Swiss Central Banks Race To Calm Markets After UBS Takes Over Credit Suisse
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Swiss Central Banks and regulators raced to reassure markets and customers Monday, March 20, 2023, after one of the world’s largest banks exited the global stage in a forced takeover. UBS has taken over Credit Suisse at the request of the Swiss Authorities to avoid bankruptcy of the bank. The details of the 3.2 billion dollar deal for USB and Credit Suisse rattled some investors. But regulators have sought to make one thing clear: The focus is on depositors and the health of the overall banking system, in the video published on March 20, 2023, by DW News, as “Central banks race to calm markets after UBS takes over Credit Suisse | DW News“, below:
Please take a look at the excerpt from wikipedia, in italics, below:
Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global “bulge bracket” banks providing services in investment banking, private banking, asset management, and shared services. It is known for strict bank–client confidentiality and banking secrecy. The Financial Stability Board considers it to be a global systemically important bank. Credit Suisse is also a primary dealer and Forex counterparty of the Federal Reserve in the United States.
Credit Suisse was founded in 1856 to fund the development of Switzerland’s rail system. It issued loans that helped create Switzerland’s electrical grid and the European rail system. In the 1900s, it began shifting to retail banking in response to the elevation of the middle class and competition from fellow Swiss banks UBS and Julius Bär. Credit Suisse partnered with First Boston in 1978 before buying a controlling share of the bank in 1988. From 1990 to 2000, the company purchased institutions such as Winterthur Group, Swiss Volksbank, Swiss American Securities Inc. (SASI), and Bank Leu. The biggest institutional shareholders of Credit Suisse include the Saudi National Bank (9.88%), the Qatar Investment Authority and BlackRock (about 5% each), Dodge & Cox, Norges Bank and the Saudi Olayan Group.
The company was one of the least affected banks during the global financial crisis, but afterwards began shrinking its investment business, executing layoffs and cutting costs. The bank was at the center of multiple international investigations for tax avoidance which culminated in a guilty plea and the forfeiture of US$2.6 billion in fines from 2008 to 2012. By the end of 2022, Credit Suisse had approximately CHF 1.3 trillion in assets under management.
In order to prevent the bank’s collapse and following negotiations with the Swiss government, UBS announced its intent to acquire Credit Suisse for $3.25 billion (CHF 3 billion) on March 19, 2023.
UBS has taken over Credit Suisse at the request of the Swiss Authorities to avoid the BANKRUPTCY of the bank. Credit Suisse is the latest bank to be hit by the current Banking Crisis and last week received a $54 Billion Bailout from the Swiss Authorities however this did not prove to be sufficient to stem the crisis and an additional $173 Billion has now been provided as part of an extensive BAILOUT. This Crisis comes within days of the Collapse of SILICON VALLEY BANK, Signature Bank and the Liquidation of Silvergate Bank. In this video I look at the Credit Suisse BAILOUT and discuss the implications for the Global Economy, in the video published on March 20, 2023, by Joe Blogs, as “BANK RUNS – $173 Billion Credit Suisse Bailout by UBS as Banking Crisis Worsens & Spreads to Europe“, below:
European bank shares have dropped sharply after troubled bank Credit Suisse was bought by its Swiss rival UBS in a government-backed deal. UBS, which purchased Credit Suisse at a fraction of its closing market value before the weekend, is now down 8% compared with an earlier slide of 13%. Credit Suisse was the most significant failure of a crisis of confidence in the banking sector that also saw the collapse of Silicon Valley Bank in the US. Despite market turmoil in recent weeks, experts are not forecasting a repeat of the 2008 financial crisis, in the video published on March 20, 2023, by BBC News, as “European bank shares drop after Credit Suisse takeover – BBC News“, below:
Bob Diamond, Atlas Merchant Capital CEO, joins ‘Squawk Box’ to discuss the recent sale of Credit Suisse, shareholder considerations in the UBS sale, and more, in the video published on March 20, 2023, by CNBC Television, as “UBS purchase of Credit Suisse was a forced marriage after bankruptcy: Atlas Merchant Capital CEO“, below:
How a run of bad news took a 167-year-old institution known for Swiss stability to the brink. Here’s a look at a history of crises at Credit Suisse, in the video published on March 19, 2023, by Bloomberg Television, as “Credit Suisse’s Crisis“, below:
Shares in Credit Suisse have plunged to a record low, in the wake of last week’s collapse of Silicon Valley Bank in the US. The Swiss bank – which has been beset by problems – saw its share price fall by as much as 30% at one point. Credit Suisse insists its financial position is not a concern. Investors are concerned about the state of the troubled banking giant and have already been spooked by US bank failures, in the video published on March 15, 2023, by BBC News, as “Credit Suisse: What is happening to the Swiss banking giant? – BBC News“, below:
Gathered, written, and posted by Windermere Sun-Susan Sun Nunamaker More about the community at www.WindermereSun.com
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