Credit Suisse

The bank's agreement to be bought by rival UBS marks the end of 167 years as an independent institution.

H&R Block Coupon Code](https://www.wsj.com/coupons/hrblock) [Save up to $15 with TurboTax coupon March 2023](https://www.wsj.com/coupons/turbotax) The agreement marks the end of 167 years as an independent institution, a humbling comedown for a bank that once went toe-to-toe with U.S.

Asian markets trade lower as investors assess UBS' $3.2 billion purchase of Credit Suisse.

Bancorp](/quotes/USB/) lost 2%. [First Republic](/quotes/FRC/). [Bank of America](https://www.cnbc.com/quotes/BAC/), [Wells Fargo](https://www.cnbc.com/quotes/WFC/), [Citigroup](https://www.cnbc.com/quotes/C/) and [JPMorgan Chase](https://www.cnbc.com/quotes/JPM/) said Thursday they would contribute about $5 billion apiece to First Republic as part of the rescue plan. [Truist Financia](/quotes/TFC/)l and [State Street](/quotes/STT/) fell about 3% each before the bell, while [PNC](/quotes/PNC/), [Bank of New York Mellon](/quotes/BK/) and [U.S. on what happens with the state of the markets and this financial instability risk over the next few days." Friday's nosedive has brought the stock down more than 70% from where it started the week. The combined bank will have $5 trillion of invested assets, according to UBS. But market observers say the central bank's next decision on interest rates has been made less certain over the past week amid the bank crisis. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. It said, however, Flagstar's bid did not include the roughly $4 billion in deposits related to Signature's digital banking business. dollar swap line arrangements from weekly to daily.

We've watched the bank lurch from scandal to scandal for so long that it's hard to recall all of them at this point.”

Executives were already under fire for failing to protect the bank and wealthy clients from the collapse of a $10 billion suite of funds it ran with now-disgraced financier Lex Greensill. As part of an investigation prompted by the Khan episode, the Swiss banking regulator in October 2021 uncovered five additional cases of surveillance from 2016 to 2019. The once-lucrative industry had imploded, and one of the most problematic deals was a $457 million loan for the leveraged buyout of Ohio Mattress Co. The takeover was part of an aggressive growth strategy, including acquisitions of Swiss rivals, and the complexity kept growing. “Unfortunately, the loss of confidence from the markets and customers was no longer able to be halted.” “In Zurich, we’ve had a ring-side seat to this spectacular fiasco in slow-motion,” said Matthew Ruesch, founder and managing partner of Broad Creek Capital, a family office. The combined assets of UBS and Credit Suisse are roughly double the size of Switzerland’s gross domestic product, and Sunday newspapers from tabloids to broadsheets were filled with stories about the looming demise of a national icon. It tended the fortunes of Arab royals and Russian oligarchs and tilted at the giants of Wall Street. In recent years, the bank suffered a revolving door of senior management, with each leadership change putting more pressure on performance. With the country’s banking sector at risk, Swiss authorities stepped in to push UBS to become a reluctant white knight. The government-brokered sale marks the Swiss bank’s final fall from grace, succumbing to a crisis of confidence that threatened to spread to global financial markets. After top shareholder Saudi National Bank told Bloomberg Television on Wednesday that it would “ [absolutely not](https://www.bloomberg.com/news/articles/2023-03-15/credit-suisse-top-shareholder-rules-out-more-assistance-to-bank-lf9gfhbr)” invest more in the lender, a rout was on.

Asian financial authorities say Swiss lender's takeover not likely to affect stability of local banks.

China’s blue-chip CSI300 and Shanghai Composite Index made gains, as new monetary-easing measures by Beijing helped to offset the concerns about global banking. “The exposures of the local banking sector to Credit Suisse are insignificant,” HKMA said in a statement. “The Hong Kong banking sector is resilient with strong capital and liquidity positions.

Asia Pacific markets edged slightly lower on Monday morning as investors reacted to news of a Credit Suisse bailout by its bigger rival UBS.

