{"id":18887,"date":"2023-03-18T20:31:46","date_gmt":"2023-03-18T20:31:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ubs-considers-acquiring-credit-suisse-requests-government-backstop-in-deal-bitcoin-news\/"},"modified":"2023-03-18T20:31:46","modified_gmt":"2023-03-18T20:31:46","slug":"ubs-considers-acquiring-credit-suisse-requests-government-backstop-in-deal-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ubs-considers-acquiring-credit-suisse-requests-government-backstop-in-deal-bitcoin-news\/","title":{"rendered":"UBS Considers Acquiring Credit Suisse, Requests Government Backstop in Deal \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After Credit Suisse Group AG announced it would borrow 50 billion Swiss francs from the Swiss National Bank, UBS Group AG is reportedly considering acquiring the banking giant. However, UBS is requesting that the government issue a backstop to protect against any losses if it purchases Credit Suisse. According to unnamed sources familiar with the matter, UBS, which is the world\u2019s largest private bank, wants the government to safeguard the deal.<\/strong><\/p>\n

Credit Suisse\u2019s Troubles Deepen as UBS Considers Takeover Amidst Banking Industry Challenges<\/h2>\n

There are many deals happening behind the scenes in the modern banking world. On Friday, it was reported<\/a> that UBS Group AG is in discussions to acquire all or parts of the banking giant Credit Suisse Group AG. Sources familiar with the talks say that the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank are involved in the discussions between UBS and Credit Suisse. Regulators from Switzerland note that the merger, called \u201cPlan A,\u201d is an attempt to bolster investor and depositor confidence in Credit Suisse. On Thursday, Credit Suisse announced<\/a> it was borrowing 50 billion Swiss francs ($54 billion) from the Swiss National Bank to bolster liquidity.<\/p>\n

On Saturday, Bloomberg and several other publications reported<\/a> that merger talks have intensified, and UBS wants protection against potential losses it may face if it acquires Credit Suisse. Bloomberg contributors Jan-Henrik Foerster, Dinesh Nair, Marion Halftermeyer, and Esteban Duarte detailed that UBS is discussing specific scenarios with the Swiss government. According to sources familiar with the matter who requested anonymity, UBS is interested in Credit Suisse\u2019s wealth and asset management units, but the bank wants a government-brokered deal that includes a backstop.<\/p>\n

The report further stated that before the Swiss government-brokered discussions, UBS executives were hesitant to acquire the competitor bank and take on the risks associated with Credit Suisse. Sources familiar with the matter told<\/a> Reuters that Credit Suisse\u2019s chief financial officer Dixit Joshi and his team convened over the weekend to discuss the bank\u2019s options. Besides UBS, the report notes there were multiple reports of interest from rivals. This is not the first sign of trouble for the Swiss bank, as Credit Suisse and Deutsche Bank suffered from distressed valuations<\/a> in October of last year. At that time, the banking giant\u2019s credit default insurance approached 2008 levels.<\/p>\n

Credit Suisse\u2019s current issues intensified after the failures of Silvergate Bank<\/a>, Silicon Valley Bank<\/a>, and Signature Bank<\/a>. In addition, 11 lenders injected<\/a> $30 billion into First Republic Bank last week to prevent the bank from collapsing. Over the last seven days, Credit Suisse\u2019s shares<\/a> have lost about a quarter of their value. Year-to-date, Credit Suisse\u2019s stock has declined by 35.58%.<\/p>\n

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Acquisition<\/a>, acquisition financing<\/a>, backstop<\/a>, Banking<\/a>, banks<\/a>, bid<\/a>, Challenges<\/a>, competition<\/a>, Compliance<\/a>, credit suisse<\/a>, Credit Suisse Bank<\/a>, Deal<\/a>, dividends<\/a>, due diligence<\/a>, Executives<\/a>, financial stability<\/a>, global financial system<\/a>, Government<\/a>, industry<\/a>, Investors<\/a>, landscape<\/a>, Losses<\/a>, Market Share<\/a>, Oversight<\/a>, political backlash<\/a>, potential merger<\/a>, private bank<\/a>, profits<\/a>, Protection<\/a>, Regulations<\/a>, regulatory approval<\/a>, Reputation<\/a>, risk management<\/a>, rumors<\/a>, Shareholders<\/a>, shareholders’ meeting<\/a>, stock prices<\/a>, Strategy&<\/a>, swiss<\/a>, Swiss National Bank<\/a>, Transparency<\/a>, UBS<\/a>, UBS Bank<\/a>, unnamed sources<\/a><\/div>\n<\/div>\n

Should the Swiss government provide a backstop to protect UBS\u2019s acquisition of Credit Suisse? In the comments section below, let us know what you think about this subject.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, 360b \/ Shutterstock.com<\/em><\/p>\n

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