UBS Group AG is reportedly considering acquiring all or parts of Credit Suisse Group AG at the request of Swiss regulators, after the latter bank was hit hard by a crisis of confidence. Sources familiar with the matter say that Swiss officials are pressing UBS to explore potential solutions for Credit Suisse. The boards of the two Swiss banks are understood to be holding separate meetings over the weekend to consider a merger. The talks have been orchestrated by the Swiss National Bank and regulator Finma. It is hoped that an announcement will be made by Sunday evening. However, the situation is fluid and may change.
Important Details about UBS to Explore Credit Suisse Deal in Crisis Combination –
– UBS may acquire all or part of Credit Suisse at the urging of Swiss regulators
– Swiss officials are pushing UBS to explore ways it can help stabilize Credit Suisse
– Talks are ongoing and it’s uncertain whether a deal will result
– The goal is for an announcement by Sunday, though the situation remains fluid
– A government-brokered deal would address a rout in Credit Suisse that sent shock waves across the global financial system
– Credit Suisse’s market value has plunged to about $8 billion from a peak of over $100 billion in 2007
– Credit Suisse has faced a series of blowups, scandals, leadership changes, and legal issues in recent years
– Clients have pulled over $100 billion of assets in the last three months of 2020 out of concerns for its financial health
– UBS would prefer to focus on its own wealth-centric standalone strategy and is reluctant to take on risks related to Credit Suisse.
UBS Explores Acquisition of Parts of Credit Suisse
Swiss regulators are urging UBS Group AG to explore an acquisition of all or parts of Credit Suisse Group AG, according to sources knowledgeable about the matter. The move follows recent market turbulence that has hit Credit Suisse hard, and comes at a time when the Swiss government is keen to stabilise the bank. Should a deal take place, it is thought that it would be announced by Sunday evening at the latest, and would be orchestrated by the Swiss National Bank and regulator, Finma.
Credit Suisse has faced numerous problems over the years, including scandals, legal issues, and changes of leadership. It saw a loss of 7.3 billion francs last year, which wiped out a decade’s worth of profitability. Over the last three months of 2022, Credit Suisse experienced over $100 billion of asset outflows as investors became concerned about its financial health. Even after a 4 billion franc capital raise, the outflows continue.
UBS, which has a market value of 60 billion francs, is said to prefer focusing on its own standalone strategy, rather than taking risks associated with the embattled Credit Suisse. Credit Suisse’s market value has fallen to roughly 7.4 billion francs, compared to a peak of over 100 billion francs in 2007.
It is unclear whether any deal between the two banks will result from the ongoing deliberations.
Swiss Officials Urge UBS to Assist Credit Suisse
Swiss regulatory authorities are pressuring UBS to explore ways of aiding Credit Suisse, which has been hit hard by recent market turbulence. The discussions are ongoing, and UBS is considering various options with regards to the troubled bank.
Credit Suisse was forced to tap shareholders for a 4 billion franc capital raise to shore up its balance sheet following asset outflows of over $100 billion in the last three months of 2022. Despite the capital raising, outflows continue, leaving Credit Suisse in a precarious position.
Swiss Officials Push for Government-Brokered Deal Between UBS and Credit Suisse
Regulatory authorities and the Swiss National Bank are pushing for a government-brokered deal between UBS and Credit Suisse, according to sources with knowledge of the matter. The move comes as a means of stabilising Credit Suisse, which has been hit by numerous problems, including scandals, legal issues, and leadership changes.
Should a deal be reached, it would be announced by Sunday evening at the latest. However, UBS is said to be reluctant to take on the risks associated with Credit Suisse, preferring instead to focus on its own wealth-centric standalone strategy.
Credit Suisse’s market value has fallen to around 7.4 billion Swiss francs, compared to over 100 billion francs in 2007. The bank has seen asset outflows of over $100 billion in the last three months of 2022 and has tapped shareholders for a 4 billion franc capital raise.
UBS and Credit Suisse to Meet Separately to Discuss Government-Brokered Deal
UBS and Credit Suisse are set to meet separately over the weekend to discuss a potential government-brokered deal, according to the Financial Times. The moves follow concerns about Credit Suisse’s financial health, including asset outflows of over $100 billion in the last three months of 2022.
The discussions are being orchestrated by the Swiss National Bank and regulator, Finma. A deal is expected to be announced by Sunday evening at the latest, but it is unclear if any agreement will be reached.
UBS Reluctant to Take on Risks Associated with Credit Suisse
UBS is said to be reluctant to take on the risks associated with Credit Suisse, rather preferring to focus on its own standalone strategy. The bank has been urged by Swiss regulators to explore ways of assisting Credit Suisse following recent market turbulence, but UBS is thought to be wary of the risks associated with the troubled bank.
Credit Suisse has experienced significant problems in recent years, including scandals, legal issues, and changes of leadership. The bank saw a loss of 7.3 billion francs last year, which wiped out a decade’s worth of profitability. Despite a 4 billion franc capital raise, the outflows continued during the final quarter of 2022.
Government-Brokered Deal Could Stabilise Credit Suisse
Swiss regulators are urging UBS to explore ways of aiding Credit Suisse, which has been hit by numerous problems in recent years. The bank saw a loss of 7.3 billion francs last year, which wiped out a decade’s worth of profitability. It has also been beset with scandals, legal issues, and leadership changes.
Should a deal be reached between UBS and Credit Suisse, it is expected to be announced by Sunday evening at the latest. The move is part of a government-brokered effort to stabilise Credit Suisse, which has seen asset outflows of over $100 billion in the last three months of 2022. A deal between the two banks would be orchestrated by the Swiss National Bank and regulator, Finma.
UBS Unwilling to Take Risks Associated with Credit Suisse
UBS is said to be reluctant to take on the risks associated with Credit Suisse, despite pressure from Swiss regulators to explore ways of aiding the troubled bank. Although discussions are ongoing between the two banks, it is unclear whether any agreement will be reached.
Credit Suisse’s problems have been well-documented over the years, with scandals, legal issues, and a revolving door of leadership. The bank saw a loss of 7.3 billion francs last year, which wiped out a decade’s worth of profitability. Despite a 4 billion franc capital raise, the outflows continue.
Government-Brokered Deal Between UBS and Credit Suisse Could Stabilise Bank
Swiss regulators are urging UBS to explore ways of aiding Credit Suisse, which has struggled with numerous problems over the years. A government-brokered deal between the two banks could help stabilise Credit Suisse, which has seen asset outflows of over $100 billion in the last three months of 2022.
However, UBS is said to be reluctant to take on the risks associated with Credit Suisse, preferring instead to focus on its own wealth-centric standalone strategy. Despite ongoing discussions, it is unclear whether any agreement will be reached.
Credit Suisse Seeks Time to Turnaround
Credit Suisse is seeking time to turnaround after recently winning a $54 billion credit line from the Swiss central bank. The bank has been hit hard by a series of blowups, scandals, leadership changes, and legal issues in recent years. Despite a 4 billion franc capital raise, the bank saw over $100 billion of asset outflows during the final three months of 2022.
Although Swiss officials are urging UBS to explore ways of aiding Credit Suisse, it is unclear whether any deal will result. UBS is said to be reluctant to take on risks associated with the embattled bank, favouring instead its own standalone strategy focused on wealth management.