© Reuters. Customers wait in line outside a branch of Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS / Brian Snyder
(Reuters) – On Saturday, UBS AG was considering a takeover of Swiss peer-to-peer firm Credit Suisse, sources said, a move that could allay fears that an unfolding crisis could could destabilize the global banking system.
EVOLUTION
* UBS’ takeover of Credit Suiss could prompt the Swiss government to offer a guarantee against the risks involved, two people with knowledge of the matter said on Saturday.
*Both banks’ boards have been set to meet separately over the weekend, with a source saying that Swiss regulators are encouraging the pair to merge but both banks are reluctant to do so. so.
* At least four major banks, including Societe Generale (OTC:) and Deutsche Bank (ETR:), is restricting new transactions involving Credit Suisse or its securities, five sources told Reuters.
* US investment giant BlackRock (NYSE:) has denied a Financial Times report that it is engaged in a rival bid to buy all or part of Credit Suisse.
* ECB Governing Board member Pierre Wunsch does not expect a repeat of the 2008 financial crisis despite the chaos caused by the collapse of the Silicon Valley Bank, arguing that European banks must comply under stricter rules than U.S. regional banks.
* Goldman Sachs (NYSE:NYSE) has cut its European bank debt risk recommendation from excessive to neutral, arguing that a lack of clarity on Credit Suisse’s future path will put pressure on the industry as a whole.
* SVB Financial Group has filed for court-supervised reorganization under Chapter 11 bankruptcy protection in search of a buyer for its assets, days after regulators took over the application. Their former location was Silicon Valley Bank (SVB).
* US Federal Deposit Insurance Corporation (FDIC) is considering steps to facilitate takeover signature bank (NASDAQ:) and Silicon Valley Bank, a source told Reuters.
* Moody’s (NYSE:) downgraded Bank of the First Republic debt of (NYSE:). Prior to the announcement, the bank’s shares were down nearly 33%, having written off 80% in the past 10 sessions, despite a rescue package with $30 billion in deposits injected by major US banks.
* US President Joe Biden called on Congress to give banking regulators more power.
* A senior official at the People’s Bank of China said the collapse of SVB showed how rapid monetary policy changes have spillover effects, state-run newspaper Shanghai Securities News news.
MARKET
* Investor sentiment remained fragile on Friday, keeping global stocks under pressure while gold posted its biggest one-week gain in three years. The dollar slipped and Treasury yields fell.
* As worries about banks reeling, investors are looking for protection against a market crash.
