Fate of Credit Suisse can be decided this Sunday (19)

The fate of Credit Suisse can be decided this Sunday (19) after a torrid week for the second largest bank of Suíça.

Local media reported that the Swiss cabinet met for a crisis meeting at 5:00 p.m., local time, this Saturday (18), at the Ministry of Finance, to discuss the future of the bank, while reports circulated of a possible acquisition of the institution in difficulties by his biggest swiss rival.

Investors and clients have withdrawn their money from Credit Suisse in recent days, due to various turbulence in the global banking sector following the collapse of two American creditors.

The bank’s assets will lose 25% over the week, despite an emergency loan of US$ 54 billion from the Swiss National Bank.

The price is two financial contracts intended to protect investors against possible losses in their titles shot to record levels. More than US$ 450 million were withdrawn from European and American funds managed by the bank between the second and fourth fairs, second to Morningstar.

The taboo of salvation of the Swiss central bank, announced on the night of the fourth fair (15) after the shares fell for a new low record, only held Credit Suisse for some time.

Reuters and the Financial Times, citing people familiar with the matter, will report that Swiss regulators are asking banks to reach an agreement before opening two markets at the second fair (20) to strengthen confidence in the country’s banking system.

The Financial Times says that the boards of UBS and Credit Suisse must meet separately on weekends. Both refused to comment to Reuters.

BlackRock, which owns 4% of Credit Suisse, denied a separate report in the Financial Times that it was preparing an alternative offer for all or part of the embattled bank.

“BlackRock is not participating in any flat way to acquire all or part of Credit Suisse and is not interested in doing it,” said a BlackRock spokesperson. CNN.

O Credit Suisse, which is among the 30 most important banks in the global financial system, has been on the bamba for years after a series of scandals, great losses and strategic errors.

Their shares fell 75% in the last 12 months, but the crisis of confidence increased rapidly this month.

The failure of Silicon Valley Bank (SVB) last week, the largest of a two-US creditor since the global financial crisis of 2008, led investors to flee from other players considered duds.

Then Credit Suisse dropped another bombshell. Publishing its annual report at the terça-feira, the 167-year-old bank acknowledges its “material weakness” in its financial reports, adding that it failed to adequately identify the potential risks for its financial statements.

The next day, its largest shareholder – or Saudi National Bank – made it clear that it would not inject more money into the bank, after spending US$ 1.5 billion last year for a stake of about 10%. Isso frightening the investors.

In a note at the fifth fair, JPMorgan bank analysts wrote that a takeover of UBS was the most probable.

UBS would likely separate the Swiss businesses from Credit Suisse, since the combined market share would represent close to 30% of the Swiss domestic banking market and would mean “much risk of market share concentration and control”, they would increase.