Two days after UBS agreed to spend $3.25bn to rescue its rival Credit Suisse, executives have started trying to move past the risks and sell investors on the benefits of the shotgun marriage. Chief executive Ralph Hamers told the Financial Times that the deal was “not simply about bringing two companies together” but about “how
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Hours after Swiss authorities pushed Credit Suisse into merging with its local rival UBS, CS leaders emailed staff. Don’t worry, previously scheduled bonuses and raises will go ahead, chair Axel Lehmann and chief executive Ulrich Körner wrote. This comes on top of news that Silicon Valley Bank CEO Greg Becker sold nearly $30mn in shares
Green Day, the cult 90s band, was named after its members’ enjoyment of pot. A green day in California was apparently a day spent lazing around smoking dope. The UK government is planning its own Green Day. This involves less marijuana (presumably) and more details on the UK’s plans to get to net zero. But
Taiwan’s military is prepared for any Chinese military threats during President Tsai Ing-wen’s upcoming overseas travel, vice defence minister Po Horng-huei said Wednesday. Tsai is due to start a 10-day trip on March 29 to diplomatic allies Guatemala and Belize, as well as to the US. Washington on Tuesday called on China not to use
Ministers have delayed plans to raise the state pension age to 68 amid falling life expectancy in the UK and warnings from Tory MPs that the move could provoke a backlash from middle-aged voters. The state pension age, currently 66, is due to increase to 68 after 2044. The government wanted to bring this forward
UBS is set to enter talks with Michael Klein to unwind a deal that would have seen the Wall Street dealmaker take control of much of Credit Suisse’s investment bank, according to people with direct knowledge of the matter. The negotiations, coming days after UBS was forced to buy its Swiss rival for $3.25bn, underline
Businesses have been encouraged to pay more into their employees’ pension pots in a move to meet a shortfall in retirement savings. The Living Wage Foundation, a charity that campaigns for fair pay, launched a new “living pension employer” standard on Tuesday in a move to increase employer pension contributions from 3 per cent of
UK chancellor Jeremy Hunt has said that the Bank of England should remain focused on taming “dangerously high” inflation, despite the strain placed on the global banking sector by rising interest rates. Data to be published on Wednesday is expected to show UK inflation at close to 10 per cent, and Hunt on Tuesday said
The Swiss government has banned Credit Suisse from paying deferred bonuses awarded before 2022 in a move that has sparked more upset from staff at the failed bank. The federal finance ministry said on Tuesday it had imposed “remuneration-related measures” on Credit Suisse as a result of the use of taxpayer funds to facilitate its
Wealth management is a product as emblematic of Switzerland as Toblerone. The chocolate is losing its emblem of the Matterhorn mountain as a result of offshoring. Swiss authorities do not want the branding of wealth management to weaken too. That is one reason they have pushed struggling Credit Suisse into a shotgun wedding with larger
As Credit Suisse entered weekend crisis talks that would end in its forced takeover, a group of its bankers embarked on a different sort of survival challenge: an outdoor adventure trip that they were filming for Bear Grylls. The executives spent Friday night on a camping retreat in Sai Kung, a picturesque town in Hong
Janet Yellen will signal further US government backing for deposits at smaller American banks if needed, a shift that seeks to protect parts of the country’s banking system struggling in the recent financial turmoil. Amid mounting evidence that panicked depositors are pulling savings out of regional banks, the US Treasury secretary will say guarantees offered
First Republic Bank shares rebounded on Tuesday after US Treasury secretary Janet Yellen was expected to signal that a government backstop for smaller banks was at the ready if required. First Republic shares surged more 30 per cent in opening trade on Tuesday, paring some of the New York-based bank’s recent losses. First Republic is
Boris Johnson didn’t start the fire. It was Theresa May, his predecessor as UK prime minister, who embarked on a harder Brexit than a close referendum result seemed to warrant. It was May who gave some bellicose advisers the run of Downing Street. It was May who equivocated when High Court judges were under tabloid
The wipeout of $17bn of Credit Suisse bonds has sparked panic among rich Asian investors who had loaded up on the risky bank debt. Under the terms of the UBS takeover of Credit Suisse, orchestrated by the Swiss government on Sunday, Credit Suisse’s additional tier 1 bonds were written down to zero while shareholders received
London’s Metropolitan police is guilty of “institutional racism, misogyny and homophobia” and should be broken up if it cannot effect a complete overhaul, according to one of the most damning ever reviews of a British police force. Baroness Louise Casey was commissioned by the Met to investigate the culture within Britain’s largest police force after
Good morning. Louise Casey’s independent review of the Metropolitan Police’s culture and standards makes grim but predictable reading. It’s a familiar story for the UK’s largest police force, but it may well be different this time. Ill Met “Weary” is police slang to refer to “a woman who complains about the behaviours of male colleagues,
European equities markets closed higher on Monday, with gains for many of the region’s banking stocks. The Stoxx 600 closed 1 per cent higher, while Germany’s Dax added 1.1 per cent and France’s Cac 40 climbed 1.3 per cent. London’s FTSE 100 rose 0.9 per cent. The Euro Stoxx Banks index was up 1.3 per
UBS’s rescue of Credit Suisse is expected to result in tens of thousands of job cuts, with Switzerland’s financial sector already bracing for a heavy hit from the contentious takeover. Credit Suisse’s domestic business and its investment bank, which collectively employ more than 30,000 staff, are expected to bear the brunt of the cuts, according
Federal Deposit Insurance Corporation officials were told in mid-January that Signature Bank, a New York City-based lender with about $90bn in deposits, was in trouble. A letter from a short seller, who stood to make money if Signature’s share price fell, warned that the bank lacked basic controls. One example: Signature in April 2020 made
Asian equities pushed higher with European stocks set to follow on Tuesday morning as investors assessed the risk of contagion in the financial system after the takeover of Credit Suisse. Hong Kong’s Hang Seng index added 0.8 per cent and China’s CSI 300 gained 1 per cent. South Korea’s Kospi and Australia’s S&P/ASX 200 added