Merger Between Credit Suisse Bank and UBS Group Reportedly on the Cards
- Combining Switzerland’s two major banks might create a gigantic new financial powerhouse.
- UBS’s $1.1 trillion in assets stands in stark contrast to Credit Suisse’s $575 billion.
Recent sources indicated that the historic merger deal between Credit Suisse and UBS Group would be concluded as early as Saturday evening. The Swiss National Bank and the Swiss Financial Market Supervisory Authority FINMA, Switzerland’s central bank and financial regulator, reportedly saw this merger as their sole option to avert the collapse of Credit Suisse.
Combining Switzerland’s two major banks like this might create a gigantic new financial powerhouse. The crypto market has benefited from the financial crisis that started with the failure of Silicon Valley Bank.
New information from Financial Times suggests that a meeting between the two banks’ boards is planned for this coming weekend. This means that the deal will be structured to comply with laws in the United States, the United Kingdom, and Switzerland. UBS’s $1.1 trillion in assets stands in stark contrast to Credit Suisse’s $575 billion.
Crypto Market Rallies
The loss of faith in the Swiss bank had a significant impact on European bank shares, and fresh worries of Silicon Valley Bank-style disasters among American institutions developed.
Credit Suisse’s share price decreased after the recent bank failure, therefore the Swiss Central Bank extended the bank an emergency credit line of $54 billion. Unfortunately, the credit line had little effect on investor confidence, and the bank’s stock price continued to plummet.
Ahead of next week’s crucial Federal Open Market Committee (FOMC) meeting, the price of Bitcoin hit a 10-month high of $27,700 on Saturday. Moreover, Ethereum as well as other altcoins also rallied amid this banking chaos.
