Switzerland’s Two Largest Banks To Combine | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Daniel Chaitin.

    Switzerland's two largest banks are poised to merge in a deal regulators sought to help create stability as volatility rocks financial institutions around the globe.

    UBS, the larger of the pair, agreed on Sunday to buy troubled competitor Credit Suisse for more than $3 billion, according to The Wall Street Journal.

    "With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation," said the Swiss National Bank.

    The exact details of the arrangement are not all fully clear, but the Financial Times reported that Swiss authorities were working to speed up the process by changing laws to bypass a shareholder vote.

    In addition, the Swiss National Bank said it would offer a loan of up to 100 billion Swiss francs ($108 billion) to support the takeover, and the Swiss government pledged to cover about 9 billion francs ($9.7 billion) worth of potential losses for assets being taken over by UBS, per CNBC.

    Swiss President Alain Berset said the deal is "one of great breadth for the stability of international finance," the Associated Press reported. "An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system."

    The Financial Stability Board, an international group that assesses the global financial system, considers Credit Suisse to be one of 30 "systemically important" banks.

    With its shares plummeting by 75% in the past 12 months, Credit Suisse received a lifeline of 50 billion franks, or $54 billion, from the Swiss central bank last week, but CNN reported that did not fully reassure investors. The purchase price reported on Sunday would be less than half the 7.4 billion francs Credit Suisse was worth at the close of trading on Friday, according to Bloomberg News.

    Credit Suisse, which is nearly 167 years old, reportedly had about 50,000 employees by the end of 2022 while UBS has about 74,000 employees around the world.

    News of the purchase comes after Silicon Valley Bank, Signature Bank, and Silvergate Bank collapsed this month, after which the U.S. federal government took steps to protect depositors.

    Treasury Secretary Janet Yellen assured Congress last week that the U.S. financial system "remains sound," and 11 major banks offered $30 billion in deposits to assist the struggling First Republic Bank.

    Billionaire investor Warren Buffett reportedly spoke with Biden administration officials in recent days about contending with the banking crisis, including a possible investment into the U.S. regional banking sector.
Go Back

HbAD0

Latest Regional Business

WASHINGTON, NC— The Beaufort County Community College Foundation received a $40,000 donation from the First Annual Belhaven Trout Tournament and Festival.
Coming on the heels of a second-quarter report that saw losses of $526.7 million, VinFast reported Thursday that it lost an additional $623 million for the third quarter of 2023.
Charlotte has joined a list of major US cities who recently placed a formal bid to designate the Queen City as a nationally recognized regional tech hub.
As North Carolina is America’s ninth most populous state, film and television producers are working with the Tarheel State in mind.
Beaufort County officials on Thursday helped the Beaufort County Committee of 100 welcome renowned e-commerce, digital marketing, and consulting firm BTW Global, LLC to its new headquarters in Washington.
Disney plans to eliminate thousands of jobs next week, dismissing as many as 15% of entertainment staffers, according to a recent report from Bloomberg.
Neuralink founder Elon Musk said he hopes implanting wireless brain-computer chips in humans will play a role in the existential risk of population reduction posed by artificial intelligence.
Ford announced on Monday that it is pausing construction on a multi-billion dollar battery plant in Marshall, Michigan that had drawn scrutiny from U.S. lawmakers over the company’s partnership with Chinese battery-maker Contemporary Amperex Technology Co. Ltd., or CATL.
On Tuesday, for the second year in a row, North Carolina earned the top spot in CNBC’s annual “America’s Top States for Business” rankings out of all 50 states.

HbAD1

North Carolina is one of six southern states that, together, have become an economic powerhouse, overtaking the once dominant Northeast region of the United States. That’s according to a new analysis from Bloomberg.
North Carolina is set to receive over $1.53 billion in federal funding to help with expanding high-speed internet across the state. The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) made the announcement Monday.
It’s not just young people who are getting screwed by the current economy.
The Federal Reserve hiked interest rates to the highest level in 22 years on Wednesday, despite easing inflationary pressures.
David Stevens, a senior housing official under former President Barack Obama, condemned a proposal from President Joe Biden that will effectively penalize financially stable homebuyers to subsidize those with higher risk.
North Carolina benefitted from the COVID-19 pandemic in terms of small business migration. That’s according to a new Bureau of Labor Statistics report.
Last week, Beer Serves America reported that the beer industry contributes 75,082 jobs and brings in about $1.8 billion in taxes to the state of North Carolina.

HbAD2

 
Back to Top