The Dow [(INDU)](https://money.cnn.com/data/markets/dow/?source=story_quote_link) fell 1.2%, and the S&P 500 [(SPX)](https://money.cnn.com/data/markets/sandp/?source=story_quote_link) shed 1.1%. The Nasdaq Composite [(COMP)](https://money.cnn.com/data/markets/nasdaq/?source=story_quote_link) dipped 0.7%. US stock futures rose on Sunday night following the news. “Their overall exposures to the Hong Kong market are not significant.” The S&P/ASX 200 in Australia slipped 0.8%. [(N225)](https://money.cnn.com/data/world_markets/nikkei225/?source=story_quote_link) index fell 0.7%, while South Korea’s Kospi [(KOSPI)](https://money.cnn.com/data/world_markets/kospi/?source=story_quote_link) was flat in morning trade. [another day of losses](https://www.cnn.com/business/live-news/stock-market-credit-suisse-svb-banking-collapse-03-17-23/h_eee0672e6f5293070c4a5c89702e2049) on Wall Street on Friday, as investors continued to fret over the health of the global banking sector. [told a conference](https://www.rba.gov.au/speeches/2023/sp-ag-2023-03-20.html) Monday. [(UBS)](https://money.cnn.com/quote/quote.html?symb=UBS&source=story_quote_link), agreed to buy Credit Suisse [(CS)](https://money.cnn.com/quote/quote.html?symb=CS&source=story_quote_link) in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month. [(HSI)](https://money.cnn.com/data/world_markets/hang_seng/?source=story_quote_link) tumbled 1.5% at its opening. [a statement](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2023/03/20230320-3/), adding that the assets of Credit Suisse’s local branch were worth approximately 100 billion Hong Kong dollars ($12.7 billion) or “less than 0.5% of the total assets of the Hong Kong banking sector.” [Credit Suisse bailout](https://www.cnn.com/2023/03/19/business/credit-suisse-ubs-rescue/index.html) by its bigger rival UBS.

The deal, in which Switzerland's biggest bank will take over the second-largest in the country, was vital to prevent irreparable economic turmoil spreading ...

The decisions taken in Bern "are instrumental for restoring orderly market conditions and ensuring financial stability," she said. That saw the SNB step in overnight with a $54-billion lifeline. 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. Finance Minister Karin Keller-Sutter said that bankruptcy for Credit Suisse could have caused "irreparable economic turmoil" and "huge collateral damage" for the Swiss financial market, not to mention the "risk of contagion" for other banks, including UBS itself. Credit Suisse said in a statement that UBS would take it over for "a merger consideration of three billion Swiss francs ($3.25 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".

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, 17,000 of those in Switzerland. 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. UBS said it expects to generate cost savings of $8 billion per year by 2027. It was worth just $8 billion at the end of last week. "The capital and liquidity positions of the US. The emergency takeover was agreed to after a days of frantic negotiations involving financial regulators in Switzerland, the United States and United Kingdom. "We have been engaging closely with international counterparts throughout the preparations for today's announcements and will continue to support their implementation," it said in a statement. "UBS today announced the takeover of Credit Suisse," the Swiss National Bank said in a statement. 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. "They are instrumental for restoring orderly market conditions and ensuring financial stability. In 2022, it recorded its worst loss since the global financial crisis. UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse, about 60% less than the bank was worth when markets closed on Friday.

UBS Group emerged as Switzerland's one and only global bank with a state-backed rescue of its smaller peer Credit Suisse..

“In the past, when a deal between Credit Suisse and UBS was discussed, a sticking point would be concentration, especially in the domestic market,” said Morningstar’s Scholtz. UBS also gets to keep the jewel in Credit Suisse’s crown, the domestic bank. If UBS is not required to do an IPO of it, it could make sense for them to keep it, there are lots of synergies.” Credit Suisse had a market value of about $8 billion at the close on Friday. UBS is also taking out a big competitor in securities trading. It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just meters apart. banks and a rout in Credit Suisse shares have sent shock waves through markets over the past week. UBS earned $7.6 billion in profit in 2022, while Credit Suisse lost $7.9 billion. The two lenders have been pillars of global finance for decades. Credit Suisse’s shares were down 74 percent from a year ago, while UBS’s are relatively flat. Switzerland is pledging more than 160 billion francs ($173 billion) in loans and guarantees to underpin the new group, guarding against further risks undermining the lender. Following the 2008 financial crash, politicians pledged to never bail out banks again.

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.

S&P 500 futures rose 0.7% in bumpy trade and bonds fell as investors reckoned less immediate fears of financial instability reduced the likelihood of rate cuts ...

