Credit Suisse Bank: UBS is said to be in takeover talks with ailing rival

By Kathryn Armstrong
BBC News

March 19, 2023 at 01:46 GMT

Updated 6 minutes ago

Image source, Getty Images

picture description,

Credit Suisse has faced a number of scandals in recent years, including allegations of money laundering

Switzerland’s largest bank, UBS, is reportedly in advanced talks to buy all or part of its struggling competitor Credit Suisse.

Credit Suisse shares have fallen sharply in recent days after it said it identified “material weaknesses” in its financial reporting.

A $54bn (£44.5bn) lifeline from the Swiss National Bank has not solved the problem.

Regulators are trying to facilitate a deal before markets reopen on Monday.

There are concerns that Credit Suisse shares could fall further after falling 24% on Wednesday.

This triggered a general sell-off in European markets and fears of a broader financial crisis.

The Swiss government held an emergency meeting on Saturday night, but so far there has been no official statement on how negotiations are progressing.

Sources quoted by Reuters say UBS has asked the Swiss government to absorb around $6 billion (£4.9 billion) in costs if it were to buy Credit Suisse.

Any deal can also result in significant job losses.

The troubles coincided with the failure of two US lenders – Silicon Valley Bank and Signature Bank – raising concerns about the health of the banking system

Established in 1856, Credit Suisse has faced a number of scandals in recent years, including allegations of money laundering.

The company reported a loss of 7.3 billion Swiss francs ($7.9 billion; 6.5 billion pounds) in 2022 – its worst year since the 2008 financial crisis – and warned that it won’t be profitable until 2024 will be.

UBS, on the other hand, made a profit of $7.6 billion in 2022.

Credit Suisse is not only a domestic bank with 95 branches, but also has a global investment banking business and manages the wealth of wealthy clients.

It is one of 30 banks worldwide that are considered too big to fail due to their importance for the international banking system.

At the end of last year, Credit Suisse employed 50,480 people worldwide, 16,700 of them in Switzerland, although 9,000 jobs were to be cut, reports the Swiss broadcaster SRF.


(Visited 1 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *