"Mass layoffs expected after UBS takes over Credit Suisse"
The emergency merger between Credit Suisse and UBS, forced through by the Swiss government, has raised concerns of "tens of thousands" of job losses at the newly formed entity, with bankers already scrambling to contact recruiters.
Credit Suisse CEO Ulrich Korner and chair Alex Lehmann have told staff that no decisions on potential layoffs have been made.
However, sources at Credit Suisse told The Guardian that investment bankers are the one group most likely to face job cuts across areas, estimating as many as 20% of workers could be lost.
The Swiss Bank Employees' Association has described the takeover as threatening job cuts on a scale that the banking sector cannot absorb. FTSE 100 falls following Credit Suisse's sale to UBS
The FTSE 100 opens lower after Swiss rival UBS takes on struggling bank Credit Suisse, leading to banks taking a battering globally, impacting markets in Asia and the UK. Concerns regarding bond-holding values and the impact of the newly merged bank on the Swiss economy have contributed to an uncertain start to the week. Credit Suisse bond wipeout shocks bondholders and shakes banking system
The state-backed takeover of Credit Suisse by UBS over the weekend wiped out $17bn worth of Additional Tier 1 (AT1) bonds, creating fear in the $275bn AT1 market.
AT1 bonds are a type of debt that can be converted into equity for banks that run into trouble, and at present, the decision to wipe out Credit Suisse's AT1 bonds is the largest loss in the AT1 market since its creation following the financial crisis.
The decision contradicts the belief that in such a scenario shareholders would take a larger hit than bond investors.
Investors in other European AT1 bonds saw a sharp decline in the asset as a result, but the write-off is not believed to be widespread as AT1 bonds are considered somewhat niche. Central banks face difficult choice amid global banking crisis
The Bank of England and US Federal Reserve, among other major central banks, are facing the difficult choice of whether to increase interest rates or maintain the status quo amidst global banking trouble.
While the European Central Bank announced a 50 basis point rise in its interest rates in February, it remains unclear whether the Bank of England will follow suit or maintain its current interest rates to keep inflation under control.
Similarly, the US Federal Reserve is expected to announce a 25 basis point rise in interest rates later this month despite growing concerns about the impact of recent banking sector turmoil. Credit Suisse Shares Plummet After Saudi Bank Backs Out
Shares of Credit Suisse have fallen sharply following the announcement that its biggest shareholder, Saudi National Bank, will not inject more money into the bank due to regulatory restrictions.
This news has caused an automatic suspension in trading of Credit Suisse shares on the Swiss market and impacted other European banks as well. UBS takes over Credit Suisse in a $3.2 billion deal
After Swiss authorities announced that UBS would take over Credit Suisse, Asian markets are expected to be volatile on Monday.
The forced merger is viewed by investors as an attempt to ease the strain on the global banking system and prevent a crisis.
The deal comes in the wake of significant turbulence in the banking sector, including two U.S. bank failures and the implosion of Credit Suisse which has led to unprecedented volatility in interest rates and bond markets. Global Central Banks take action to boost US dollar flow
The world's major central banks have taken co-ordinated action to enhance liquidity in the global banking system amidst recent financial instability.
The program will offer US dollar liquidity "swap lines" daily between the US Federal Reserve, Bank of England, Bank of Japan, Bank of Canada, Swiss National Bank, and the European Central Bank. Federal Reserve faces conflicting challenges as it considers interest rates
The Federal Reserve is currently meeting to discuss interest rates amidst the threat of persistently high inflation and a nervous banking system.
Most economists expect a quarter-point increase to be announced to signal the Fed's efforts to reduce inflation.
However, the recent collapse of two major banks has prompted concerns regarding the stability of the banking sector, further complicating the Fed's decision. UBS to acquire Credit Suisse in historic deal, central banks announce coordinated liquidity measures
UBS has agreed to acquire Credit Suisse for CHF 3 billion, backed by a government guarantee, as part of a rescue deal orchestrated by Swiss authorities to prevent further market chaos.
The move has caused market confidence to rise, boosted by coordinated measures by major central banks to increase emergency dollar liquidity in the financial system.
However, despite the relief rally in Asia, potential dangers remain, including contagion and the fragile state of US banks.
Take Five: Everything Everywhere All at Once
The U.S. Federal Reserve meets after global banking turmoil has left deep scars on financial markets - with the risk of more to come.
Bank shares volatile after Credit Suisse takeover
First Republic Bank crisis raises concerns for potential banking crisis
Shares in European banks regain ground but are still under pressure amid fears of a wider banking crisis.
The lending crisis that developed at First Republic Bank has raised concerns among investors about a potential banking crisis.
Several large banks provided a $30 billion lifeline to the troubled regional lender, but this was unable to calm the nerves of investors, causing a widespread bank selloff.
The latest bank to fall victim to the crisis is First Republic Bank, with their shares dropping by as much as 21% in early trading after the bank suspended its dividend payout. Wall Street Banks Rescue First Republic Bank with $30 Billion Deposit
A consortium of leading US banks, comprising JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley and others, have initiated a bailout and deposited $30 billion into First Republic Bank, an act in which the government also encouraged.
The San Francisco-based bank was on the brink of collapse after the implosions of Silicon Valley Bank and Signature Bank over the past week triggered a panic in the banking sector.
The bailout marks an unprecedented show of support for, and indication that First Republic's difficulties do not reflect deeper systematic trouble. Virgin Orbit Pauses Operations and Furloughs Staff Amid Financial Pressure
The Richard Branson-founded satellite launch firm, Virgin Orbit has paused all its operations and furloughed most of its employees amid financial pressure and a struggle to attract investors.
The announcement comes after the company's failure to send a satellite into space in January, which led to a decline in its operations.
The company's chief executive, Dan Hart, addressed the employees and said that the furlough was intended to buy Virgin Orbit time to finalise a new investment plan to help pull the company out of its financial woes.
Reports from different sources use slightly different language to describe the nature of the pause, some suggesting that all or almost all the staff is furloughed while others mentioned, "almost all" or "nearly all" indicating that a small, skeleton workforce remains. Credit Suisse borrowing revelation intensifies fear of banking crisis
Credit Suisse has announced that it will borrow up to 50 billion Swiss francs from the Swiss central bank to shore up its finances.
This has sparked heavy declines in Asian shares, as fears of a wider banking crisis increased.
The bank's share price fell 24% on Wednesday after it revealed "weakness" in its financial reporting.
Despite the steep falls in Asian markets, European markets are expected to open higher. Silicon Valley Bank UK Pays Bonuses After HSBC Acquisition
Silicon Valley Bank UK paid millions of pounds in bonuses to its staff days after its acquisition by HSBC in a rescue deal.
The acquisition occurred after the California-based bank collapsed, sparking concerns in the banking industry.
The new owner, HSBC, approved the payouts, describing the bonus pool as "modest", ranging from £15m to £20m.
The bonus payment signaled HSBC's intention of retaining key staff and showed confidence in SVB UK's talent base.
The UK bank, which employs around 700 people, remains profitable. Banking Shares Slump Amid Fears of Financial Crisis
Shares in European and US banks have fallen sharply causing concerns of a new financial crisis, as regulators attempt to ease investor fears about the stability of banking giants like Credit Suisse.
Saudi National Bank, Credit Suisse's largest shareholder, has ruled out additional financial injections, leading to a 20% drop in its share price.
Credit Suisse, which is regarded as systemically important to the global financial system, was dealt a severe blow after its top investor withdrew additional funding due to regulatory limits on ownership. Credit Suisse secures emergency loan from Swiss National Bank
Credit Suisse has secured a $54 billion loan from the Swiss National Bank in a bid to shore up investor confidence and liquidity following a significant drop in its share price on Wednesday.
The bank plans to use the additional liquidity to create a "simpler and more focused bank".
The announcement came after a crisis of confidence in the global banking system led to fears of a broader financial crisis.
Bonds were seen as a safe haven – but they are central to this bank crisis | Toby Nangle
Credit Suisse's stability in question
Troubles at Silicon Valley Bank and Credit Suisse are partly due to impact of rising interest rates
The Credit Suisse Group, Switzerland's second-largest bank, was hit with a sharp share price decline last Wednesday, after reporting material weaknesses in its financial reporting controls and as its largest shareholder demurred from injecting more funds for regulatory reasons.
These industry shocks have increased concerns over the general stability of the banking system in Europe and the United States.
Analysts believe that a quarter-point rate hike is possible tomorrow at the European Central Bank, despite the earlier expectation that rates would increase by one-half percentage point. Multi-billion Dollar Lifelines Shore Up Investor Confidence in Troubled Banks
Troubled banks in the US and Europe received multi-billion dollar lifelines on Friday, which boosted investor confidence and sentiment in the stock market.
Large US banks provided a $30bn deposit injection into First Republic Bank, which had been caught up in a widening crisis triggered by the collapse of two other mid-size US lenders over the past week.
Swiss bank Credit Suisse also secured an emergency central bank loan of up to $54bn to shore up its liquidity.
These measures went some way to calming panic about a global banking crisis.
Credit Suisse, UBS shares plunge after takeover announcement
UBS set to buy Credit Suisse in $1 billion deal
GENEVA (AP) — Shares of Credit Suisse plunged 63% in early trading Monday after the announcement that banking giant UBS would buy its troubled rival for almost $3.25 billion in a deal orchestrated by regulators to stave off further market-shaking turmoi
Swiss investment bank UBS is reportedly poised to acquire competitor Credit Suisse in a deal worth up to $1 billion, in a move which aims to stabilise the embattled finance industry amidst escalating fears of widespread economic fallout.
The Swiss government is expected to sidestep shareholders to accelerate the transaction before trading recommences on Monday.
Although some reports suggested Credit Suisse was unhappy with the deeply discounted offer, authorities are racing against time to shore up investor confidence in the financial sector, with Credit Suisse among the world's largest wealth managers. UBS examines possible takeover of Credit Suisse, Swiss regulators urge merger
UBS is reportedly considering taking over Credit Suisse's Swiss business, with the Swiss government offering guarantees against the risks involved.
However, both UBS and Switzerland's financial regulator FINMA have declined to comment on the matter.
Meanwhile, Credit Suisse is reportedly under pressure to pursue a deal with UBS, as other banks become cautious in their dealings with the troubled institution. US banks come to rescue First Republic amidst global financial crisis
Several US banks, including JPMorgan Chase, Morgan Stanley, and Citigroup, poured $30 billion into the ailing First Republic Bank amid a crisis that started with the collapse of Silicon Valley Bank last week.
The rescue package initiated by US Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and JPMorgan Chase CEO Jamie Dimon prevented the lender from suffering the same fate as the two other mid-size US banks that collapsed last week.
Even the Swiss lender Credit Suisse had to borrow up to $54b from the central bank due to the market turmoil.
Following this, the global banking industry is now being battled by a crisis, causing banking stocks worldwide to drop.