Credit Suisse meets to weigh options, under pressure to merge with UBS

Credit Suisse Group AG began a make-or-break weekend after some rivals grew cautious in their dealings with the bank as regulators urged it to pursue a deal with Swiss rival UBS AG. Credit Suisse Chief Financial Officer Dixit Joshi and his teams will hold meetings over the weekend to assess strategic scenarios for the bank, people with knowledge of the matter said on Friday. The 167-year-old bank is the biggest name ensnared in market turmoil unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank over the past week, forcing the Swiss bank to tap $54 billion in central bank funding. Swiss regulators are encouraging UBS and Credit Suisse to merge but neither bank wanted to do so, one source said. The regulators do not have the power to force the merger, the person said. The boards of UBS and Credit Suisse were expected to separately meet over the weekend, the Financial Times said, Credit Suisse shares jumped 9% in after-market trading following the FT report. Credit Suisse and UBS declined to comment. In the latest sign of its mounting troubles, at least four major banks, including Societe Generale SA and Deutsche Bank AG, have put restrictions on their trades involving Credit Suisse or its securities, five people with direct knowledge of the matter told Reuters. "The Swiss central bank stepping in was a necessary step to calm the flames, but it might not be sufficient to restore confidence in Credit Suisse, so there’s talk about more measures," said Frederique Carrier, head of investment strategy at RBC Wealth Management. Efforts to shore up Credit Suisse come as policymakers including the European Central Bank and U.S. President Joe Biden sought to reassure investors and depositors the global banking system is safe. But fears of broader troubles in the sector persist. Already this week, big U.S. banks provided a $30 billion lifeline for smaller lender First Republic, while U.S. banks altogether sought a record $153 billion in emergency liquidity from the Federal Reserve in recent days. This reflected "funding and liquidity strains on banks, driven by weakening depositor confidence," said ratings agency Moody's, which this week downgraded its outlook on the U.S. banking system to negative. In Washington, focus turned to greater oversight to ensure that banks - and their executives - are held accountable. Biden called on Congress to give regulators greater power over the banking sector, including imposing higher fines, clawing back funds and barring officials from failed banks. Some Democratic lawmakers asked regulators and the Justice Department to probe the role of Goldman Sachs in SVB's collapse, said the office of Representative Adam Schiff. MARKET TROUBLES LINGER Banking stocks globally have been battered since Silicon Valley Bank collapsed, raising questions about other weaknesses in the financial system. U.S. regional bank shares fell sharply on Friday and the S&P Banks index tumbled 4.6%, bringing its decline over the past two weeks to 21.5%, its worst two-week calendar loss since the COVID-19 pandemic shook markets in March 2020. First Republic Bank ended Friday down 32.8%, bringing its loss over the last 10 sessions to more than 80%. Moody's downgraded the bank's debt rating after the market close. While support from some of the biggest names in U.S. banking prevented First Republic's collapse this week, investors were startled disclosures on its cash position and how much emergency liquidity it needed. SVB Financial Group filed for bankruptcy court-supervised reorganisation, days after regulators took over its Silicon Valley Bank unit. Regulators had asked banks interested in buying SVB and Signature Bank to submit bids by Friday, people familiar with the matter said. Regulators are considering retaining ownership of securities owned by Signature and SVB to allow smaller banks to participate in auctions for the collapsed lenders, a source familiar with the matter said. (Reporting by Reuters bureaus; Writing by Lincoln Feast; Editing by William Mallard)

Credit Suisse meets to weigh options, under pressure to merge with UBS

DISCOVER MORE

European banks default-risk indicator jumps, AT1 bonds fall

Rapid wage growth to prolong high euro zone inflation: ECB's Nagel

India cenbank has 'enough valid reasons' to pause rate hikes in April – ISEC PD

The Central Bank of Bahrain raises key interest rate by 25 basis points

Bank ABC, Bahrain signs deals for core banking overhaul

Global bank failures unlikely to negatively affect Philippines - NEDA

The Central Bank of Jordan to increase interest rate by 25 basis points as of Sunday

BoE's Bailey urges firms to look at inflation forecasts when setting prices

GCC central banks track US Fed move; hike key rates by 25bps

Dubai's Meraas to build new residential towers in Design District

UAE exchange firm Al Ansari upsizes IPO on strong investor demand

VIDEO: LSE-listing will facilitate more funding opportunities for us, Dar Global CEO

Dubai’s Emirates to add value, support Air India – Tim Clark

Dealmakers expect pick-up in activity despite 'brick wall' facing M&A

UK investment banks Cenkos and finnCap to merge

France's Sanofi to acquire US-based Provention Bio for $2.9bln

Middle East M&A activity surges as wealth funds use deals to build local champions

CBO approves merger of HSBC Bank Oman with Sohar International Bank

LATEST VIDEO

VIDEO: LSE-listing will facilitate more funding opportunities for us, Dar Global CEO

ZAWYA COVERAGE

Will gold face more downside or upside after Fed's rate hike?

Kenya signs $250mln deal with UK to boost food production

PODCAST: IFC is ready to back governments privatisation plans with capital

UAE's Presight AI to debut on Abu Dhabi Securities Exchange next week

France's Macron says he will not yield to violence after demonstrations against pensions reform

Euro zone banks resilient, ECB can provide liquidity if needed -Lagarde

China regulator touts achievements in managing bank risks amid contagion fears

Gold steadies, Fed pause bets brighten outlook

Indian police open investigation into London embassy protest

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE