Tuesday, March 21, 2023
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UBS Negotiating To Buy Part Or All Of Credit Suisse Crisis

The Swiss National Bank and the Swiss Financial Supervisory Authority will coordinate negotiations to boost market confidence in the Swiss banking sector.

Swiss regulators have told the Federal Reserve and the Bank of England that merging the two banks is their “Plan A”. But they said other options could continue to be considered.

According to previous news, Credit Suisse said it would borrow 50 billion Swiss francs (about 54 billion US dollars) from the Swiss National Bank. However, this has failed to stem the plunge in its share price, which has fallen to a record low after its biggest investor ruled out providing more capital, and its chairman acknowledges that an exodus of wealth management clients continues.

Credit Suisse shares continued to fall. Credit Suisse Shares closed nearly 7% on Friday but are down 24% weekly.

Credit Suisse started its slump earlier this week when it was revealed that its biggest backer, the National Bank of Saudi Arabia, could not provide additional financial support.

ChunkyCoins gif crypto image for UBS Negotiating To Buy Part Or All Of Credit Suisse Crisis

According to the FT, in 2022, UBS generated $7.6 billion in profits, while Credit Suisse lost $7.9 billion, wiping out all of the previous decade’s earnings.

Last October, TRON Founder Justin Sun also expressed interest in buying assets or shares of the struggling Credit Suisse, which is on the verge of bankruptcy, and putting it on Web3. At that time, the bank’s 5-year bad debt swap (CDS) contract fee increased to 250 basis points (2.5%).

The global banking sector is under increasing pressure following the failure of Silicon Valley Bank last week. Since that event, the crypto-focused Signature Bank has also been shut down by regional regulators, and banking stocks have lost millions of dollars in market capitalization.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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