In the News
2023 Banking Crisis - Credit Suisse rescued by Swiss rival UBS
Here are details of the emergency and rushed rescue of Credit Suisse by its Swiss rival UBS. The Swiss have taken pre-emptive action to prevent the collapse of Credit Suisse, with banking giant UBS stepping in, with the support of the Swiss government.
The FT reports that "the Swiss central bank stepped in to force a merger after becoming concerned about the viability of the country’s second-largest lender."
The Guardian reports that "years of scandals at Credit Suisse eroded its reputation and profitability, before a sharp loss of confidence among investors last week threatened its viability."
The President of Swiss Federal Council is reported as saying that the move comes after it became clear “it was not possible to restore confidence… It would have had unthinkable consequences for our country and the international financial system.”
Are there significant systemic risks involved? Holders of $17bn of Credit Suisse bonds will have their investment wiped out following the bank’s takeover by UBS.
The Guardian asks - are we in a banking crisis?
Robert Peston on the scale of the write down of the book value of Credit Suisse.
Ed Conway (Sky) on the response by central banks to maintain liquidity in the wider banking system and minimise the risks from a credit crunch.
US banks are scrambling to take the liquidity support on offer from the Federal Reserve.