Washington Post: Swiss banking giants combine to quell growing global bank crisis
Credit Suisse, the battered Swiss bank, has agreed to an emergency takeover by its rival UBS, Switzerland’s largest bank, a move engineered by the Swiss government to stave off immediate concerns of a global financial crisis.
The hasty deal, which was announced Sunday following a weekend of negotiations, offers a temporary reprieve after days of panic in global markets triggered by the collapse of Silicon Valley Bank.
But it does little to ease longer-term worries of instability in the banking system. A “swift and stabilizing solution was absolutely necessary,” Alain Berset, president of the Swiss Confederation, said during a Sunday afternoon news conference.
The UBS deal, he added, was “the best solution for restoring the confidence that has been lacking in financial markets recently.”
Read more ....
WNU Editor: These people are really pissed-off .... Credit Suisse says $17 billion debt worthless, angering bondholders (Reuters).
Sighhhh .... they say it is not a bailout, but it is a bailout.
UBS To Buy Credit Suisse To Quell The Growing Global Bank Crisis
UBS to acquire Credit Suisse -- UBS
UBS to buy Credit Suisse for nearly $3.25B to calm turmoil -- AP
UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system -- CNBC
UBS chairman on Credit Suisse deal: We hoped this day would not come -- Yahoo Finance
1 comment:
"It's going to make the AT1 bonds more expensive for all the other banks going forward, because now everyone else is going to see this extra risk," said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
AT1s pay higher interest as they carry more risk for investors than regular debt.
Working as intended.
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