Free Republic

UBS Group is planning to cut more than half of Credit Suisse Group’s workforce starting next month as a result of the bank’s emergency takeover. Bankers, traders and support staff in Credit Suisse’s investment bank in London, New York, and in some parts of Asia are expected to bear the brunt of the cuts, with almost all activities at risk, people familiar with the matter said. Staffers have been told to expect three rounds of cuts this year, with the first expected by the end of July and two more rounds tentatively planned for September and October, the people added,...

A group of creditors have filed legal action against the country’s financial regulator, arguing it violated Swiss law when it wrote down around $17 billion of bank bonds ... Credit Suisse Group AG bondholders have launched a legal challenge in Switzerland against regulators’ decision to write down $17 billion in securities as part of UBS Group AG’s rescue of the troubled bank last month. Bondholders holding about 4.5 billion Swiss francs ($5 billion) of Credit Suisse’s canceled debt want the decision to write down their bonds revoked or amended ... The bondholders are alleging the total write-down was disproportionately punitive...

...The deal for the bank... included the purchase of about $72 billion in loans, at a discount of $16.5 billion, and the transfer of all the bank's deposits, worth $56 billion. Roughly $90 billion in Silicon Valley Bank's securities and other assets were not included in the sale, and remained in the F.D.I.C.'s control.Silicon Valley Bank had roughly $175 billion in deposits before its collapse, an illustration of how extensive the withdrawals were before it was seized by regulators...As part of the deal, the F.D.I.C. will receive rights linked to the stock of First Citizens, which could be worth up...

Here comes the panic. Bloomberg just reported that Treasury Secretary Janet Yellen – who was singlehandedly responsible for stoking and restarting the bank crisis on Wednesday which until that day was easing back, with her comments that nobody in charge was even talking about a uniform deposit insurance, let alone working on one – will convene the heads of top US financial regulators Friday morning for a previously unscheduled meeting of the Financial Stability Oversight Council. The meeting will be closed to the public, the Treasury Department said in a statement. The Treasury didn’t say what time the meeting would...

ZURICH—The chairman of Switzerland’s largest bank received an urgent call last week. On the other end were three top Swiss officials who delivered an ultimatum dressed up as a proposal. UBS Group AG UBS needed to rescue its failing rival, Credit Suisse CS Group AG. For any country, it would be a financial emergency. For Switzerland, the stakes verged on existential. Its economic model and national identity, cultivated over centuries, were built on safeguarding the world’s wealth. It wasn’t just about a bank. Switzerland itself needed rescuing. It was Thursday, barely 24 hours into an escalating banking crisis and Credit...

Credit Suisse said 16 billion Swiss francs ($17.24 billion) of its Additional Tier 1 debt will be written down to zero on the orders of the Swiss regulator as part of its rescue merger with UBS (UBSG.S), angering bondholders on Sunday. FINMA, the Swiss regulator, said the decision would bolster the bank's capital. The move reflects authorities' desire to see private investors share the pain from Credit Suisse's troubles.

Swiss National Bank said in a statement. “This takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority and the Swiss National Bank,”

A senior executive at Swiss investment bank Credit Suisse who claims to be “nonbinary” and “gender fluid” spent much of the past several years campaigning for LGBTQ inclusion in the global financial system as performance at the company declined. The financial institution named several “material weaknesses” with respect to risk assessment strategy in a recently published annual report. The Swiss Financial Market Supervisory Authority and the Swiss National Bank provided the company with $54 billion in liquidity on Thursday in order to prevent the collapse of the “systemically important” institution. Jordan Schachtel, an independent journalist at The Dossier, noted on...

Credit Suisse, the global investment bank based in Switzerland, would be six feet under today if not for the $54 billion bailout it just got from the Swiss central bank. I'm starting to see a pattern in these failing banks… see tweet https://twitter.com/JordanSchachtel/status/1636353368644886528?

Investors appear unconvinced that plans to shore-up First Republic and Credit Suisse will stave-off contagion in the banking sector.First Republic (FRC) shares were halted from trading again Friday, after resuming their recent slump, following a coordinated rescue of the San Francisco-based lender late Thursday was marred by concerns over the strength of its balance sheet. Credit Suisse shares were also firmly lower in Zurich, following data showing a surge in outflows from its managed funds earlier this week and a downgrade of its credit rating to the edge of 'junk' status by DBRS Morningstar. First Republic said in a Securities...

