UBS bank

2023 - 3 - 20

UBS is buying Credit Suisse in bid to halt banking crisis (CNN)

Switzerland's biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic ...

It had more than 50,000 employees at the end of 2022. It was worth just $8 billion at the end of last week. The global headquarters of UBS and Credit Suisse are just 300 yards apart in Zurich but the banks’ fortunes have been on very different paths recently. Shares in the 167-year-old bank fell 25% over the week, money poured from investment funds it manages and at one point account holders were withdrawing deposits of more than $10 billion per day, the Financial Times reported. “UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement. In 2022, it recorded its worst loss since the global financial crisis.

UBS to acquire Credit Suisse (UBS)

Creates leading global wealth manager with USD 5 trillion of invested assets across the Group · Extends UBS lead in Swiss home market · UBS strategy unchanged, ...

Under the terms of the all-share transaction, 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 combined businesses will be a leading asset manager in Europe, with invested assets of more than USD 1.5 trillion. 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. It will further strengthen UBS’s position as the leading Swiss-based global wealth manager with more than USD 3.4 trillion in invested assets on a combined basis, operating in the most attractive growth markets. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure. The combination is expected to create a business with more than USD 5 trillion in total invested assets and sustainable value opportunities.

UBS agrees 'emergency rescue' of Credit Suisse (BBC News)

The deal, backed by the Swiss government, follows weekend talks aimed at preventing its collapse.

The acid test as to whether this Swiss rescue has calmed nerves in the financial world will be when financial markets open on Monday - which is why it was so important to get this done on Sunday night. Credit Suisse has become the latest and most important casualty of a crisis of confidence that has already seen the failure of two mid-sized US banks and an emergency industry whip-round for another. That has spooked investors and seen the share prices of all banks fall with those considered weakest hit hardest. The Bank of England said it welcomed the "comprehensive set of actions" set out by the Swiss authorities. The Bank of England said it welcomed the "comprehensive set of actions". The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.

UBS to take over Credit Suisse for $4.8 billion in move backed by ... (ABC News)

Beleaguered bank Credit Suisse is bought out by Swiss rival UBS as the nation's president says an uncontrolled collapse would have had "incalculable ...

"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 central bank and other authorities said. Swiss regulators were forced to step in and orchestrate a deal to prevent a crisis of confidence in Credit Suisse spilling over into the broader financial system. The deal includes 100 billion Swiss francs ($160 billion) in liquidity assistance for UBS and Credit Suisse from the Swiss central bank.

'Disaster': Rage as UBS buys Credit Suisse (NEWS.com.au)

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.

UBS Buys Beleaguered Credit Suisse To Avoid A Potential Financial ... (Forbes)

Credit Suisse, the troubled Swiss-based investment bank, received an offer by their intra-country rival Union Bank of Switzerland (UBS) to purchase it for ...

Similarly, [social-media-induced comments](https://www.cnn.com/2023/03/15/politics/bank-collapse-credit-suisse-what-matters/index.html) spooked Credit Suisse’s wealthy clients to take their funds elsewhere. U.K.-based investment bank Barclays, with a strong presence in the U.S., is exiting about 200 employees in its [banking and trading units](https://www.cnbc.com/2022/11/09/wall-street-layoffs-pick-up-steam-as-citigroup-and-barclays-cut-hundreds-of-workers.html). [caught the layoff contagion](https://www.forbes.com/sites/jackkelly/2022/12/08/layoff-contagion-spreads-from-the-tech-sector-to-everywhere-else/?sh=2ca9dd5e2fe4). government to backstop any losses](https://www.forbes.com/sites/jackkelly/2023/03/11/some-silicon-valley-bank-workers-will-be-offered-a-premium-to-their-salary-to-help-the-fdic-start-sorting-things-out/?sh=5d9a5476764b) emanating from SVB’s shutdown, feverishly trying to get their money out of the bank, causing concern and some panic. Credit Suisse is also global and the second largest Swiss bank [with around 50,480 employees](https://www.statista.com/statistics/270265/credit-suisse-employees-since-2005/). Credit Suisse previously announced before the SVB implosion that it would ax around [5,000 jobs](https://www.reuters.com/markets/europe/credit-suisse-weighs-cutting-around-5000-jobs-source-2022-09-01/). [laid off hundreds of people in its mortgage division](https://www.bloomberg.com/news/articles/2022-12-01/wells-fargo-cuts-hundreds-more-mortgage-employees-on-industry-slowdown#xj4y7vzkg) because of high interest rates hurting the real estate market. The federal government pushed JPMorgan to absorb the collapsing Bear Stearns investment bank, and Bank of America took on the once-venerable Merrill Lynch. JPMorgan CEO Jamie Dimon bailed out Bear Stearns at the behest of the U.S. [the deal may be subject to change](https://www.wsj.com/articles/ubs-offers-1-billion-to-take-over-credit-suisse-bfac51fa). Swiss regulators spearheaded the deal to [help restore trust and calm](https://www.wsj.com/articles/ubs-in-talks-to-take-over-credit-suisse-ed932b01?mod=article_inline) in a highly volatile global banking environment over the last few weeks. Top-tier New York City-based investment bank Goldman Sachs let go of around [4,000 white-collar](https://www.semafor.com/article/12/16/2022/goldman-sachs-to-lay-off-up-to-4000-people) professionals, impacting around 8% of the bank’s global workforce.