Credit Suisse

Banking stocks tumbled on Monday as initial relief over a historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group gave way to ...

"I know that there must be still questions that we have not been able to answer," he said. "I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said. The MSCI index for financial stocks in Asia ex-Japan Quite the contrary, it has gone global," said Mike O'Rourke, chief market strategist, Jones Trading. regional banks and moral hazard. [(FRC.N)](https://www.reuters.com/companies/FRC.N), an institution rocked by the failures of Silicon Valley and Signature Bank [(SBNY.O)](https://www.reuters.com/companies/SBNY.O). The Swiss central bank said Sunday's deal includes 100 billion Swiss francs ($108 billion) in liquidity assistance for UBS and Credit Suisse. [only global bank](/business/finance/ubs-swallows-doomed-credit-suisse-casting-shadow-over-switzerland-2023-03-20/) and the Swiss economy more dependent on a single lender. [according to a memo](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to staff seen by Reuters. [moving some assets](/business/finance/credit-suisse-tells-staff-plans-investment-banking-be-informed-later-memo-2023-03-20/) to another bank if concentration was a concern. [(UBSG.S)](https://www.reuters.com/companies/UBSG.S) [will pay](/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-16/) 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) and assume up to $5.4 billion in losses. [angering some of the holders](/business/finance/credit-suisse-writes-down-17-bln-bonds-zero-angering-holders-2023-03-19/) of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

Falling prices in Asia and Europe drag down FTSE by 1.5% as UBS plunges 12%

“Focus is shifting to the implications of high-risk bond holders in banks, after holders of more risky Credit Suisse debt saw their investment wiped out. “In particular, common equity instruments are the first ones to absorb losses, and only after their full use would Additional Tier One [AT1] be required to be written down. Bank of East Asia fell 3.5%. [HSBC](https://www.theguardian.com/business/hsbcholdings) and Standard Chartered tumbled in the Asian stock market as details of UBS’s $3.2bn (£2.65bn) “emergency takeover” of Credit Suisse rattled global investors. [Banking](https://www.theguardian.com/business/banking) Authority and ECB Banking Supervision said they welcome the “comprehensive set of actions taken yesterday by the Swiss authorities”. [Credit Suisse](https://www.theguardian.com/business/creditsuisse) deal hasn’t changed their position on the hierarchy of debt when a bank fails.

Credit Suisse's largest shareholder confirmed to CNBC that it had suffered a loss of around 80% on its investment.

1.7% of SNB's investments portfolio," the Saudi National Bank said in a statement. Saudi National Bank chairman Ammar Al Khudiary on Wednesday was asked by Bloomberg if it would increase its stake in the troubled Swiss lender. The messy fallout, which spilled over across the entire banking sector, has ruptured market confidence and stoked fears of another global banking crisis. Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Shares of the lender were up 0.58% on Monday at 9:30 a.m. His comments ultimately failed to stem the bank's continued rout. - Despite the loss, Saudi National Bank says its broader strategy remains unchanged. Norway's sovereign wealth fund, Norges Bank Investment Management, is also a major shareholder. Shares of the lender were up 0.58% on Monday at 9:20 a.m. QIA did not reply to a request for further details. The significant discount comes as regulators try to shore up the global banking system. Shares of UBS, Switzerland's largest bank, traded down 10.5% at 9:28 a.m.

We'll send you a myFT Daily Digest email rounding up the latest UBS Group AG news every morning. UBS shares tumbled more than 10 per cent in early trading ...

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As early investor optimism about efforts to stem a banking crisis quickly evaporated, shares of Credit Suisse, UBS fell.

In a separate memo, the bank said that, as part of the takeover, if job cuts proved necessary it would be communicated to staff as per guidelines. The European Central Bank vowed to support eurozone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” in restoring calm. Credit Suisse shares slumped 62 percent in premarket trade to a new low while UBS lost 7.1 percent. “I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders,” Kelleher said. “I know that there must be still questions that we have not been able to answer,” he said. The MSCI index for financial stocks in Asia ex-Japan was down 1.3 percent.

