MGC Pharmaceuticals, commented: “[This] provides significant access to the largest healthcare market in the world and stands as a major milestone MGC’s growth progression.” Shares are trading 42.9 per cent higher at 1 cent. At noon, the S&P/ASX 200 is 1.3 per cent higher at 6,986.80. The best-performing sector is Energy, up 2.1 per cent.