The Swiss National Bank (SNB) and Switzerland’s financial regulator reportedly believe that a takeover of investment bank Credit Suisse by Switzerland’s largest bank UBS is the “only option” to prevent a “decline in confidence” in Credit Suisse. Is.
March 18 according to the Financial Times reports Switzerland is preparing to use “emergency measures” to accelerate UBS’ takeover of Credit Suisse, citing three people familiar with the situation, in an effort to finalize the acquisition before “the market opens on Monday”. In.
It was noted that the emergency measures would allow the deal to proceed without a shareholder vote, bypassing normal Swiss rules requiring a “six-week” consultation period for shareholders to “consult on an acquisition”. “
snb and swiss financial market supervisory authority (FINMA) are reportedly working to “reach regulatory agreement” by Saturday night, reportedly telling international counterparts that “they are working on a deal” with UBS to prevent a “decline in confidence” in Credit Suisse. “is considered the only option.
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It was noted that UBS intends to move forward with Credit Suisse’s plan to reduce its investment bank, with two people “briefed on the situation,” stating that “the combined entity will form the merged group”. shall not exceed one-third of the
UBS reportedly has “$1.1tn (trillion)” of total assets on its balance sheet, while Credit Suisse has “$575bn (billion)” – a successful merger between the two Swiss banks reportedly creating the “biggest global will make it one of the systemically important financial institutions in Europe.”
This comes after American investment firm BlackRock said in a March 18 tweet that it had “no interest” in acquiring Credit Suisse.
BlackRock is not participating in any plan to acquire all or any portion of Credit Suisse, and has no interest in doing so.
— BlackRock (@BlackRock) March 18, 2023
First, SNB and FINMA issued a joint statement saying on 15 March that Credit Suisse met “capital and liquidity requirements” on systemically important banks.
The statement noted that, if necessary, the SNB would provide Credit Suisse “with liquidity”, acknowledging that credit suisse was “Influenced by market reactions in recent days.”