Despite bold proclamations from Swiss authorities and central banks about a return to stability, the deal does not appear to have laid to rest concerns ...

"But in our view, it has become harder to assess the attractiveness of the current historically large spread pick-up provided by AT1 bonds vs. This could set in train renewed jitters about the health of banks." "This solves what I think is probably an idiosyncratic problem at Credit Suisse, but I'm not sure it's a firebreak big enough to stop the rot for the market," he said Monday. James Sym, head of equities at London-based investment manager River and Mercantile, told CNBC that the market was in "seek and destroy mode." "They are designed to impose permanent losses on bondholders or be converted into equity if a bank's capital ratios fall below a predetermined level, effectively propping up its balance sheet and allowing it to stay in business. The deal also includes support from the Swiss government, financial regulator FINMA, and the Swiss National Bank (SNB), which will offer a liquidity line of up to 100 billion Swiss francs, backed by a federal default guarantee. But as we discussed on Friday, we take comfort from the limited contagion from U.S. "Of course, we are mindful that the situation among U.S. The government will offer a loss guarantee of up to 9 billion Swiss francs, with UBS assuming the first 5 billion of potential losses. The U.S. hit us at the most unfavorable moment." bank has shifted back to an overweight allocation on European banks as a result.

RIYADH, Saudi Arabia, Mar 20 - Credit Suisse's largest shareholder Saudi National Bank on Monday said there was "no impact" on its growth plans or Kenya ...

“SNB remains focused on its core strategy of growth in Saudi Arabia, which is among the fastest growing countries within the G20.” “SNB remains comfortably above all prudential thresholds and continues to enjoy healthy capitalisation and liquidity,” the Saudi National Bank statement said, adding that its total assets topped 945 billion riyals ($251 billion). UBS said Credit Suisse shareholders would get 0.76 Swiss francs per share.

BEIJING (AP) — Global stock markets sank Monday after Swiss authorities arranged the takeover of troubled Credit Suisse amid fears of a global banking ...

The contract fell $1.61 on Friday to $66.74. Frankfurt’s DAX fell 1.4% to 14,555.79 and the CAC 40 in Paris lost 1.2% to 6,842.36. It retreated $1.73 the previous session to $72.97. [New York Community Bank agreed to buy part of failed Signature Bank](/article/signature-fdic-failure-new-york-community-bank-3c820646cc6574439fa158095594505e) in a $2.7 billion deal, the Federal Deposit Insurance Corp. That would be the same as the previous increase and half the margin traders expected earlier. crude plunged $2.45 to $64.29 per barrel in electronic trading on the New York Mercantile Exchange. On Friday, the S&P 500 lost 1.1%. On Wall Street, the future for the benchmark S&P 500 index was off 0.2%. In Hong Kong, HSBC Holdings plc dropped 6.23% while Standard Chartered fell 7.3% and Bank of East Asia gave up 4.5%. Prices of bonds and other assets on their books fell, fueling unease about the industry’s financial health. Swiss authorities on Sunday announced UBS would acquire its smaller rival as regulators try to ease fears about banks following the collapse of two U.S. Central banks announced coordinated efforts to stabilize lenders, including a facility to borrow U.S.

UBS Chairman Colm Kelleher said the acquisition was “attractive” for UBS shareholders, but clarified that, “as far as Credit Suisse is concerned, this is an emergency rescue.”.

The size of Credit Suisse was a concern for the banking system, as was its global footprint given its multiple international subsidiaries. This could set in train renewed jitters about the health of banks." "Acquiring Credit Suisse's capabilities in wealth, asset management and Swiss universal banking will augment UBS's strategy of growing its capital-light businesses." The bank's Chairman Colm Kelleher said the acquisition was "attractive" for UBS shareholders but clarified that "as far as Credit Suisse is concerned, this is an emergency rescue." Credit Suisse shares collapsed by 60% at around 9:05 a.m. London time (5:05 a.m.

Swiss regulators brokered rescue by UBS in bid to stop crisis from spreading across global financial system.

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“In my eyes, this is against the law,” said Patrik Kauffman, a fund manager at Aquila Asset Management, who invests in additional tier 1 (AT1) bank debt.

