This weekend is going to be very special for Credit Suisse of Switzerland. What will be the future of Credit Suisse which is already facing cash crunch? What is the planning of the board of Union Bank of Switzerland, everything will be known here.
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This weekend is going to be special for Credit Suisse of Switzerland facing cash crunch. Credit Suisse’s Chief Financial Officer Dixit Joshi is going to have an important meeting with his team on the weekend regarding what will be the future of the financial group. At the same time, the board of Union Bank of Switzerland (UBS) will decide on the strategy to buy Credit Suisse, it is also going to be decided on the weekend itself.
Switzerland’s banking regulators may have arranged a loan of $ 30 billion to handle Credit Suisse. But sources say that the regulators want a merger of Credit Suisse and UBS. According to a report in the Financial Times, the boards of both UBS and Credit Suisse are going to hold separate meetings over the weekend.
Credit Suisse stock climbed
Only after this news, the share price of Credit Suisse registered a rise of 9 percent. The last two weeks have been turbulent in the banking sector at the global level. This crisis started with the sinking of America’s Silicon Valley Bank. Later it reached Europe with the help of Credit Suisse. The history of Credit Suisse Bank is also 167 years old.
UBS to buy Credit Suisse?
It has been said in the report of the Financial Times itself that YBS is planning to buy a stake in Credit Suisse or buy it outright. Credit Suisse has been assured of emergency funding, yet it has failed to garner investors’ confidence.
UBS is planning to buy Credit Suisse. But both the banks do not want to merge with each other. Although the regulators of Switzerland are in this favor, they cannot force the banks to do so because they do not have the power to do so.
Credit Suisse’s growing crisis can be gauged from the fact that major banks like Societe Generale and Deutsche Bank have banned transactions with it or its shares for the time being.