UBS

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.

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.

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.

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.

Swiss bank Credit Suisse was purchased by a rival Swiss bank UBS today for roughly $3 billion in an emergency deal that likely saved Credit Suisse from ...

In fact, in a press conference this afternoon, the Swiss president said that this deal was vital to the stability of the global banking system. VANEK SMITH: The Swiss government stepped in and helped to broker this deal where UBS, another Swiss bank, is buying Credit Suisse for about $3 billion. He said this kind of thing, the failure of a bank like Credit Suisse, is exactly the kind of thing that could spark a full-on banking crisis. I think that is the question on everybody's mind. And just over the last decade and a half, it's just made continual bad strategic decisions. It's had a bunch of scandals and fines and reputational damage, that kind of thing. And it was basically on the brink of failure this weekend. And he said the failure of Silicon Valley Bank had investors and depositors feeling pretty panicky. And so in this environment, with this crisis of confidence, people just started yanking billions of dollars out of Credit Suisse. It is considered one of the most important banks in the world. Here to talk more about the deal and what it means is NPR's Stacey Vanek Smith. The emergency deal today cost about $3 billion, and it likely saved Credit Suisse from going bust.

UBS can handle the risks from taking over Swiss rival bank Credit Suisse , UBS Chief Executive Ralph Hamers told broadcaster SRF.

"The takeover means that we are bringing back stability and security for CS clients," Hamers said. "There are certainly opportunities and chances for growth. In doing so, we are not taking so much risk." So we have contained the risks in the markets," Hamers said in the interview broadcast early on Monday. Register for free to Reuters and know the full story We call this a capital-light investment bank.

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.

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.

Years of mismanagement and fears of a widening banking crisis felled the 167-year-old European investment giant.

Over the last few days, it has suffered [mass outflows](https://www.reuters.com/business/finance/credit-suisse-managed-funds-net-outflows-top-450-mln-morningstar-2023-03-17/)as problems mounted and bank sector concerns festered, pushing its stock to record lows. But the industry there as a whole doesn’t have a worryingly high uninsured deposit ratio or unrealized losses on 'held-to-maturity' securities in excess of capital." The Swiss National Bank will open a monetary tap for Credit Suisse for "substantial additional liquidity," the bank said. The merger is the latest attempt to arrest market volatility triggered by concerns about a worldwide banking panic. [Silicon Valley Bank's failure](https://www.axios.com/2023/03/14/biden-svb-stop-bank-runs). [financial institutions caught](https://www.axios.com/2023/03/16/first-republic-rescue-markets) in the crosshairs.