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Over $17 billion worth of AT1 bonds are being written off as part of the rescue plan.

[a bargain price](https://nypost.com/2015/04/09/dimon-says-no-doubt-about-it-bear-stearns-was-a-bad-idea/), buying the “ [house on fire](https://www.wsj.com/articles/BL-MBB-12060)” wasn’t worth it, chief Jamie Dimon has admitted on a number of occasions. Much to the chagrin of bondholders, AT1 bonds were “ [created for moments like this](https://fortune.com/2023/03/19/credit-suisse-risky-bonds-now-worthless-after-takeover-by-ubs/),” John McClain, portfolio manager at Brandywine Global Investment Management, [told Fortune](https://fortune.com/2023/03/19/credit-suisse-risky-bonds-now-worthless-after-takeover-by-ubs/) [$5 billion:](https://www.ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html) The size of the combined entity’s “total invested assets and sustainable value opportunities,” according to UBS [50 billion Swiss franc ($54 billion):](https://www.credit-suisse.com/about-us-news/en/articles/media-releases/csg-announcement-202303.html) Credit line Credit Suisse tapped from the Swiss National Bank on Mar. The Riyadh-based bank, born out of the April 2021 merger of National Commercial Bank and Samba Financial Group, told CNBC it suffered [an 80% loss](https://www.cnbc.com/2023/03/20/saudi-national-bank-loses-over-1-billion-on-credit-suisse-investment.html) on its investment. Credit Suisse’s rescue, by the digits [3 billion Swiss franc ($3.2 billion):](https://www.reuters.com/business/crunch-time-credit-suisse-talks-ubs-seeks-swiss-assurances-2023-03-19/) How much UBS is paying to buy Credit Suisse [60%:](https://twitter.com/udaykotak/status/1637659230839914498?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet) Discount to stock value at Friday (Mar. 16 as a liquidity backstop to help keep investor confidence up [100 billion franc ($110 billion):](https://www.snb.ch/en/mmr/reference/pre_20230319/source/pre_20230319.en.pdf) Liquidity assistance the Swiss central bank has offered UBS [9 billion franc ($9.6 billion):](https://www.admin.ch/gov/en/start/documentation/media-releases.msg-id-93793.html) The guarantee against potential losses the federal government is offering in order to reduce any risks for UBS [74,000:](https://www.ubs.com/global/en/our-firm/our-employees.html#:~:text=Our%20employees%20come%20from%2048,employees%20only%20(72%2C597%20FTE).) UBS employee headcount [50,480:](https://www.statista.com/statistics/270265/credit-suisse-employees-since-2005/) Credit Suisse employee headcount Charted: Credit Suisse’s plunging market cap Quotable: UBS buys Credit Suisse in “an emergency rescue” 17) closing [1:](https://www.credit-suisse.com/about-us-news/en/articles/media-releases/credit-suisse-and-ubs-to-merge-202303.html) UBS shares Credit Suisse shareholders will receive for every 22.48 shares they hold in Credit Suisse [24 hour dealsDiscover Samsung - Daily Deal](https://howl.me/cjmBY0oMYNY) [16 billion Swiss franc ($17.2 billion):](https://www.finma.ch/en/news/2023/03/20230319-mm-cs-ubs/) Additional tier 1 bonds that will be completely written down as part of the deal. JPMorgan [would not](https://www.fnlondon.com/articles/will-ubs-live-to-regret-its-credit-suisse-takeover-20230320?mod=fngooglenews) partake in a similar bailout now. “The firm initiating the takeover will drive the process and lean toward saving their employees—to the detriment of those who work for the acquired company,” Jack Kelly, founder and chief executive of search firm WeCruiter, [UBS Chairman Colm Kelleher] One big number: Credit Suisse’s biggest loser [$1 billion:](https://www.bloomberg.com/news/articles/2023-03-20/credit-suisse-deal-hands-top-holder-1-billion-investment-loss#xj4y7vzkg) How much the value of Credit Suisse’s top shareholder Saudi National Bank’s investment has plummeted in the last few months. 19), Credit Suisse and UBS entered into a merger agreement following the intervention of the Swiss Federal Department of Finance, the Swiss National Bank, and the Swiss Financial Market Supervisory Authority FINMA (FINMA). “UBS will be the surviving entity upon closing of the merger transaction,” Credit Suisse It is expected to be finalized by the end of 2023.