Financials [(.AXFJ)](https://www.reuters.com/quote/.AXFJ) in Australia fell 0.8% and the ASX 200 [(.AXJO)](https://www.reuters.com/quote/.AXJO) fell 0.5%. The safe-haven yen eased slightly to 132.39 per dollar. The euro rose 0.1% to $1.0682. The Asia day offered an encouraging start, with Japanese yen cross-currency swaps , a measure of non-U.S. "It's the irony of good news reflecting how bad things are. A top Australian central banker on Monday said stress in the global banking system was mainly confined to a small number of poorly managed banks and was just one of many considerations for domestic monetary policy. [major banks](/business/finance/two-major-banks-europe-worry-about-contagion-look-regulators-reassurance-sources-2023-03-19/) in Europe are examining scenarios of contagion in the region's banking sector and are looking to the Fed and the ECB for stronger signals of support, two senior executives close to the discussions told Reuters. Register for free to Reuters and know the full story Central banks including the Fed, the European Central Bank and Bank of Japan pledged to deepen support for liquidity, by increasing the frequency of seven-day dollar-swap operations from weekly to daily. [(.IBNKS.T)](https://www.reuters.com/companies/.IBNKS.T), while the broader Nikkei [(.N225)](https://www.reuters.com/quote/.N225) fell 0.2%. [buy Credit Suisse](/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) for 3 billion francs ($3.2 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities. SINGAPORE, March 20 (Reuters) - Asian stocks steadied and U.S futures rose on Monday in relief at a weekend rescue deal for Credit Suisse and a concerted effort from central banks to shore up the mood, though trade was tense and volatile as contagion fears stalked financial shares.

Swiss regulators announced that UBS, Switzerland's largest bank, would take over the troubled Credit Suisse.

But in this case, owners of stock in Credit Suisse received one UBS share for every 22.48 shares they owned, according to the terms of the deal. Some investors said the deal valued Credit Suisse so cheaply that it could prompt a reassessment of the value of other banks. The UBS acquisition of Credit Suisse, which was brokered by the Swiss authorities, came after another weekend of frenzied activity by U.S. The $3.2 billion acquisition by UBS of Credit Suisse, Switzerland’s oldest bank, was announced on Sunday by the Swiss Financial Markets Supervisory Authority. The central bank is expected to raise interest rates again, turning the screws on an economy already showing signs of slipping from a year of rapid rate rises. A number of small lenders in the United States came under renewed pressure last week.

We'll send you a myFT Daily Digest email rounding up the latest Credit Suisse Group AG news every morning. Banking is a massive, complicated and delicate ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

Banking stocks tumbled on Monday as initial relief over a historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group gave way to ...

"I know that there must be still questions that we have not been able to answer," he said. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said. The MSCI index for financial stocks in Asia ex-Japan Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. regional banks and moral hazard. [(FRC.N)](https://www.reuters.com/companies/FRC.N), an institution rocked by the failures of Silicon Valley and Signature Bank [(SBNY.O)](https://www.reuters.com/companies/SBNY.O). The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. [only global bank](/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) and the Swiss economy more dependent on a single lender. [according to a memo](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to staff seen by Reuters. [moving some assets](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to another bank if concentration was a concern. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) [will pay](/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-16/) 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) and assume up to $5.4 billion in losses. [angering some of the holders](/business/finance/credit-suisse-writes-down-17-bln-bonds-zero-angering-holders-2023-03-19/) of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

Too much asset concentration can be a concern for wealthy customers.

UBS said it expected annual cost savings of some $7 billion by 2027. UBS chairman Colm Kelleher told a media conference that it would wind down Credit Suisse’s investment bank, which has thousands of employees worldwide. “We do not expect there to be any disruption to client services. “For now, assets are still legally separated. [undisputed global leader in managing money for the wealthy](https://www.rappler.com/business/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland/) through the takeover of its [main rival](https://www.rappler.com/business/explainer-credit-suisse-bank-reaching-crisis-point-march-2023/), triggering some concerns about concentration risks for clients. [historic Swiss-backed acquisition of the troubled bank by UBS Group](https://www.rappler.com/business/ubs-agrees-buy-credit-suisse-assume-losses-march-2023/).

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 and Credit Suisse have been pillars of global finance for decades. With the takeover, UBS becomes the undisputed global leader in managing money for the ...

