Credit Suisse

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 will buy rival Credit Suisse for more than $2 billion in a deal brokered by Swiss officials to try and prevent a banking crisis.

In the last two years alone, the bank's stock has fallen by more than 80%. Panicked investors and jittery depositors pulled billions out of the long-troubled Credit Suisse in recent days, leading to worries the bank could become insolvent if emergency measures were not taken. Under the deal, UBS Group AG will buy Credit Suisse for more than $3 billion in an all stock deal.

UBS agreed to buy its embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion) Sunday, with Swiss regulators playing a key part in the deal ...

The losses came despite a new loan of up to 50 billion Swiss francs ($54 billion) granted from the Swiss central bank last week, in an effort to halt the slide and restore confidence in the bank. “The capital and liquidity positions of the U.S. Credit Suisse Chairman Axel Lehmann said in the press conference that the financial instability brought about by the collapsed U.S. reeled from the collapse of Silicon Valley Bank and Signature Bank. The Swiss government also granted a guarantee to assume losses up to 9 billion Swiss francs from certain assets over a preset threshold “in order to reduce any risks for UBS,” said a separate government statement. UBS initially offered to buy Credit Suisse for around $1 billion Sunday, according to multiple media reports. Bringing the two rivals together was not without its struggles, but pressure to stave off a systemic crisis won out in the end. It is also far more globally interconnected, with multiple international subsidiaries — making an orderly management of Credit Suisse’s situation even more important. banking system are strong, and the U.S. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure,” said UBS Chairman Colm Kelleher in a statement. “This is absolutely essential to the financial structure of Switzerland and ... “We are committed to making this deal a great success.

An uncontrolled collapse of Credit Suisse would lead to "incalculable consequences for the country," said Swiss president Alain Berset.

That fanned fears that Credit Suisse would be the next domino to fall. As a result, their downfall does not necessarily signal the start of a financial crisis similar to what occurred in 2008. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system." The stock has seen a long downward slide: It traded at more than 80 francs in 2007. 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. banks last week that spurred a frantic, broad response from the U.S.

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.

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.

Officials announced the takeover on Sunday, after shares of Credit Suisse plummeted last week despite a $54 billion loan from the Swiss National Bank.

That upheaval caused an automatic freeze in trading of shares of Credit Suisse on the Swiss market and significantly impacted shares of other large European banks, with some share prices falling by double-digits. banks' failures gave rise to fear and a lack of confidence among big investors, and it announced its plans to borrow up to 50 billion francs from the national bank on Thursday. On Friday, Credit Suisse's share price slipped 7% and ended the day at $2.01. [in the wake of Silicon Valley Bank and Signature Bank's failures](https://www.cbsnews.com/news/silicon-valley-bank-deposits-guaranteed-signature-bank-federal-reserve-fdic/), which happened less than two weeks ago ago and within days of each other. Keller-Sutter said the purchase "laid the foundations for greater stability both in Switzerland and internationally." All of the bank's current shareholders will receive one share of UBS for around 22 1/2 shares of Credit Suisse, according to the release. banks to shore up finances at institutions that became threatened in the turmoil. The banking giant UBS has agreed to purchase Credit Suisse, a smaller rival, Swiss authorities announced on Sunday. Bank each agreed to give $1 billion. banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, agreed to provide $30 billion in funding for First Republic Bank. Those four banks each agreed to contribute $5 billion, while Goldman Sachs and Morgan Stanley each agreed to give $2.5 billion and BNY Mellon, PNC Bank, State Street, Truist and U.S. "This takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank," the Swiss National Bank said in a

Among the funds to bet on the rescue deal were two that specialize in buying the bonds of companies on the brink of bankruptcy.

