UBS

The deal, which could be signed as early as this evening, values Credit Suisse at around $7 billion less than its market value at Friday's close.

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 is also far more globally inter-connected, with multiple international subsidiaries — making an orderly management of Credit Suisse's situation even more important. Credit Suisse's scale and potential impact on the global economy is much greater than the U.S. The country is reportedly considering whether it would take over the bank completely or hold a significant equity stake. The fast-moving nature of the negotiations means the terms of any end deal could be different from those reported. [worst weekly decline since the onset of the coronavirus pandemic](https://www.cnbc.com/2023/03/17/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html), despite an announcement that it would access a loan of up to 50 billion Swiss francs ($54 billion) from the Swiss central bank.

Takeover deal by rival Swiss bank could be signed as soon as Sunday.

Swiss president Alain Berset said it wasn't possible to restore confidence in Credit Suisse and called a takeover by UBS the "best solution". [the collapse of Silicon Valley Bank in the US](https://www.telegraph.co.uk/business/2023/03/13/why-silicon-valley-bank-collapse-bailout/). [a collapse in confidence in the lender last week](https://www.telegraph.co.uk/business/2023/03/19/how-swiss-banking-went-rolls-royce-toxic-mess/).

It is hoped that securing Credit Suisse will avert the contagion of the kind seen in the financial crisis of 2008, when banks including Bear Sterns and Lehman ...

This was always a deal that the Swiss government had resisted. The only alternative to this deal happening was going to be when financial markets opened on Monday in Asia and then in Europe, some form of nationalisation or resolution of Credit Suisse which would have deepened the sense of crisis in the industry. But let's be clear - all the parties involved in this deal have effectively been strong-armed into it by the crisis of confidence which has erupted at Credit Suisse, and which has been fomenting for some time. In a statement, the Swiss central bank and other officials said that the agreement represented "a solution...to secure financial stability and protect the Swiss economy in this exceptional situation". The credit line was agreed in a move aimed at reassuring markets and depositors, but it failed to stem a rush of customer withdrawal, prompting a request from the Swiss government for the rival UBS to consider a takeover. The Swiss central bank will supply substantial liquidity to the merged bank in a deal that it says is aimed at securing financial stability.

The two largest banks in the wealthy Alpine nation famed for its banking prominence have been in negotiations with the government throughout the weekend.

That saw the SNB step in overnight with a $54-billion lifeline. Swiss bank UBS is prepared to take over troubled rival Credit Suisse but only for a knockdown price, reports said today [Future of Credit Suisse hangs in the balance as efforts intensify to rescue stricken bank amid growing global banking crisis](/news/article-11876895/Future-Credit-Suisse-hangs-balance-efforts-intensify-rescue-stricken-bank.html) Swiss bank UBS is prepared to take over its troubled rival Credit Suisse but only for a knockdown price, reports said today. Swiss bank UBS 'is prepared to take over troubled rival Credit Suisse but only for a knockdown price' The Financial Times, which was the first on Friday to report the prospect of Switzerland's biggest bank swallowing up Credit Suisse, said UBS had offered to buy it for up to $1billion.

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.

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.

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.

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.

Regulators engineer takeover of stricken bank by larger Swiss competitor after frantic weekend.

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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 is set to take over its troubled Swiss rival Credit Suisse for $3.25 billion following weekend crunch talks aimed at preventing a wider international ...

That saw the SNB step in overnight with a $54-billion lifeline. In 2022, the bank suffered a net loss of $7.9 billion and expects a “substantial” pre-tax loss this year. The Swiss Bank Employees Association said there was “a great deal at stake” for the 17,000 Credit Suisse staff, plus tens of thousands of jobs outside of the banking industry potentially at risk. With the “risk of contagion” for other banks, including UBS itself, the takeover has “laid the foundation for greater stability both in Switzerland and internationally”, she said. Credit Suisse said in a statement that UBS would take it over for “a merger consideration of three billion Swiss francs ($3.25 billion, €3.04 billion)”. The wealthy Alpine nation is famed for its banking prominence and Berset said the takeover was the “best solution for restoring the confidence that has been lacking in the financial markets recently”.

Also in today's newsletter, most of Signature Bank to be acquired by Flagstar owner.

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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.

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. The world's leading central banks are taking ...

“The capital and liquidity positions of the U.S. The phrase too big to fail really does spring to mind here, and this morning’s weakness in Asia markets serves to reinforce concerns about these types of writedowns and any spillover effects on the rest of the banking sector. The many scandals at Credit Suisse in recent years have tainted Switzerland’s financial sector. So we have contained the risks in the markets. Credit Suisse is a 167 year old institution that has been instrumental to the growth of the Swiss economy. Some $17bn of risky bonds issued by Credit Suisse are being wiped out as part of the deal. There is also a risk of spillover effect on global credit (although we note that senior secured bonds seem quite resilient including CS senior secured bonds which are jumping in price this morning). They pushed down US government bond prices, which was the cause of the losses at Silicon Valley Bank which failed earlier this month. These are ‘contingent convertible’ bonds that are riskier than other debt instruments and designed to get wiped out in a crisis – or converted to equity. Typically, AT1 bonds is meant to be above equity in the debt heirachy. In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier One be required to be written down. The deal hammered out yesterday sees UBS pay almost $3.25bn (£2.65bn) for Credit Suisse, or 0.76 Swiss francs per share in its own stock.

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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