“In the past, when a deal between Credit Suisse and UBS was discussed, a sticking point would be concentration, especially in the domestic market,” said Morningstar’s Scholtz. UBS also gets to keep the jewel in Credit Suisse’s crown, the domestic bank. Late last year, speculation that the bank would go bust drove clients to pull tens of billions, sealing its fate. If UBS is not required to do an IPO (initial public offering) of it, it could make sense for them to keep it, there are lots of synergies.” [enhance dollar swap lines](https://www.rappler.com/business/central-banks-try-calm-markets-after-ubs-deal-buy-credit-suisse-march-19-2023/), helping calm investors rattled by turmoil in the banking sector. UBS is also taking out a big competitor in securities trading. Credit Suisse had a market value of about $8 billion at the close on Friday, March 17. It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just meters apart. The two lenders have been pillars of global finance for decades. Switzerland is pledging more than 160 billion francs ($173 billion) in loans and guarantees to underpin the new group, guarding against further risks undermining the lender. “Under normal circumstances, I would say it is an absolutely fantastic deal for UBS,” said Johann Scholtz, equity analyst at Morningstar, covering European Banks, Amsterdam. Following the 2008 financial crash, politicians pledged to never bail out banks again.

European markets are heading for a fall at Monday's open, with regional markets lacking direction at the start of the new trading week.

stock futures](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html) were mixed. London time after the [latter agreed to an emergency takeover](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) of its embattled rival. The combined bank will have $5 trillion of invested assets, according to UBS. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. [Credit Suisse](/quotes/CSG.N-CH/) shares were down 61.95% in pre-market trade via private bank Julius Baer, Reuters reported at 8:14 a.m. [Asia-Pacific markets largely fell on Monday](https://www.cnbc.com/2023/03/20/asia-markets-ubs-credit-suisse-china-loan-prime-rates.html), with eyes firmly on the European banking situation. CET to suspend trading in its shares. [UBS](https://www.cnbc.com/quotes/) [takeover](https://www.cnbc.com/2023/03/20/ubs-shares-tumble-after-emergency-rescue-of-rival-credit-suisse.html) of [Credit Suisse](/quotes/CSG.N-CH/). Credit Suisse has until the Swiss market open at 9:00 a.m. Following the emergency rescue, the combined bank will have $5 trillion of invested assets, according to UBS. [UBS](/quotes/UBS/) finalized an [agreement](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) to buy its rival [Credit Suisse](/quotes/CS/) for $3.2 billion.

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.

François Villeroy de Galhau said French banks 'a strong grip on risk' © Bloomberg. France's central bank governor has insisted the health of the French ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

Banking stocks and bonds plummeted on Monday after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse Group AG, a deal that was ...

In a separate memo, the bank said as part of the takeover if job cuts proved necessary it would be communicated to staff as per guidelines. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” in restoring calm. Problems remain in the U.S. In particular, investor focus has shifted to the massive hit some Credit Suisse bondholders would take under the UBS acquisition, which has added to anxiety about other key risks including contagion, the fragile state of U.S. “I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders,” Kelleher said. Credit Suisse shares slumped 62 percent in premarket trade to a new low while UBS lost 7.1 percent. “I know that there must be still questions that we have not been able to answer,” he said. The MSCI index for financial stocks in Asia ex-Japan was down 1.3 percent. Quite the contrary, it has gone global,” said Mike O’Rourke, chief market strategist, Jones Trading. And Credit Suisse urged its staff to go to work, according to a memo to staff seen by Reuters. In a package engineered by Swiss regulators on Sunday, UBS Group AG will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG and assume up to $5.4 billion in losses. Banking stocks and bonds plummeted on Monday after UBS Group sealed a state-backed takeover of troubled peer Credit Suisse Group AG, a deal that was orchestrated in an attempt to restore confidence in a battered sector.

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 ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

Despite bold proclamations from Swiss authorities and central banks about a return to stability, the deal does not appear to have laid to rest concerns ...

"But in our view, it has become harder to assess the attractiveness of the current historically large spread pick-up provided by AT1 bonds vs. This could set in train renewed jitters about the health of banks." "This solves what I think is probably an idiosyncratic problem at Credit Suisse, but I'm not sure it's a firebreak big enough to stop the rot for the market," he said Monday. James Sym, head of equities at London-based investment manager River and Mercantile, told CNBC that the market was in "seek and destroy mode." "They are designed to impose permanent losses on bondholders or be converted into equity if a bank's capital ratios fall below a predetermined level, effectively propping up its balance sheet and allowing it to stay in business. The deal also includes support from the Swiss government, financial regulator FINMA, and the Swiss National Bank (SNB), which will offer a liquidity line of up to 100 billion Swiss francs, backed by a federal default guarantee. But as we discussed on Friday, we take comfort from the limited contagion from U.S. "Of course, we are mindful that the situation among U.S. The government will offer a loss guarantee of up to 9 billion Swiss francs, with UBS assuming the first 5 billion of potential losses. The U.S. hit us at the most unfavorable moment." bank has shifted back to an overweight allocation on European banks as a result.

