How Scandal and Mistrust Ended Credit Suisse's 166-Year History
NDTV
After tense talks over the weekend, UBS Group AG agreed to buy Credit Suisse in an all-share deal for about $3.25 billion.
Credit Suisse Group AG, once one of the stalwarts of the global financial system, is no more.
After tense talks over the weekend, UBS Group AG agreed to buy Credit Suisse in an all-share deal for about $3.25 billion, less than the market value of troubled US lender First Republic Bank. The government-brokered sale marks the Swiss bank's final fall from grace, succumbing to a crisis of confidence that threatened to spread to global financial markets.
For 166 years, Credit Suisse helped position Switzerland as a linchpin of international finance and went toe-to-toe with Wall Street titans before a steady drumbeat of scandals, legal issues and management upheaval undermined investor confidence. While the decay was years in the making, the end came quickly.
In the aftermath of the collapse of Silicon Valley Bank last weekend, long-suffering Credit Suisse quickly became a focal point of concern. After top shareholder Saudi National Bank told Bloomberg Television on Wednesday that it would "absolutely not" invest more in the lender, a rout was on.
