Credit Suisse news – latest: UBS shares suffer largest fall since 2008 after rescue deal

London markets grapple with takeover as FTSE 100 down 0.7 per cent today

UBS to acquire rival bank Credit Suisse amid crisis

UBS shares have fallen by as much as 16 per cent in early trade, their biggest one-day fall since 2008.

It follows concerns among investors about the long-term benefits of the rescue deal for Credit Suisse and the outlook for banks in Switzerland.

In a package engineered by Swiss regulators on Sunday, UBS Group AG will pay 3 billion Swiss francs (£2.65bn) for Credit Suisse Group AG and assume up to 5 billion francs (£4.4bn) in losses.

Credit Suisse shares slumped 62 per cent, reflecting the huge loss its shareholders will see in their investment in the bank.

Meanwhile, the FTSE 100 was down 0.7 per cent as markets opened in London, after UBS agreed a rescue deal to buy its banking rival Credit Suisse in a $3.2bn takeover.

Asia markets were also mostly down on Monday morning, with Hong Kong’s Hang Seng index leading losses in the region – falling more than 2 per cent and dragged down by healthcare stocks, CNBC reported.

Key Points

• UBS shares suffer largest fall since 2008 after Credit Suisse deal
• European banks take early hit after Credit Suisse rescue deal agreed
• FTSE 100 falls after Credit Suisse sold to UBS
• How worried should we be about bank collapse contagion?

[20 March 2023 05:30 · Sravasti Dasgupta]

Six central banks to boost flow of US dollars

Six central banks have moved to boost the flow of US dollars to alleviate unease in global financial markets.

In a joint statement, the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, the US Federal Reserve and the Swiss National Bank said they had launched the co-ordinated action to “enhance the provision of liquidity”, reported the BBC.

The statement added that the move was an “important backstop to ease strains in global funding markets” and to lessen the impact on the supply of credit to households and businesses.

The arrangement, first adopted during the 2008 financial crisis and again during the Covid pandemic, will start on Monday and continue “at least through the end of April”, the Bank of England said.

The Bank of England will be under scrutiny on Thursday when it decides whether or not to push interest rates even higher (John Walton/PA) (PA Wire)

[20 March 2023 05:00 · Sravasti Dasgupta]

UK banking system ‘safe and sound’ after Credit Suisse buyout, Bank of England says

The Bank of England (BoE) has insisted Britain’s financial system is “safe and sound” in an effort to calm nerves as markets prepare to reopen in the wake of the emergency sale of Credit Suisse to UBS.

[20 March 2023 04:30 · Sravasti Dasgupta]

UBS to buy crisis-hit rival bank Credit Suisse

Banking giant UBS will buy its ailing rival Credit Suisse in a snap deal brokered by Swiss authorities to avoid further chaos in markets after a series of high-profile financial failures.

[20 March 2023 03:54 · Sravasti Dasgupta]

Asia markets fall as UBS offers to buy Credit Suisse

Asia markets were mostly down on Monday morning with Hong Kong’s Hang Seng index leading losses in the region, falling more than 2 per cent and dragged down by healthcare stocks, reported CNBC.

The Shanghai Composite was up 0.27 per cent, while the Shenzhen Component was 0.39 per cent higher.

Japan’s Nikkei 225 was 0.83 per cent down and the Topix was 0.9 per cent lower.

Meanwhile in South Korea, Kospi is 0.27 per cent lower while the Kosdaq was trading at 0.69 per cent higher.

FILE-A woman wearing a face mask looks at an electronic foreign currency exchange rates in downtown Seoul, South Korea (Copyright 2023 The Associated Press. All rights reserved)