Falling prices in Asia and Europe drag down FTSE by 1.5% as UBS plunges 12%

“Focus is shifting to the implications of high-risk bond holders in banks, after holders of more risky Credit Suisse debt saw their investment wiped out. “In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier One [AT1] be required to be written down. Bank of East Asia fell 3.5%. [HSBC](https://www.theguardian.com/business/hsbcholdings) and Standard Chartered tumbled in the Asian stock market as details of UBS’s $3.2bn (£2.65bn) “emergency takeover” of Credit Suisse rattled global investors. [Banking](https://www.theguardian.com/business/banking) Authority and ECB Banking Supervision said they welcome the “comprehensive set of actions taken yesterday by the Swiss authorities”. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) deal hasn’t changed their position on the hierarchy of debt when a bank fails.

Swiss authorities brokering Credit Suisse's rescue merger with UBS have said 16 billion Swiss francs ($17 billion) of its Additional Tier 1 debt will be ...

“If you take 10% yield on something when the government security is 4%, then you’re earning a lot of extra yield for a reason. For BBB-rated European banks, the spread is up 50 bps in a month to 174. But he assumes he’s above equity,” Steven Major, global head of fixed income research at HSBC, said on the phone from Melbourne. A London-listed exchange-traded fund that tracks banks’ AT1 debt tumbled 15.7%. That shock rippled through Asian markets on Monday, March 20, causing bank credit default swaps to widen and stocks to fall. European bank shares and bonds slid as traders repriced the risk and cost of banks’ capital.

“In my eyes, this is against the law,” said Patrik Kauffman, a fund manager at Aquila Asset Management, who invests in additional tier 1 (AT1) bank debt.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

From Hong Kong to Australia and Singapore, authorities urged that their domestic banking systems were stable.

Overall, IDC's Daruwala said banks in the region have "very, very little" exposure to Credit Suisse. The exposures of the local banking sector to Credit Suisse are insignificant," it added. Credit Suisse customers will continue to have full access to their accounts and "contracts with counterparties remain in force. Swiss regulators played a key role in orchestrating the forced takeover, to stem a larger banking crisis that would threaten the global system. Credit Suisse's operations in the city comprise a branch supervised by the HKMA and two licensed corporations supervised by the Securities and Futures Commission. "Japan, I maintain has been relatively shielded, especially from Credit Suisse." The slew of headlines around the global banking turmoil have heightened volatility and investor fears of a broader crisis. "All of them will open for business today as usual. . . regulators backstopping SVB's uninsured deposits ](https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html)and offering new funding for troubled banks. "The total assets of Credit Suisse, Hong Kong Branch amounted to about HK$100 billion, representing less than 0.5% of the total assets of the Hong Kong banking sector. The deal was announced before markets opened Monday.

'It's an extremely sad day to see us ending our legacy this way,' says one Singapore-based senior employee in Credit Suisse's wealth management unit.

UBS and Credit Suisse sources said Southeast Asia was among the regions where the banks had the most overlap on the wealth management and investment banking teams. Credit Suisse is ranked 20th on the league tables for equity capital markets for the first quarter in Asia Pacific including Japan, according to data from Refinitiv, with a 1.1% market share. As a giant wall backdrop as high as the ceiling with “Credit Suisse AIC” emblazed on it glowed in a hotel lobby, the bank said its chairman and chief executive officer would not turn up at the event. UBS warned on Sunday that it would pare back much of Credit Suisse’s investment bank, which Credit Suisse had planned to spin off. Credit Suisse had been steadily losing wealth management market share to UBS and to more well-capitalized US banks in investment banking in the last few years, but remained the second biggest wealth manager in Asia, behind only its acquirer. [Credit Suisse](https://www.rappler.com/business/timeline-credit-suisse-bank-facts-history/) staff arriving to work in Asian financial centers on Monday morning, March 20, fretted about retrenchments and retaining business after larger Swiss rival UBS [agreed to swallow the 167-year-old bank](https://www.rappler.com/business/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland/) in a [state-backed rescue](https://www.rappler.com/business/ubs-agrees-buy-credit-suisse-assume-losses-march-2023/).

Credit Suisse's additional tier one bonds are set to be wiped out following the struggling bank's takeover by UBS.

AT1 bonds "rank ahead" of equity investments, the statement noted, adding that they [had followed this process in the unwinding of SVB UK.](https://www.cnbc.com/2023/03/13/hsbc-buys-silicon-valley-bank-uk-protecting-deposits-.html) [stating](https://www.bankofengland.co.uk/news/2023/march/boe-statement-uk-creditor-hierarchy) that the U.K. "In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier 1 be required to be written down. [losses and difficulties](https://www.cnbc.com/2023/03/17/credit-suisse-timeline-how-years-of-turbulence-came-to-a-head.html), Credit Suisse's struggles came to a head last week after its biggest investor, Saudi National Bank, said it could [not offer any more support to the Swiss bank financially](https://www.cnbc.com/2023/03/15/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html) due to regulatory restrictions. their HY [high-yield corporate counterparts]," Goldman explained, concluding that this will likely lead to a reduced appetite for AT1 bonds. "I don't think it's a risk that they will be written down. We still fear the market is very fragile. "AT1s are there to absorb losses, so it's not a surprise," she said. Usually, equity investments would be classed as secondary to AT1 bonds. Holders can convert them into equity or write them down in certain situations – for example when a bank's capital ratio falls below a previously agreed threshold. The Swiss regulator FINMA announced Sunday that the so-called additional tier-one bonds, which are widely regarded as relatively risky investments, will be written to zero as part of the deal. - The Swiss regulator FINMA announced Sunday that the so-called additional tier-one bonds, which are widely regarded as relatively risky investments, will be written to zero as part of the deal.

LONDON (AP) — Credit Suisse shares plunged Monday after Swiss authorities cut a deal with its bigger rival UBS to acquire the troubled bank at a marked-down ...

bank collapses and the danger to Credit Suisse was “an international banking crisis in the making.” “The banking system of Europe has not fully recovered from the crisis” in 2008, he said. [Silicon Valley Bank and Signature Bank](/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) in the U.S., including high interest rates. But concerns about risks to the deal, losses for some investors and Credit Suisse’s falling market value could renew However, Credit Suisse weathered the 2008 financial crisis without assistance, unlike UBS. banks](/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf). [Shares of Credit Suisse](/article/credit-suisse-banking-shares-plunge-switzerland-ba1861aa8b61170c00a2789287dc9a08), whose woes stem from questions over its internal controls, closed nearly 56% lower a day after UBS said it would buy its fellow Swiss bank for a lowball price of 3 billion Swiss francs ($3.25 billion). UBS is bigger but Credit Suisse wields considerable influence, with $1.4 trillion assets under management. Analysts say some previous forced bank mergers didn’t work out well for shareholders in the long run. failures have raised questions about other potentially weak global financial institutions, sweeping up the already beleaguered Swiss bank. 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 financial system](/article/banks-federal-reserve-silicon-valley-lending-rescue-a04875a164165b50e971ff4576bf4e27). The shares traded at about the level they are valued at in the deal.

Lawyers from Switzerland, the United States and UK are talking to a number of Credit Suisse Additional Tier 1 (AT1) bond holders about possible legal action ...

Quinn Emanuel did not name the bondholders. PIMCO had 3.49% of its 5.66 billion euro ($6.06 billion) GIS Capital Securities Fund in Credit Suisse AT1 bonds, the Morningstar data showed. In Switzerland, the bonds' terms state that in a restructuring, the financial watchdog is under no obligation to adhere to the traditional capital structure hierarchy, which is how Credit Suisse AT1 bondholders lost out. Register for free to Reuters and know the full story Quinn Emanuel said it was in discussions with Credit Suisse AT1 bondholders representing a "significant percentage" of the total notional value the instruments. [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) Additional Tier 1 (AT1) bond holders about possible legal action after the state-backed rescue of Credit Suisse by UBS [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) wiped out AT1 bonds, law firm Quinn Emanuel Urquhart & Sullivan said on Monday.

Swiss bank had SFr360mn of contingent capital awards outstanding at the end of 2022.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

The Swiss government has come under fire from bondholders and international regulators for its handling of the $3.2bn rescue-takeover of Credit Suisse by ...

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

US and European stock markets rose but bank shares wavered in volatile trading on Monday after financial authorities scrambled to ease fears of a crisis in ...

