Saturday, Mar 18, 2023 - 11:39 AM; "UBS Seeks $6 Billion Government Backstop As It Rushes To Finalize Credit Suisse Takeover Deal As Soon As Tonight": https://www.zerohedge.com/markets/ubs-seeks-government-backstop-it-rushes-finalize-credit-suisse-takeover-deal-soon-tonight
As we reported yesterday [3-17-23], the bank run spike late last week, and FT sources said deposit outflows from the bank topped Sfr10bn ($10.8bn) a day late last week as fears for its health mounted. [HOLY SHIT]
Meanwhile, with UBS facing pressure from the Swiss authorities to carry out a takeover of its local rival as soon as possible to get the crisis under control, the FT reported that Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.
This lack of enthusiasm by UBS to acquire its struggling rival of course forced the Swiss National Bank to front CS a CHF50 billion credit line to hold it over for the next four days amid a furious bank run, one which we said would be woefully insufficient to restore confidence in the collapsing lender, and which we probably used up in just a few hours.
The backroom negotiations are taking place as the largest Swiss bank is exploring an urgent acquisition of all or parts of its smaller rival at the urging of regulators to halt a crisis of confidence, one which local authorities hope will be concluded on Saturday
Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, which has become the laughing stock on Wall Street after being one of the most iconic groups less than two decades ago. Talks are also still ongoing on the fate of Credit Suisse’s profitable Swiss universal bank.
Saturday, Mar 18, 2023 - 11:39 AM; "UBS Seeks $6 Billion Government Backstop As It Rushes To Finalize Credit Suisse Takeover Deal As Soon As Tonight": https://www.zerohedge.com/markets/ubs-seeks-government-backstop-it-rushes-finalize-credit-suisse-takeover-deal-soon-tonight
As we reported yesterday, the bank run spike late last week, and FT sources said deposit outflows from the bank topped Sfr10bn ($10.8bn) a day late last week as fears for its health mounted.
Meanwhile, with UBS facing pressure from the Swiss authorities to carry out a takeover of its local rival as soon as possible to get the crisis under control, the FT reported that Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.
This lack of enthusiasm by UBS to acquire its struggling rival of course forced the Swiss National Bank to front CS a CHF50 billion credit line to hold it over for the next four days amid a furious bank run, one which we said would be woefully insufficient to restore confidence in the collapsing lender, and which we probably used up in just a few hours.
The backroom negotiations are taking place as the largest Swiss bank is exploring an urgent acquisition of all or parts of its smaller rival at the urging of regulators to halt a crisis of confidence, one which local authorities hope will be concluded on Saturday
Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, which has become the laughing stock on Wall Street after being one of the most iconic groups less than two decades ago. Talks are also still ongoing on the fate of Credit Suisse’s profitable Swiss universal bank.
Saturday, Mar 18, 2023 - 11:39 AM; "UBS Seeks $6 Billion Government Backstop As It Rushes To Finalize Credit Suisse Takeover Deal As Soon As Tonight": https://www.zerohedge.com/markets/ubs-seeks-government-backstop-it-rushes-finalize-credit-suisse-takeover-deal-soon-tonight
Meanwhile, with UBS facing pressure from the Swiss authorities to carry out a takeover of its local rival as soon as possible to get the crisis under control, the FT reported that Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.
This lack of enthusiasm by UBS to acquire its struggling rival of course forced the Swiss National Bank to front CS a CHF50 billion credit line to hold it over for the next four days amid a furious bank run, one which we said would be woefully insufficient to restore confidence in the collapsing lender, and which we probably used up in just a few hours.
The backroom negotiations are taking place as the largest Swiss bank is exploring an urgent acquisition of all or parts of its smaller rival at the urging of regulators to halt a crisis of confidence, one which local authorities hope will be concluded on Saturday
Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, which has become the laughing stock on Wall Street after being one of the most iconic groups less than two decades ago. Talks are also still ongoing on the fate of Credit Suisse’s profitable Swiss universal bank.