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RESUMEN-UBS investigates acquisition of Credit Suisse to end disruption in banking industry: fuentes

Corporal John O’Donnell

MARCH 18 (Reuters) – UBS AG was exploring the possibility of buying troubled bank Credit Suisse on Monday, people familiar with the matter said.

Credit Suisse, 167, was the entity most affected by the stock market turmoil caused by the bankruptcies of US bank Silicon Valley Bank (SVB) and its signatories last week, and its collapse raised fears of banking problems. It was resurrected.

To control the crisis, UBS will restore authority to the authorities and deal with the Reuters threat. According to the plan, Credit Suisse’s Swiss business could be spun off, he added.

UBS and Swiss regulator FINMA declined to comment when contacted by Reuters.

Credit Suisse finance director Dixit Joshi and his team met over the weekend to assess options for the entity, a person familiar with the matter said.

Bank stocks have been volatile this week, during which time they were forced to raise $54 billion from central banks, with Credit Suisse losing a quarter of its market value on Friday night.

Long considered a symbol of stability for the bank, El Ambiente en Suiza was lost in thought while management debated the future of the country’s main lender. , the headlines and cover of the Saturday morning newspaper Neue Zuercher Zeitung.

Credit Suisse is one of the world’s leading asset managers and is considered one of the 30 global systemically important banks whose failure would cause waves throughout the financial system.

At least four of Credit Suisse’s main rivals, among them Societe Generale SA and Deutsche Bank AG, have direct knowledge of Asunto that they have imposed restrictions on their business with or the value of Swiss Bank5. A person told Reuters.

Goldman Sachs has cut its recommendations on European bank debt exposure and asserted that Credit Suisse’s uncertain future will put pressure on the sector, broadly and regionally.

The banking system was stronger than it was during the 2008 financial crisis, but “a stronger political response is likely to be needed to bring some stability,” Goldman analysts said. One Lotfi Karui writes in a note to customers.

Big U.S. banks offered $30 billion this week to bail out small lender First Republic, while U.S. entities recently requested a record $153 billion in emergency liquidity. Did.

According to rating agency Moody’s, which downgraded its outlook for the American banking system this week, this is due to “bank funding and liquidity strains, impulsadas po el de vira miento de la confianza de los” Depositantes”.

And in Washington, the mayor’s oversight ensures liability for all banks.

Persistence solves the problem

Los valores bancarios de todo el mundo are seen to be affected since SVB’s bankruptcy, raising questions about other weaknesses in the financial system.

In March 2020, it shook the market at 21.5%.

Aunque el apoyo de algunos de los principales nombres de la banca estadounidense impidió el desplome de First Republic esta semana, los inversores se vierondos por las revelaciones sobre su posición de tresorería y la amount de Liquidez de Emergency que necesitaba.

Meanwhile, the SVB’s collapse has highlighted the pressure on the banking sector from constant rate hike campaigns by other central banks, including the Fed and the European Central Bank.

Many analysts and regulators adamantly attribute SVB’s decline to its professional, technology-centric business model, but thanks to reforms adopted in the years following the global financial crisis, The banking system in general was much more solid.

(Report de las oficinas de Reuters; escrito por Lincoln Feast y Toby Chopra; editado en español por Carlos Serrano)

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