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.
Of course things look so fantastic with the Biden admin at the helm. We should all be earing beans by the end of the year.
This is why guillotines haven’t actually gone out of style. Obviously they are a necessity in a world of far too much individual wealth and entitlement.
Our world is dominoes- we have set it up straight and we thought solid yet it begins to tumble -
How much loss did UBS report? This is just turning out to be more mess than what meets the eye! CreditSuisse Credit_Suisse
'agreed' is the wrong frame here.
gtconway3d Boy, I bet their books will have a story to tell.
The Big Short 2 is currently unfolding before our eyes.
Gotta protect Washington's Swiss Bank accounts while little people lose their 401s. With this failed administration
I've heard via CNBC that Credit Suisse has been shaky for decades, so a takeover is not surprising here. Banking jitters = buying opportunity.
This is the modus operandi of the globalist fascists around the world. Stealing publicly traded pension funds; while the state, providence, or nation state’s worker’s pensions, are mixed with ESG-woke ‘stocks’ of ‘green energy’ programs, CRT media, and Big Pharma.
Have they considered putting it up on eBay? ¯\\_(ツ)_/¯
I mean, this is really shocking.
Maybe these banks should worry less about woke, far left Democrat politics - and more about solid banking practices.