UBS mulls Credit Suisse takeover amid US bank fallout: What you need to know

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 19 (Reuters) - UBS AG is asking the Swiss government to cover about $6 billion in costs if it were to buy rival Credit Suisse, a person with knowledge of the talks said, as the two sides raced to hammer together a deal to restore confidence in the ailing Swiss bank.


DEVELOPMENTS
* A takeover of Credit Suisse by UBS could see the Swiss government offer a guarantee against the risks involved, two people with knowledge of the matter said.
* Berkshire Hathaway Inc's Warren Buffett has held discussions with senior Biden administration officials about the banking crisis, a source familiar with the matter told Reuters.
* At least four major banks, including Societe Generale and Deutsche Bank , are restricting new trades involving Credit Suisse or its securities, five sources told Reuters.
* U.S. investment giant BlackRock denied a report in the Financial Times that it was participating in a rival bid for all or parts of Credit Suisse.
* First Citizens BancShares is evaluating an offer for Silicon Valley Bank and at least one other suitor is seriously considering an offer, Bloomberg News reported on Saturday.
* The Mid-Size Bank Coalition of America has asked regulators to extend federal insurance to all deposits for two years, Bloomberg News reported, citing a letter from the coalition.
* The lightning speed of the banking industry's descent into turmoil has shaken global markets and governments, reviving eerie memories of the global financial crisis. Like 2008, the effects may be long-lasting.
* European Central Bank Governing Council member Pierre Wunsch said he did not expect a repeat of the 2008 financial crisis despite turbulence caused by the collapse of Silicon Valley Bank, saying European banks were subject to tougher rules than regional U.S. banks.
* Goldman Sachs cut its recommendation on exposure to European bank debt to neutral from overweight, saying a lack of clarity on Credit Suisse's future path would put pressure on the broader sector.
* A senior People's Bank of China official said the collapse of SVB showed how rapid monetary policy shifts were having spillover effects, state-owned newspaper Shanghai Securities News reported. MARKETS
* As worries over banks swirl, investors are seeking protection against a market crash. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX-Which companies are affected by SVB collapse? FACTBOX-SVB collapse may prompt Fed to go slow on rate hikes EXPLAINER-What caused Silicon Valley Bank's failure? BREAKINGVIEWS-Bank rescue buys stability at a high price BREAKINGVIEWS-Bank-rule pendulum swings back to 'safety first' GRAPHIC-The path to the fall of Silicon Valley Bank GRAPHIC-SVB, Signature Bank are first bank failures since 2020 GRAPHIC-Credit Suisse goes off piste GRAPHIC-Credit Suisse revamp GRAPHIC-Banking worries send US markets on dizzying ride SCENARIOS-What is next for Credit Suisse after cash lifeline? TIMELINE-How Credit Suisse has evolved over 167 years EXPLAINER- Credit Suisse: How did it get to crisis point? ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Compiled by Lincoln Feast)

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