Stock investors are at the bottom of that repayment list and usually lose all their money ahead of other investors. Because of the risks involved, the banks quoted prices to buy and sell that were unusually far apart, protecting them from sharp changes in prices. On Sunday, the Swiss Financial Market Supervisory Authority, or Finma, approved a deal for UBS to take over its smaller rival. This is a special type of debt issued by banks that can be converted to equity capital should they run into trouble. The first is in Credit Suisse’s ordinary bonds: debt that the bank borrowed at a fixed rate of interest to be paid back over a specified period of time. Traders said that on Sunday some bonds had already risen sharply following the deal, now that the immediate threat of Credit Suisse reneging on its debts has passed.

They're called contingent convertible bonds, or CoCos — and are often described as high-yield investments with a hand grenade attached.

Prices on Credit Suisse’s CoCos had flip-flopped in the hours leading up to the announcement of a deal with UBS as traders weighed two contrasting scenarios: either the regulator would nationalize part or the whole bank, possibly writing off Credit Suisse’s AT1 bonds entirely, or a UBS buyout with potentially no losses for bondholders. Given that all of Credit Suisse’s outstanding CoCos are writedown ones rather than the type that can be converted in to equity, the risk of losses was always there. In the end, it ended up being a bit of both, after the government stepped in to facilitate the merger. Yields on Credit Suisse’s CoCos had surged to distressed levels in recent days. And that’s a big problem for a market that would expect holders to be paid before shareholders. However, under the terms of the government-brokered deal, Credit Suisse shareholders are set to receive 3 billion francs. In simple terms, banks need to meet a minimum requirement for the amount of their own funds and eligible liabilities, more commonly known as MREL, to support an effective resolution in the event of a collapse. Because of the extraordinary government support, it will trigger a “complete write-down” of the bank’s AT1 bonds in order to increase core capital, Swiss financial regulator FINMA said in a statement on its website. They make up part of a buffer of debt and equity that’s intended to prevent taxpayers from having to shoulder the bill for a bank’s collapse. Its biggest CoCos were denominated in US dollars — it had a $2b perpetual note that could have been called in July and a $2.25b note with a first call in December. The Swiss lender’s holding company had 13 CoCos outstanding worth a combined $17.3 billion, issued in Swiss francs, US dollars and Singapore dollars, according to data compiled by Bloomberg. The vaporizing of Credit Suisse’s CoCo debt will strengthen the balance sheet of the newly combined bank — but could spell disaster for the wider CoCo market.

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.

As the government-preferred buyer, UBS had a strong hand and drove a very hard deal.

Despite the risks, UBS is getting a bank that was not finally bought down by bad assets but by a wave of liquidity fears rolling around the world. The faster UBS looks to sell assets out of Credit Suisse’s investment bank, the greater the losses it would have to take. Previously, he was a reporter for the Wall Street Journal and the Financial Times. The cost to Credit Suisse stock and junior bondholders and to the Swiss government covers a lot of potential asset losses. But the bigger dangers of letting Credit Suisse suffer an accelerating run were clear: This takeover ought to contain the chaos. However, UBS might also view a lot of the capital Credit Suisse carries for operational risks as being attached to its investment bank. UBS is protected by having wiped out most of Credit Suisse’s equity and all its junior bonds, along with the government guarantee. Acquiring the domestic Swiss bank will significantly increase the market share of the combined group and it could lose clients there too. Based on accounts from the end of 2022, the deal increases UBS’s total assets by 52% to about 1.6 trillion francs ($1.7 trillion), but it increases risk-weighted assets by 78% to 570 billion francs. UBS didn’t want the management distraction or the risks and responsibilities that come from such a massive takeover. UBS Group AG is the reluctant rescuer even at a bargain price of roughly $3.25 billion, paid in UBS shares. Credit Suisse Group AG could not afford to go into the opening of Asian markets with its own national authorities having questioned its viability.

UBS Group emerged as Switzerland's one and only global bank with a state-backed rescue of its smaller peer Credit Suisse, a risky bet that makes the Swiss ...

