Credit Suisse, the battered Swiss banking giant, has agreed to a takeover by Switzerland’s largest bank, UBS — a move aimed at staving off immediate concerns of a disorderly bankruptcy and stemming panic about global financial turmoil.
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.
UBS is paying 3 billion Swiss francs, or $3.3 billion, for Credit Suisse in an all-stock deal, which is well under the bank’s market value of $8 billion as of Friday. The Swiss National Bank said it would lend up to 100 billion Swiss francs, or about $108 billion, to help facilitate the takeover.In addition, Swiss authorities are planning to speed up the process by circumventing laws that would require a shareholder vote, UBS executives said Sunday.
“The action today made sure that any dollar funding pressure [is] quashed to ensure payments clear,” Brusuelas said. “It’s preventive action to make sure the plumbing of the global financial architecture keeps flowing.”The moves over the weekend are expected to tee up another bumpy week. The Fed is set to convene Tuesday and Wednesday for its March policy meeting, where policymakers will craft a fresh set of economic projections.
Then, the collapse of Silicon Valley Bank this month set off widespread alarm in the banking system, which helped sink Credit Suisse’s stock price by 14 percent in one day.“Credit Suisse was already on shaky ground,” said John Sedunov, a finance professor at Villanova University.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
UBS seeks Swiss backstop in any Credit Suisse deal - Bloomberg NewsUBS Group AG is asking the Swiss government for a backstop if it were to buy Credit Suisse Group AG , Bloomberg News reported on Saturday.
Baca lebih lajut »
UBS mulls takeover of Credit Suisse with possible Swiss government guaranteesUBS is examining a takeover of Credit Suisse that could see the Swiss government offer a guarantee against the risks involved, said two people with knowledge of the matter on Saturday.
Baca lebih lajut »
Credit Suisse faces demise as UBS, Swiss regulators discuss takeoverFuture of 167-year-old Credit Suisse in question amid reports of a takeover by rival UBS as soon as Saturday evening as world economies scramble to prevent another global financial contagion
Baca lebih lajut »
UBS closing in on deal to buy fellow Swiss bank Credit SuisseSwiss bank UBS Group is closing in on a deal to take over its rival Credit Suisse amid a weekend of frenzied negotiations, according to multiple reports.
Baca lebih lajut »
Crunch time for Credit Suisse talks as UBS seeks Swiss assurances By Reuters*CRUNCH TIME FOR CREDIT SUISSE AS UBS AND SWISS REGULATORS RUSH TO SEAL TAKEOVER DEAL AS SOON AS SUNDAY: REPORTS
Baca lebih lajut »
UBS seeks Swiss backstop in any Credit Suisse deal - Bloomberg News By Reuters*UBS SEEKS SWISS BACKSTOP IN ANY CREDIT SUISSE DEAL $UBS $CS 🇨🇭🇨🇭
Baca lebih lajut »