European markets are heading for a fall at Monday's open, with regional markets lacking direction at the start of the new trading week.

stock futures](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html) were mixed. London time after the [latter agreed to an emergency takeover](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) of its embattled rival. The combined bank will have $5 trillion of invested assets, according to UBS. Credit Suisse saw its shares tumble last week after its largest investor, the Saudi National Bank, declined to provide additional funding. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. [Credit Suisse](/quotes/CSG.N-CH/) shares were down 61.95% in pre-market trade via private bank Julius Baer, Reuters reported at 8:14 a.m. [Asia-Pacific markets largely fell on Monday](https://www.cnbc.com/2023/03/20/asia-markets-ubs-credit-suisse-china-loan-prime-rates.html), with eyes firmly on the European banking situation. CET to suspend trading in its shares. [UBS](https://www.cnbc.com/quotes/) [takeover](https://www.cnbc.com/2023/03/20/ubs-shares-tumble-after-emergency-rescue-of-rival-credit-suisse.html) of [Credit Suisse](/quotes/CSG.N-CH/). Credit Suisse has until the Swiss market open at 9:00 a.m. Following the emergency rescue, the combined bank will have $5 trillion of invested assets, according to UBS. [UBS](/quotes/UBS/) finalized an [agreement](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html) to buy its rival [Credit Suisse](/quotes/CS/) for $3.2 billion.

Swiss bank had SFr360mn of contingent capital awards outstanding at the end of 2022.

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LONDON (AP) — Credit Suisse shares plunged Monday after Swiss authorities cut a deal with its bigger rival UBS to acquire the troubled bank at a marked-down ...

bank collapses and the danger to Credit Suisse was “an international banking crisis in the making.” “The banking system of Europe has not fully recovered from the crisis” in 2008, he said. [Silicon Valley Bank and Signature Bank](/article/silicon-valley-bank-bailout-yellen-deposits-failure-94f2185742981daf337c4691bbb9ec1e) in the U.S., including high interest rates. But concerns about risks to the deal, losses for some investors and Credit Suisse’s falling market value could renew However, Credit Suisse weathered the 2008 financial crisis without assistance, unlike UBS. banks](/article/silicon-valley-bank-uk-bailout-hsbc-sale-4d2da0e9c6f39c0fd8faf321a2b295cf). [Shares of Credit Suisse](/article/credit-suisse-banking-shares-plunge-switzerland-ba1861aa8b61170c00a2789287dc9a08), whose woes stem from questions over its internal controls, closed nearly 56% lower a day after UBS said it would buy its fellow Swiss bank for a lowball price of 3 billion Swiss francs ($3.25 billion). UBS is bigger but Credit Suisse wields considerable influence, with $1.4 trillion assets under management. Analysts say some previous forced bank mergers didn’t work out well for shareholders in the long run. failures have raised questions about other potentially weak global financial institutions, sweeping up the already beleaguered Swiss bank. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further [upheaval in the global financial system](/article/banks-federal-reserve-silicon-valley-lending-rescue-a04875a164165b50e971ff4576bf4e27). The shares traded at about the level they are valued at in the deal.

Bankers in London braced for hundreds of potential job losses and a hit to Britain's already-dented financial sector after the historic rescue of Credit ...

Outside Credit Suisse's offices on Monday there was little sign of the tumult. Those who were more loyal and didn't do so are now talking to headhunters," said Stephane Rambosson, co-founder of Vici Advisory which specialises in hiring senior investment bankers. [(HSBA.L)](https://www.reuters.com/companies/HSBA.L) separately [reviewing its commitment to a 45-floor tower](/business/finance/hsbc-review-location-global-hq-london-memo-2022-09-29/) elsewhere on the estate. Credit Suisse was one of the first major banks to be lured to the area by the prospect of cheaper office space in the early 1990s and houses the bulk of its UK staff in the One Cabot Square building in the western part of the estate. Register for free to Reuters and know the full story LONDON, March 20 (Reuters) - Bankers in London braced for hundreds of potential job losses and a hit to Britain's already-dented financial sector after the historic rescue of Credit Suisse

Decision over bonds rips up convention and could undermine confidence in banking system.

Since there are reckoned to be $275bn (£224bn) of these instruments in issue around the world, it is not a small market to mess with – thus other regulators’ scramble to say nothing has changed in their back yards. But the long-term impact of the ATI affair is the big unknown. The problem is solely the ripping-up of the hierarchy of financial pain. One could take the view that shareholders are getting only a tiny sum of less than a franc a share but, by rights, the figure ought to be zero. And the terms, at face value, look generous to UBS, so the risk of creating a bigger banking whirlpool is lessened. [do the deal over a weekend](https://www.theguardian.com/business/2023/mar/19/credit-suisse-bank-of-england-wont-object-to-takeover-as-ubs-considers-1bn-bid).

The surprise move by the SNB has rattled Europe's AT1 bond market, with investors now questioning whether their holdings could be obliterated if another bank ...

given the level of solvency of Credit Suisse… Quinn Emanuel Urquhart & Sullivan, a litigation firm headquartered in Los Angeles, said Monday that it had assembled a team of lawyers who were discussing options with Credit Suisse’s AT1 bondholders. But it is the owners of Credit Suisse’s $17 billion worth of “additional tier one” (AT1) bonds who have been left fully in the cold. “The hierarchy of claims remains applicable in the EU… WisdomTree, another AT1 ETF listed on the London Stock Exchange, fell 7.4% in afternoon trade. The move is at odds with the usual hierarchy of losses when a They were created in the wake of the 2008 financial crisis as a way for failing banks to absorb losses, making a taxpayer-funded bailout less likely. Credit Suisse shareholders will be largely wiped out, receiving the equivalent of just 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday. [and] pretty high level of regulatory capital,” he said. “This approach has been consistently applied in past cases.” there is no way that shareholders can be paid and AT1 holders [are] paid zero,” Benamou said. The Bank of England said that “holders of [AT1s] should expect to be exposed to losses” when a bank fails according to their usual ranking in the capital hierarchy.

The Swiss government has come under fire from bondholders and international regulators for its handling of the $3.2bn rescue-takeover of Credit Suisse by ...

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U.S. Treasury yields rose on Monday as investors considered the stability of the banking sector after Swiss bank UBS agreed to buy its rival Credit Suisse.

[finalized the takeover of Credit Suisse by UBS](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), the two largest Swiss banks. [joint liquidity operation with several other central banks](https://www.cnbc.com/2023/03/19/fed-other-central-banks-set-joint-liquidity-operation.html) around the world. "Our expectation is that the FOMC will raise the policy rate by 25bps, not 50bps," said Thierry Wizman, global FX and rates strategist at Macquarie. The Fed's next meeting is due to begin Tuesday, with a fresh interest rate policy decision expected Wednesday. The [2-year Treasury](/quotes/US2Y/) yield was trading at around 3.96% after rebounding to trade 11 basis points higher. The ETF at one point rose 5% during Monday's trading session, but saw some of its gains reverse as First Republic shares slide 47%.

The takeover of its local rival could end up being a generational boon for UBS. But the government-orchestrated deal has angered many investors.

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Investors responded in kind. In Europe, UBS shares rose 1.02% (though Credit Suisse tanked 55.74%, making each share worth less than $1). Banking stocks in the ...