Shanghai - Composite: DOWN 0.5 percent at 3,234.91 (close) Brent North Sea crude: DOWN 1.3 percent at $72.02 per barrel Credit Suisse was already shaken by other scandals, including its exposure to the 2021 collapses of investment firms Archegos and Greensill. Tokyo - Nikkei 225: DOWN 1.4 percent at 26,945.67 (close) Hong Kong - Hang Seng Index: DOWN 2.7 percent at 19,000.71 (close) West Texas Intermediate: DOWN 1.6 percent at $65.88 per barrel Paris - CAC 40: UP 1.3 percent at 7,013.14 Euro/pound: DOWN at 87.40 pence from 87.59 pence Frankfurt - DAX: UP 1.1 percent at 14,933.38 EURO STOXX 50: UP 1.3 percent at 4,119.42 London - FTSE 100: UP 0.9 percent at 7,403.85 New York - Dow: UP 1.1 percent at 32,217.09 points

Bankers in London braced for hundreds of potential job losses and a hit to Britain's already-dented financial sector after the historic rescue of Credit ...

Outside Credit Suisse's offices on Monday there was little sign of the tumult. Those who were more loyal and didn't do so are now talking to headhunters," said Stephane Rambosson, co-founder of Vici Advisory which specialises in hiring senior investment bankers. [(HSBA.L)](https://www.reuters.com/companies/HSBA.L) separately [reviewing its commitment to a 45-floor tower](/business/finance/hsbc-review-location-global-hq-london-memo-2022-09-29/) elsewhere on the estate. Credit Suisse was one of the first major banks to be lured to the area by the prospect of cheaper office space in the early 1990s and houses the bulk of its UK staff in the One Cabot Square building in the western part of the estate. Register for free to Reuters and know the full story LONDON, March 20 (Reuters) - Bankers in London braced for hundreds of potential job losses and a hit to Britain's already-dented financial sector after the historic rescue of Credit Suisse

U.S. Treasury yields rose on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse.

[finalized the takeover of Credit Suisse by UBS](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), the two largest Swiss banks. [joint liquidity operation with several other central banks](https://www.cnbc.com/2023/03/19/fed-other-central-banks-set-joint-liquidity-operation.html) around the world. "Our expectation is that the FOMC will raise the policy rate by 25bps, not 50bps," said Thierry Wizman, global FX and rates strategist at Macquarie. The Fed's next meeting is due to begin Tuesday, with a fresh interest rate policy decision expected Wednesday. The [2-year Treasury](/quotes/US2Y/) yield was trading at around 3.96% after rebounding to trade 11 basis points higher. The ETF at one point rose 5% during Monday's trading session, but saw some of its gains reverse as First Republic shares slide 47%.

The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

For most people in Switzerland, the news that Credit Suisse was to be saved from collapse by local rival UBS was met with stunned disbelief.

For cost savings, you can change your plan at any time online in the “Settings & Account” section. Compare Standard and Premium Digital For a full comparison of Standard and Premium Digital,

Investors responded in kind. In Europe, UBS shares rose 1.02% (though Credit Suisse tanked 55.74%, making each share worth less than $1). Banking stocks in the ...

[managed to rebound](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). [First Republic Bank continued sinking](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). All [major indexes made minor gains](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html). Bondholders, unsurprisingly, [aren't happy about it](https://www.cnbc.com/2023/03/20/17-billion-of-credit-suisse-bonds-worthless-following-ubs-takeover.html). [UBS to buy Credit Suisse](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), with an aim [to increase confidence in the banking sector](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html). The banking crisis is causing regional banks — which account for around a third of all lending in the United States — to reduce their loans, said Eric Diton, president and managing director of The Wealth Alliance. This suggests markets are already so jittery that whatever the Fed does — even if it's nothing — it might cause instability to spread. New York Community Bancorp (which [agreed to buy Signature Bank](https://www.cnbc.com/2023/03/20/fdic-announces-agreement-to-sell-signature-bank-assets.html)over the weekend) surged 31.65%, PacWest Bancorp jumped 10.78% and KeyCorp edged up 1.21%. Some bank stocks are in the doldrums, yes, but the SPDR S&P Regional Banking ETF, a fund of regional bank stocks, rose 1.11% on Monday. To stem the rout, [JPMorgan Chase is advising First Republic](https://www.cnbc.com/2023/03/20/jpmorgan-advising-first-republic-on-strategic-alternatives-including-a-capital-raise-sources-say.html)on strategic alternatives such as raising capital or attempting a sale, sources told CNBC's David Faber. The Dow Jones Industrial Average gained 1.2%, the S&P 500 added 0.89% and the Nasdaq Composite increased 0.39%. Banking stocks in the [pan-European index, Stoxx 600](https://www.cnbc.com/2023/03/20/european-markets-live-updates-ubs-buys-credit-suisse-news-stocks.html), were up 1.3%, giving the index a 1% gain.

US and European stock markets rose, but bank shares wavered in volatile trading Monday, after financial authorities scrambled to ease fears of a crisis in ...

And so far, it hasn't." European Central Bank president Christine Lagarde added that capital buffers and liquidity of eurozone banks were "way in excess" of what is required while their exposure to Credit Suisse's AT1 bonds was "very limited." Investors pored over the Credit Suisse buyout, which sought to prevent a wider crisis as it is among 30 global banks considered "too big to fail". European indices and Wall Street rose in choppy trading as investors remain on edge, a week after US authorities stepped in to prevent bank runs following the collapse of several US regional lenders. He added, however, that the speedy and decisive reaction of authorities will provide "some reassurances amid all of the uncertainty." NEW YORK, United States — US and European stock markets rose, but bank shares wavered in volatile trading Monday, after financial authorities scrambled to ease fears of a crisis in the banking system.

Here are some of the crises Credit Suisse has faced in the last few years.

[has agreed to buy rival Credit Suisse](https://www.rappler.com/business/ubs-agrees-buy-credit-suisse-assume-losses-march-2023/) for 3 billion Swiss francs ($3.23 billion) in stock in a [shotgun merger](https://www.rappler.com/business/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland/) engineered by Swiss authorities. Switzerland’s financial regulator said Credit Suisse had misled it about the scale of the spying. [resigned](https://www.rappler.com/business/credit-suisse-chairman-antonio-horta-osorio-resignation/) in January 2022 after [flouting COVID-19 quarantine rules](https://www.rappler.com/business/antonio-horta-osorio-broken-promise-final-straw-credit-suisse/). [Archegos Capital Management](https://www.rappler.com/business/potential-global-bank-losses-archegos-downfall-march-29-2021/) defaulted in March 2021. [tap the Swiss central bank for up to $54 billion](https://www.rappler.com/business/credit-suisse-lifeline-gives-global-banks-tentative-respite-march-16-2023/) to shore up liquidity and investor confidence, after its shares hit record lows after a [bank collapse](https://www.rappler.com/business/svb-financial-group-silicon-valley-bank-collapse-march-2023/) in the United States [triggered fears of bank runs](https://www.rappler.com/business/silicon-valley-bank-sows-global-fear-about-rising-cost-money/) around the world. [brought in to clean up the bank’s corporate culture](https://www.rappler.com/business/credit-suisse-crisis-worst-yet-banking-veteran-antonio-horta-osorio/) marred by its involvement with collapsed investment firm Archegos and insolvent supply-chain finance firm Greensill Capital. [leak of data on thousands of customer accounts](https://www.rappler.com/business/simple-google-search-should-have-alerted-credit-suisse-criminal-clients/) in previous decades. [Credit Suisse](https://www.rappler.com/business/timeline-credit-suisse-bank-facts-history/) had embarked on an overhaul to recover from [scandals, losses, and lawsuits](https://www.rappler.com/business/spies-lies-regulators-round-on-credit-suisse/), but its [shares slumped](https://www.rappler.com/business/credit-suisse-future-balance-shares-fall-march-17-2023/) last week on fears of contagion from a [banking crisis in the United States](https://www.rappler.com/business/united-states-joe-biden-says-banking-crisis-calmed-down-march-17-2023/). [led a sell-off in bank shares in Europe](https://www.rappler.com/business/how-credit-suisse-bank-drama-unfolded-march-2023/) after its largest investor Saudi National Bank said it could not provide more financial assistance because of regulatory constraints. [thrown an emergency lifeline](https://www.rappler.com/business/switzerland-central-bank-throws-financial-lifeline-credit-suisse-shares-pummeled-march-15-2023/) since the 2008 financial crisis. [crises](https://www.rappler.com/business/explainer-credit-suisse-bank-reaching-crisis-point-march-2023/) the bank has faced in the last few years (in reverse chronological order): [racing to rescue Credit Suisse](https://www.rappler.com/business/ubs-seeks-switzerland-government-guarantees-credit-suisse-takeover-march-18-2023/), among the world’s largest wealth managers, with UBS eventually agreeing to buy its rival for 3 billion Swiss francs and assume up to 5 billion francs in losses.

Credit Suisse's “CoCo” bonds did exactly what they were designed to do: Transfer all the risk of debt from the bank to bondholders.