(1 hour ago) Sunday, March 19, 2023, 11:08 am
Switzerland’s biggest bank UBS is looking to buy all or part of troubled rival Credit Suisse. Online BBC reported that the discussion is going on. The credit index recently found in their financial reports that there was a ‘material weakness’ detected. After that, their share price has been falling rapidly for a few days. In this situation, they have asked the Swiss National Bank for an emergency loan of 54 billion dollars to deal with the situation, so that they can survive. But the matter has not been decided yet. Regulators are trying to reach a deal before markets reopen on Monday. Shares of Credit Suisse fell 24 percent on Wednesday. Concerns have arisen that the price may fall further when trading resumes on Monday. As a result, the European market has panicked.
A massive financial crisis is being feared in the financial sector. Meanwhile, the Swiss government held an emergency meeting on Saturday night. But there has been no official statement on whether there has been an agreement. However, if the government wants to buy Credit Suisse, UBS has asked them to pay about $6 billion, sources said. But any deal could result in significant job losses.
This happened after the collapse of two US lenders, Silicon Valley Bank and Signature Bank. This has raised further concerns.