[managed to rebound](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). [First Republic Bank continued sinking](https://www.cnbc.com/2023/03/20/first-republic-falls-sp-credit-rating-downgrade.html). All [major indexes made minor gains](https://www.cnbc.com/2023/03/19/stock-market-today-live-updates.html). Bondholders, unsurprisingly, [aren't happy about it](https://www.cnbc.com/2023/03/20/17-billion-of-credit-suisse-bonds-worthless-following-ubs-takeover.html). [UBS to buy Credit Suisse](https://www.cnbc.com/2023/03/19/ubs-agrees-to-buy-credit-suisse-as-regulators-look-to-shore-up-global-banking-system.html), with an aim [to increase confidence in the banking sector](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html). The banking crisis is causing regional banks — which account for around a third of all lending in the United States — to reduce their loans, said Eric Diton, president and managing director of The Wealth Alliance. This suggests markets are already so jittery that whatever the Fed does — even if it's nothing — it might cause instability to spread. New York Community Bancorp (which [agreed to buy Signature Bank](https://www.cnbc.com/2023/03/20/fdic-announces-agreement-to-sell-signature-bank-assets.html)over the weekend) surged 31.65%, PacWest Bancorp jumped 10.78% and KeyCorp edged up 1.21%. Some bank stocks are in the doldrums, yes, but the SPDR S&P Regional Banking ETF, a fund of regional bank stocks, rose 1.11% on Monday. To stem the rout, [JPMorgan Chase is advising First Republic](https://www.cnbc.com/2023/03/20/jpmorgan-advising-first-republic-on-strategic-alternatives-including-a-capital-raise-sources-say.html)on strategic alternatives such as raising capital or attempting a sale, sources told CNBC's David Faber. The Dow Jones Industrial Average gained 1.2%, the S&P 500 added 0.89% and the Nasdaq Composite increased 0.39%. Banking stocks in the [pan-European index, Stoxx 600](https://www.cnbc.com/2023/03/20/european-markets-live-updates-ubs-buys-credit-suisse-news-stocks.html), were up 1.3%, giving the index a 1% gain.

Days before a hastily convened press conference late on Sunday that would make the world's front pages, Switzerland's political elite were secretly ...

"When you are a bank for billionaires, deposits can fly away very quickly," said one of the people involved. A spokesperson for FINMA said that although it laid emphasis on Britain and the U.S. "The taxpayer in this scenario has less risk," said Keller-Sutter. In banking center Zurich and Bern, the Alpine state's capital, pressure was building. Credit Suisse banks many Swiss companies and citizens - including finance minister Keller-Sutter. Credit Suisse's arms in Luxembourg, Spain and Germany were far smaller. By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis. In a matter of days its demise was sealed. It's a completely different ecosystem." monitored on a daily basis," he told Reuters. "They're a globally systemically important bank so ... The rescue concentrates even greater risks into one banking behemoth, UBS Group AG.

Credit Suisse's “CoCo” bonds did exactly what they were designed to do: Transfer all the risk of debt from the bank to bondholders.

"Only time will tell how this shotgun wedding is received," one analyst said of merger uniting the Swiss banks.

"The banking system of Europe has not fully recovered from the crisis" in 2008, he said. The deal follows the collapse of two large U.S. As part of the deal, approximately 16 billion francs ($17.3 billion) in higher-risk Credit Suisse bonds will be wiped out, leaving investors with hefty losses. But concerns about risks to the deal, losses for some investors and Credit Suisse's falling market value could renew fears about the health of banks. [urged UBS to take over its smaller rival](https://www.cbsnews.com/news/ubs-purchase-credit-suisse-fallout-silicon-valley-bank/) after a central bank plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) last week failed to reassure investors and customers. Tobias Straumann, an economic history professor at University of Zurich, said the merger was the right move because the U.S. It has faced an array of troubles in recent years, including bad bets on hedge funds, repeated shake-ups of its top management and a spying scandal involving UBS. Shares of Credit Suisse and other banks had tumbled last week after the failure of two banks in the U.S. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further upheaval in the global banking system. In an indication of the frantic, behind-the-scenes deal-making by Swiss authorities to resolve the issue before markets opened, the acquisition was announced late Sunday. The deal added volatility to other European bank stocks, which fell in early trading even as benchmark indexes climbed, before some clawed back their losses. UBS shares initially fell on the Swiss stock exchange but had gained more than 6% in afternoon trading.

Credit Suisse's domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, ...

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Chair of Single Resolution Board adamant Brussels will not take investors in bank debt 'by surprise'

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US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks ...