A momentous but unhappy union: UBS saves Credit Suisse

, the two great rivals of Swiss banking, announced a momentous but unhappy union. After one weekend of haggling, and years of creeping despair, the merger valued Credit Suisse at around SFr3bn . A 167-year-old institution is dead. Global banking is in aThe value of the deal is a 60% discount on Credit Suisse’s stockmarket valuation, and a fraction of its SFr42bn book value.

But there are no accountants in a foxhole. A stunning loss of confidence ensued. By March 17th Credit Suisse’s share price had fallen to barely above its level just before thehad stepped in. Depositors were pulling their cash; counterparties feared the worst. Swiss officials returned with blunt force, pushing for a sale of the bank toplans to make billions of dollars of cuts, hoping that the transaction will have made it money by 2027.

Yet even here it is not all good news. Previous wealth-management mega-deals have seen clients flee. Some prefer to park their money with more than one institution—an approach which seems all the more sensible after the past fortnight.

But might yet bring down Switzerland? Hope springs eternal.

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UBS saves Credit Suisse, creating a vast new bankA 167-year-old institution is dead. Global banking is in a new, turbulent age oh what a pitty that it collapsed after lost its confidence when it became public that it was a dirty bank. chris_robb1 No it’s not it is not run by governments as it has been forever Saved ? More like forced with assurances
Source: TheEconomist - 🏆 6. / 92 Read more »

UK regulators back merger of banking giants Credit Suisse and UBSThe Bank of England has told its Swiss counterpart and the country's two biggest banks that it will not object to an emergency merger, Sky News understands. Of course they have .. they're trying to stave of a total collapse of the banking system. PEOWWWW $EURUSD ROCKET TIME, back on course for short term top test. All planned, all this shit. Exactly 👇
Source: SkyNews - 🏆 35. / 67 Read more »