UBS also gets to keep the jewel in Credit Suisse’s crown, the domestic bank. Credit Suisse had a market value of about $8 billion at the close on Friday. 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 of it, it could make sense for them to keep it, there are lots of synergies." It will change the landscape of banking in Switzerland, where branches of Credit Suisse and UBS are dotted everywhere, sometimes just metres apart. UBS is also taking out a big competitor in securities trading. UBS earned $7.6 billion in profit in 2022, while Credit Suisse lost $7.9 billion. The failure of two U.S. 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. Following the 2008 financial crash, politicians pledged to never bail out banks again. "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.

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.

The former European banking flagship will be bought for the modest sum of $3 billion by its eternal rival and compatriot UBS.

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.

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.

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.

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 AG is asking the Swiss government to cover about $6 billion in costs if it were to buy rival Credit Suisse, a person with knowledge of the talks said, ...

* * U.S. * Bank panic raises * Berkshire Hathaway Inc's * A takeover of Credit Suisse

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 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.

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.

GENEVA (AP) — Shares of Credit Suisse plunged 60.5% in early trading Monday after the announcement that banking giant UBS would buy its troubled rival for ...

government](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) to prevent further panic. banks](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) last week that spurred [a frantic, broad](https://apnews.com/article/silicon-valley-bank-failure-deposits-fdic-8011ea377d8f9941032790ce1d704c5a) response from [the U.S. She reiterated that the European banking sector is resilient, with strong financial reserves and plenty of ready cash. “Today is one of the most significant days in European banking since 2008, with far-reaching repercussions for the industry,” said Max Georgiou, an analyst at Third Bridge. [50 billion francs](https://apnews.com/article/credit-suisse-banks-svb-shares-ecb-lagarde-94585aebadbf67f9a2307d3560ce502c) ($54 billion) failed to reassure investors and the bank’s customers. As part of the deal, approximately 16 billion francs ($17.3 billion) in Credit Suisse bonds will be wiped out. He said the combined group would create a wealth manager with over $5 trillion in total invested assets. announced late Sunday that New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a [$2.7 billion deal](https://apnews.com/article/signature-fdic-failure-new-york-community-bank-3c820646cc6574439fa158095594505e). [Markets remained jittery](https://apnews.com/article/stocks-shares-markets-economy-suisse-ubs-036b8fe51eb1f275f1e743a49115b493) Monday despite the best efforts of regulators to restore calm. Shares of Credit Suisse and other banks plunged last week after [the failure of two banks in the U.S.](https://apnews.com/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) raised questions about other potentially weak global financial institutions. The bank did weather the 2008 financial crisis without assistance, unlike UBS. Market benchmarks in Frankfurt and Paris opened down more than 1%, with European banking stocks dropping more than 2%.

Stocks were volatile but moderating to start a new week as sentiment over the health of banks was shaken after Credit Suisse was taken over in a rescue deal ...

tech lenders, and a loss of confidence in Credit Suisse after a major shareholder ruled out putting in more capital, we could well find that we’re at or close to a rate hike peak,” said Michael Hewson, an analyst at broker CMC Markets. While the demise of Credit Suisse looks more linked to confidence over management than portfolio losses—an unintended consequence of higher interest rates that took down Silicon Valley Bank—investors remain focused on monetary policy implications.\n\nThe Fed’s policy-setting committee heads into its next meeting on March 21-22, and traders have moved to rapidly price in a more accommodative stance from the central bank amid the bank panic. Futures tracking all three indexes were previously firmly in the red.\n\nOverseas, London’s FTSE 100 shed 0.1%, after previously trading down more than 1%, while Tokyo’s Nikkei 225 finished 1.4% lower.\n\nA crisis of confidence across the banking sector—which has punctuated investor sentiment since the collapse of Silicon Valley Bank on March 10—took a major global turn over the weekend with the emergency acquisition of Credit Suisse (ticker: CS) by rival UBS (UBS).\n\n“Credit Suisse was on life support and Swiss authorities believed only a full transplant of the bank’s divisions into UBS would restore stability to the banking system,” said Susannah Streeter, an analyst at broker Hargreaves Lansdown.

