Chancery Court Poorly Chose to Do Business With Credit Suisse, Which Started the Banking Meltdown and Ultimately Had to Be Bailed Out by UBS and Swiss authorities
The Chancery Court made an awful choice in keeping sorid company with Credit Suisse, which had to be bailed out this week after severe financial trouble and even being found guilty in a cocaine cash laundering case.
Truly distasteful company our once-proud Chancery Court keeps. This is a sad day for the court, folks.
See the Reuters story below and send your feedback. It’s always welcome and appreciated.
JUDSON Bennett–Coastal Network
Central banks try to calm markets after UBS deal to buy Credit Suisse
and John O’Donnell
March 19 (Reuters) – Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG (UBSG.S) to buy rival Credit Suisse Group AG (CSGN.S) in a historic deal.
UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023.
“It’s a historic day in Switzerland, and a day frankly, we hoped, would not come,” UBS Chair Colm Kelleher told analysts on a conference call. “I would like to make it clear that while we did not initiate discussions, we believe that this transaction is financially attractive for UBS shareholders,” Kelleher said.
UBS CEO Ralph Hamers said there were still many details to be worked through.
“I know that there must be still questions that we have not been able to answer,” he said. “And I understand that and I even want to apologize for it.”
In a global response not seen since the height of the pandemic, the Fed said it had joined with central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The ECB vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” for restoring calm.
Fed Chair Jerome Powell and U.S. Treasury Secretary Janet Yellen welcomed the announcement by the Swiss authorities. The Bank of England also praised the Swiss.
“The greater risk environment for financials leads to husbanding of capital and risk-taking, less and more conservative investing and lending, and inevitably, lower growth,” said Lloyd Blankfein, former chairman and CEO of Goldman Sachs Group Inc (GS.N).
“While some banks have been hung up by poorly managed, concentrated risk, the overall banking system is extremely well capitalized and substantially more tightly regulated than in prior challenging times.”
The Swiss banking marriage follows efforts in Europe and the United States to support the sector since the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.