The stock of Credit Suisse continues to plummet despite moves by the Swiss central bank to calm the waters, waters that are infested with financial sharks ready to buy the bank.
Credit Suisse drops by a further 8% on the stock market and the shares go to 1.83 Swiss francs, amid this backdrop come several buying proposals from both the Crypto and classic Finance worlds.
Credit Suisse plummets with its stock
Over the past week, Switzerland’s largest bank has taken center stage as a result of contagion from the overseas banking crisis.
A number of major US banks have failed, and the government and Federal Reserve have been forced to intervene with measures never before taken.
Among the measures announced was the historic one of the Fed’s protection of 100% of investments and the establishment of a two trillion US dollar fund.
Unprecedented measures were also taken by the Swiss central bank, which allocated a credit opening like never before and a plan for the bank’s corporate reorganization.
Despite everything that has been done and despite the fact that the reasons for Credit Suisse’s crisis are containable and exogenous from the US banking crisis, the institution’s shares have encountered a downward spiral.
Over the past week the stock has lost 26%, 8 % in the last trading session on the stock exchange.
As the stock weakened back to 1.83 Swiss francs, proposals for a takeover also arrived.
UBS wins in the end
Another proposal had also come from classical finance and this time from UBS.
The financial giant goes so far as to offer two billion to buy Credit Suisse, one of the largest purchase proposals ever made for banks of this size.
Credit Suisse’s eternal rival UBS had made it clear that the proposal was too low and so a negotiation was born that saw UBS seal a 3 billion deal.
Behind UBS are also BlackRock with a 5.23% stake, Dodge & Cox International Stock Fund with 3.02%, Massachusetts Financial Services Company with 3.01%, Artisan Partners with 3.15q and Norges Bank with 3.01%.
The flash deal came just over the weekend to be ready for the opening of the markets, to date the world’s largest bank is born.
The deal was welcomed by Alain Berset, president of the confederation as the best solution to restore confidence among shareholders and investors since ten thousand jobs were at risk in addition to capital.
In addition to the 3 billion Swiss francs from UBS, the central bank opened an ad hoc credit line of 100 billion francs for the operation.
The news was also welcomed in the United States of America where the US Treasury and the Fed applauded the operation in a note.
The European central bank, which is far more contiguous in economic terms to those overseas, welcomed it.
President Christine Lagarde said the operation was:
“decisive to restore orderly market conditions and ensure financial stability.”