Credit Suisse lost US$68B in assets last quarter amid banking challenges
Credit Suisse said on Monday that 61 billion Swiss francs in assets left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS Group in rescuing its rival.
Credit Suisse’s ability to generate revenue appeared to be so damaged that “the deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced,” London-based analyst Thomas Hallett at KBW said in a note to clients. Clients rapidly started pulling money from scandal-plagued Credit Suisse after it was ensnared in market turmoil unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.In the rescue package rushed together by Swiss authorities, UBS agreed to take over Credit Suisse for 3 billion francs in stock and assume up to five billion francs in losses. The deal also includes 200 billion francs in state financial guarantees.
– Private clients pulled 6.9 billion francs from the bank’s Swiss arm amid questions over the future of the Credit Suisse unit in Switzerland
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