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The headlines about Credit Suisse grappling with the crisis do not stop. After the share price hits an all-time low, former banker Konrad Hummler (70) doesn’t believe Credit Suisse can be bailed out either. “The international credit markets are reacting very negatively,” the former partner of Swiss bank Wegelin told the Neue Zürcher Zeitung. Founded in 1741, Wegelin Bank was the oldest bank in Switzerland until it was dissolved in 2012.
Hummler says once the trust is gone, it’s gone. “Either CS will be processed properly, there are standardized methods that guarantee that healthy parts of the bank can be recovered. Or the settlement of CS is transferred to another large bank and Finma and the government take over the guarantee without an if and but.
Speculation rises over UBS acquisition
On Wednesday evening, the financial market supervisory agency Finma and the Swiss National Bank (SNB) announced that they will provide liquidity to Credit Suisse if needed. Just a few hours later, CS reported its needs and borrowed up to CHF 50 billion from SNB to provide liquidity.
Billions of dollars in aid have done little to placate investors’ concerns about the ailing big bank. The CS share price fell again on Friday, further fueling speculation about the split of Switzerland’s second-largest financial institution. The “Financial Times” reported on Friday evening that UBS and CS were said to be in takeover talks. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
