Axel Lehmann, chairman of Credit Suisse Group AG, Colm Kelleher, chairman of UBS Group AG, Karin Keller-Sutter, Switzerland’s finance minister, Alain Berset, Switzerland’s president, Thomas Jordan, president of the Swiss National Bank (SNB), Marlene Amstad, chairperson of the Swiss Financial Market Supervisory Authority (FINMA), left to right, during a news conference in Bern, Switzerland, on Sunday, March 19, 2023.
Pascal Mora | Bloomberg | Getty Images
Following Credit Suisse‘s “emergency rescue” by rival UBS, Swiss authorities placed a heavy emphasis on the role of U.S. regional banking collapses in pushing the stricken Swiss lender to the brink.
Credit Suisse’s most recent share price plunge began with the collapse of U.S.-based Silicon Valley Bank, but was compounded when the 167-year-old Swiss institution announced that it had found “material weaknesses” in its financial reporting procedures.
Confirmation from top investor the Saudi National Bank that it could not provide any more funding to Credit Suisse then provided the final blow, prompting the announcement of a loan of up to 50 billion Swiss francs ($54.2 billion) from the Swiss National Bank. By that point, Credit Suisse shares were down by around 98% from their all-time high in April 2007.
The loan intervention ultimately failed to restore investor confidence and Swiss authorities brokered the bank’s emergency sale to UBS for 3 billion Swiss francs over the weekend.
“The latest developments that emanated from the banks in the U.S. hit us at the most unfavorable moment. One time, like last year, we were able to overcome the deep market uncertainty, but not this second time,” Credit Suisse Chairman Axel Lehmann told a press conference on Sunday night.
“The accelerating loss of confidence and the escalation over the last few days have made it clear that Credit Suisse can no longer exist in its current form. We are happy to have found a solution, which I’m convinced will bring lasting stability and security…
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