We knew this was the endgame more than two weeks ago when we reported that "Credit Suisse Crashes To All Time Low After Boosting Deposit Rates To Reverse Bank Run" in which we reported that after a quarter of "staggering" bank runs, the second largest Swiss bank - clearly panicking - was offering a 6.5% annual rate on new three-month deposits of $5 million or above - and a rate as high as 7% for one-year deposits - far above matched maturity Bills, and suggesting that to attract a client, the bank is forced to eat a loss.The hope, we...

Credit Suisse Group AG said it would borrow up to 50 billion Swiss francs, equivalent to $53.7 billion, from the Swiss central bank to shore up its liquidity, capping a day in which fears about the health of global banks leapfrogged to Europe from North America and the giant lender’s shares dropped as much as 24%. The bank also said it would repurchase $3 billion worth of senior debt whose value has plunged along with the perceived health of banks on both sides of the Atlantic. The Zurich firm stressed in a press release issued in the evening in New...

Shares of embattled bank Credit Suisse on Wednesday hit another all-time low for a second consecutive session, dropping by more than 21% shortly before being halted from trade. Credit Suisse’s largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report. “We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters Wednesday. Several Italian banks were also subject to automatic trading stoppages after sharp declines, including UniCredit, Finecobank and Monte Dei Paschi. The embattled Swiss lender disclosed...

Intensification of Swiss lender’s difficulties comes days after two major bank failures in the U.S. Credit Suisse Group AG shares fell more than 25% Wednesday and hit a fresh record low, reflecting increasing concerns that troubles that hit regional U.S. banks have migrated across the Atlantic.

U.S. stock were sharply lower Wednesday morning as two economic prints showed a slowdown in February, coupled with fresh turmoil at Credit Suisse that weighed on sentiment. The S&P 500 plunged 1.4%, while the Dow Jones Industrial Average fell 1.6%. Contracts with the technology-heavy Nasdaq Composite dropped 1%... But fresh troubles at Credit Suisse injected more jitters into markets Wednesday. The European bank's stock fell more than 20%, plunging to a record low after its biggest backer said it could not provide any more assistance. Credit Suisse on Tuesday disclosed in a report that it had identified "material weaknesses" in...

KEY POINTS Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day. Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank. Speaking to CNBC’s Hadley Gamble during a panel session in Riyadh, Saudi Arabia, on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future. ****************************************************************************** Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor in the embattled Swiss bank...

Apparently, the NEO financial crisis (not the subprime, but The Fed’s “too low for too long” crisis is still with us. Credit Suisse Group AG’s top shareholder, whose stake has lost more than one-third of its value in three months, ruled out investing any more in the troubled Swiss bank as a bigger holding would bring additional regulatory hurdles. “The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory,” Saudi National Bank Chairman Ammar Al Khudairy said in an interview with Bloomberg TV on Wednesday. That was in response to a question on...

VIDEOMeet Wokety Woke Woke Canadian Banker Mark Carney. If he was just the crackpot director of a small local bank that would be one thing. Unfortunately he has taken his Carney act to global levels as governor of both the Bank of Canada as well as the Bank of England. And now he is spouting off on a globalist stage at places such as the World Economic Forum. Listen to him talk and that will give you a good example of why banks such as Silicon Valley Bank and Signature Bank have collapsed and Credit Suisse seems about to fail.

Credit Suisse stock declined towards multi-decade lows amid worries about the company’s financial healthCredit Suisse reported a loss of $1.5 billion, the company’s biggest loss since the global financial crisis. The company recorded outflows of $120 billion in the fourth quarter as clients took their funds elsewhere. Assets under management declined from $802 billion at the start of 2022 to $583 billion at December 31, 2022. Credit Suisse, which is one of the biggest Switzerland’s banks, has never recovered from the 2008 financial crisis. The company’s shares touched highs near the $77.50 level in 2007 and have been moving lower...

Bud Brigham, the executive chairman of Brigham Minerals, testified Thursday before the Texas Senate Committee on State Affairs that a Wall Street bank allegedly threatened to deny him a loan unless he tweeted out specific political messages. Republican Texas state Sen. Bryan Hughes led the hearing on environmental, social and governance (ESG) investing, an approach to investing that scores companies based on their commitment to certain environmental and social causes. Brigham testified that, during a capital raise with Credit Suisse, with whom he claims to have raised over $1 billion with over 15 years, the bank instructed him put out...