The future of Credit Suisse’s flagship bank remains uncertain

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Zurich

The future of troubled Swiss bank Credit Suisse remains uncertain. The government met at the crisis meeting on Saturday evening, without commenting specifically on any decisions after that.

In the room is the full or partial takeover of the second largest Swiss bank by the largest Swiss bank, UBS. A spokeswoman for Credit Suisse and a spokesperson for UBS said Sunday that there was no further comment from them.

According to media reports, Swiss supervisory authorities are urging UBS to take over its smaller local rival. State guarantees are a prerequisite for a deal that will be negotiated frantically over the weekend. She added that the Swiss government in Bern should issue a guarantee to cover the risks associated with the acquisition. UBS’ acquisition of Credit Suisse would be the most significant banking merger in Europe since the financial crisis.

The downward trend in the share price has only stopped temporarily

Credit Suisse was already battered by scandal and mismanagement when it plunged into another downward spiral following the collapse of Silicon Valley Bank (SVB). It received a loan commitment from the Swiss National Bank in the amount of 50 billion Swiss francs (about 51 billion euros), but was only able to temporarily halt the downward trend in the share price.

The government in Bern is under great pressure to stabilize the situation. Because Credit Suisse is one of the 30 systemically important global banks, whose failure will destabilize the international financial system.

The Swiss newspaper “Tages-Anzeiger” sees the takeover of the bank by UBS as the only way out. Customer confidence is completely lost, and the money flow is massive. Many international banks have restricted their business with Credit Suisse. The loan of 50 billion Swiss francs from the National Bank is also useless. “Everyone is afraid of collapse,” the paper said.


note: This report is part of an automated service provided by the German Press Agency (dpa), which operates under strict journalistic rules. It is not edited or vetted by AZ Online Editors. Questions and hints please feedback@az-muenchen.de



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