Credit Suisse
UBS Group AG is in talks to take over all or part of Credit Suisse, the Financial Times reported on Friday, after an emergency bailout failed to restore investor confidence in the smaller Swiss bank.
The committee of the two Swiss lenders is expected to meet at the weekend to negotiate a deal, the FT said, citing multiple people briefed on the talks. Sources with knowledge of the matter said Swiss regulators are encouraging UBS and Credit Suisse
merged, but the two banks did not want to do it. Regulators have no authority to enforce the merger, the person said. Shares of Credit Suisse jumped 9% in after-market trading following the FT report. Credit Suisse and UBS declined to comment on the report. Credit Suisse, a 167-year-old bank, was the biggest hit in the market turmoil caused by the collapse of US lenders.
Silicon Valley Bank and Signature Bank in the past week, forcing it to tap $54 billion in central bank funding.
Credit Suisse executives are due to hold a meeting at the weekend to outline a path for the troubled Swiss bank, people familiar with the matter said earlier. In the latest sign of its mounting difficulties, at least four banks, including Societe Generale SA and Deutsche Bank AG, have been banned from dealing with the Swiss lender or its securities as 5source has specific knowledge about the matter.
Credit Suisse is unique,” said Frederique Carrier, head of investment strategy at RBC Wealth Management.
“The intervention of the Swiss central bank is necessary to stop the fire, but it may not be enough to restore confidence in Credit Suisse, so there is talk of other measures.
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The desperate attempt to boost Suisse’s credit comes as policymakers including the European Central Bank and US President Joe Biden seek to reassure investors and investors about the safety of world banking system. But fears of wider unrest in the sector remain. Already this week, the largest US banks have used a lifeline of $ 30 billion for the first small lender Republic, while the US banks in total have asked for a record $ 153 billion in emergency funds from the Federal Reserve in the days not recently.
This is more than the previous record achieved during the worst financial crisis about 15 years ago. This reflects “the financial and financial crisis in the banks, due to the decrease in the confidence of the depositors,” said the rating agency Moody’s, which this week lowered its opinion on the banking system The US is not good.
In Washington, the focus is on greater oversight to ensure that banks — and their leaders — are held accountable. Biden – who promised earlier this week for Americans that their deposits are not safe – on Friday called on Congress to give regulators more powers in the banking industry, including by imposing higher fees, foreclosures and bans bankers failed, according to a White House statement.
The US Democratic congressional group has also called on the administration and the Justice Department to investigate Goldman Sachs’ role in the failure of SVB, US Representative Adam Schiff’s office said on Friday.
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