The largest company caught up in the market turbulence caused by the failure of American lenders Silicon Valley Bank and Signature Bank over the past week is the 167-year-old Credit Suisse, which has lost a quarter of its stock market value since Monday.According to two persons with knowledge of the situation, UBS was under pressure from the Swiss government to acquire its regional rival in order to quell the problem. The strategy might involve Credit Suisse’s Swiss company being protected from the risks by a guarantee from the Swiss government, while The financial authority for Switzerland, FINMA, Credit Suisse, and UBS all declined to comment.
Source: Money Control Those with knowledge of the situation claimed that Credit Suisse Chief Financial Officer Dixit Joshi and his staff met over the weekend to discuss their options for the bank, and there were numerous rumors of rival interest.While Bloomberg claimed that Deutsche Bank was considering the potential of purchasing part of the bank’s assets, American financial juggernaut BlackRock stated that it has no intentions for or interest in making a competing offer for Credit Suisse.
Source: Bloomberg Television This week, Credit Suisse’s stock price fluctuated drastically, forcing it to use $54 billion in central bank liquidity.
Switzerland, long regarded as a model of banking stability, was in a reflective mood as executives debated the future.
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