Credit Suisse's largest shareholder confirmed to CNBC that it had suffered a loss of around 80% on its investment.

1.7% of SNB's investments portfolio," the Saudi National Bank said in a statement. Saudi National Bank chairman Ammar Al Khudiary on Wednesday was asked by Bloomberg if it would increase its stake in the troubled Swiss lender. The messy fallout, which spilled over across the entire banking sector, has ruptured market confidence and stoked fears of another global banking crisis. Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Shares of the lender were up 0.58% on Monday at 9:30 a.m. His comments ultimately failed to stem the bank's continued rout. - Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Norway's sovereign wealth fund, Norges Bank Investment Management, is also a major shareholder. Shares of the lender were up 0.58% on Monday at 9:20 a.m. QIA did not reply to a request for further details. The significant discount comes as regulators try to shore up the global banking system. Shares of UBS, Switzerland's largest bank, traded down 10.5% at 9:28 a.m.

Oil prices and global shares fell after UBS unveiled plans to buy its struggling Swiss rival Credit Suisse for $3.2 billion over the weekend.

[plans to buy](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) its beleaguered Swiss rival Credit Suisse on Sunday. Asian markets also responded negatively to the news of UBS’ acquisition. In premarket trading early Monday morning, Wells Fargo and JPMorgan Chase were down more than 1% and Goldman Sachs, Citigroup and Bank of America between 0.4% and 0.6%. Credit Suisse bondholders are likely to be angry following the deal, as their investments are likely to be From market close on Friday, all were down between 3% and 4% on Monday morning. Its position grew terminal last week after its delayed annual report acknowledged “material weaknesses” in financial reporting and sent [shares](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) into freefall. [UBS Buying Rival Credit Suisse In $3.2 Billion Rescue Deal](https://www.forbes.com/sites/marisadellatto/2023/03/19/ubs-agrees-to-buy-embattled-bank-credit-suisse-central-bank-says/?sh=670032563e66) (Forbes) [What's Happening With Credit Suisse, Explained: Embattled Bank Rattles Stock Market As Banking Crisis Deepens](https://www.forbes.com/sites/ariannajohnson/2023/03/16/whats-happening-with-credit-suisse-explained-embattled-bank-rattles-stock-market-as-banking-crisis-deepens/?sh=2560db1135a2) (Forbes) Credit Suisse’s downfall comes at a poor time for global financial markets, which are already reeling from the recent failure of two U.S. The $3.2 billion deal, partly an effort to calm roiling financial markets, is a huge discount given Credit Suisse’s market valuation and heralds the creation of a new Swiss banking behemoth and the start of a new [era](https://www.reuters.com/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) for lending in Switzerland. [wiped out](https://www.ft.com/content/d1ae9a54-c4a7-4742-8b2d-afff549f4f95), a move that could exacerbate market worries. Years of unrest following a string of controversies—including [charges](https://www.theguardian.com/news/2022/feb/21/tax-timeline-credit-suisse-scandals) of money laundering, sanctions breaches, corruption, fraud and tax evasion, [links](https://www.forbes.com/sites/isabeltogoh/2021/11/04/credit-suisse-burned-by-archegos-and-greensill-scandals-shifts-focus-to-wealth-management-in-overhaul/?sh=2016c9052488) with collapsed firms Archegos and Greensill Capital and [revelations](https://www.theguardian.com/news/2022/feb/20/credit-suisse-secrets-leak-unmasks-criminals-fraudsters-corrupt-politicians) it had [spied](https://www.forbes.com/sites/isabeltogoh/2019/10/01/credit-suisse-executive-resigns-over-spy-scandal-that-has-rocked-switzerlands-banks/?sh=63fb620c137e) on its own staff—eroded that position. [streak](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=5130b9e52b04) that saw shares hit an all-time low last week.