Credit Suisse, UBS deal talks: What you need to know

* Swiss authorities are also considering a full or partial nationalisation of Credit Suisse as the only other viable option outside a takeover by UBS, Bloomberg reported. * The Financial Times reported that the all-share takeover deal was set to be signed as early as Sunday.


Reuters | Updated: 19-03-2023 20:25 IST | Created: 19-03-2023 20:25 IST
Credit Suisse, UBS deal talks: What you need to know

UBS Group AG is in emergency talks to buy fellow Swiss banking giant Credit Suisse as authorities bid to stave off turmoil when global markets reopen on Monday, with reports saying UBS has offered to pay up to $1 billion. DEVELOPMENTS

* Swiss authorities are examining imposing losses on Credit Suisse bondholders as part of a rescue, two sources told Reuters on Sunday, while European regulators are apprehensive for fear it could hit investor confidence elsewhere. * Swiss authorities are also considering a full or partial nationalisation of Credit Suisse as the only other viable option outside a takeover by UBS, Bloomberg reported.

* The Financial Times reported that the all-share takeover deal was set to be signed as early as Sunday. * Citing people familiar with the matter, it said an offer was made at 0.25 Swiss francs ($0.27) per Credit Suisse share, well below Friday's closing price of 1.86 Swiss francs and all but wiping out the bank's existing shareholders.

* However, Bloomberg News, citing people with knowledge of the matter, said Credit Suisse was pushing back against the offer. * A takeover of Credit Suisse by UBS could see the Swiss government offer guarantees of up to $6 billion against the risks involved, two people with knowledge of the matter said previously.

* Credit Suisse's plan to spin off its investment bank under the First Boston brand is being thrown into doubt by the takeover talks, Bloomberg News reported on Sunday. * The Bank of England has indicated to international counterparts and to UBS that it would back a proposed takeover of Credit Suisse, Sky News reported.

* U.S. Senator Elizabeth Warren, who is pushing for tighter banking regulation, has called for an investigation into the failures of Silicon Valley Bank and Signature Bank, the Wall Street Journal reported on Sunday. * First Citizens BancShares is evaluating an offer for Silicon Valley Bank and at least one other suitor is seriously considering an offer, Bloomberg News reported on Saturday.

* The Mid-Size Bank Coalition of America has asked regulators to extend federal insurance to all deposits for two years, Bloomberg reported, citing a letter from the coalition. ANALYSIS

* Asset concerns weigh on U.S. regional bank deal talks. * As worries over banks swirl, investors seek protection against a market crash.

* Financial or price stability? Fed faces calls to pause. * Bank panic revives memories of 2008, may bring lasting change.

MARKETS * Wall St Week Ahead -Plunging bond yields boost stocks' allure ahead of Fed meeting

(Compiled by Reuters editors)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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