UBS Nears Acquisition of Credit Suisse Amid Efforts to Stabilize Banking Sector

Sources indicate that UBS is close to finalizing a deal to acquire Credit Suisse, as Swiss and global authorities work to mitigate banking sector contagion and restore confidence in the financial system. The agreement could be reached as early as Sunday.

The Swiss National Bank Swiss National Bank The Swiss National Bank (SNB) is the central banking authority of Switzerland. It represents the country’s monetary policy as an independent central bank and acts in accordance with the interests of the country as a whole. The SNB’s primary goal is to ensure price stability, while taking due account of economic developments. In doing so, the central bank creates an appropriate environment for economic growth.One of the main functions of the bank is to ensure and implement monetary policy. The SN The Swiss National Bank (SNB) is the central banking authority of Switzerland. It represents the country’s monetary policy as an independent central bank and acts in accordance with the interests of the country as a whole. The SNB’s primary goal is to ensure price stability, while taking due account of economic developments. In doing so, the central bank creates an appropriate environment for economic growth.One of the main functions of the bank is to ensure and implement monetary policy. The SN Read this Term (SNB) provided a $50 billion lifeline earlier this week, although Credit Suisse's stock price, following a brief rally, declined once more. US shares closed on Friday at $2.01, marking a 24.44% drop for the week, with the week's lowest price at $1.75.

Meanwhile, in the US, Silicon Valley Bank filed for Chapter 11 bankruptcy Bankruptcy Bankruptcy or insolvency is a legal designation occurring when a company or entity are unable to repay debts. While associated mainly with business, individuals can also declare bankruptcy. Persons or companies can voluntarily declare bankruptcy, involving filings with courts by their own accord. This differs from involuntary bankruptcy in which debtors force individuals or companies into bankruptcy by filing a petition with the courts. Bankruptcy can only occur with a court filing. Of note, Bankruptcy or insolvency is a legal designation occurring when a company or entity are unable to repay debts. While associated mainly with business, individuals can also declare bankruptcy. Persons or companies can voluntarily declare bankruptcy, involving filings with courts by their own accord. This differs from involuntary bankruptcy in which debtors force individuals or companies into bankruptcy by filing a petition with the courts. Bankruptcy can only occur with a court filing. Of note, Read this Term on Friday, one week after regulators shuttered the bank and guaranteed all depositor funds. Signature Bank was closed by regulators last weekend as well, after losing billions in withdrawals due to contagion from the collapse of Silicon Valley Bank.

Hedge fund manager Bill Ackman tweeted on Friday:

A source familiar with the matter denied BofA interest in Signature.

First Republic's stock price continued its downward trend on Friday, despite a consortium of banks depositing $30 billion into the bank just a day earlier. After hitting a low of $17.53 on Wednesday, the stock rallied to a high of $40 on Thursday. However, it reversed course on Friday, closing at $23.03, a 14.07% decrease. In after-hours trading, the price slid even further to a low of $19.49. Moody's downgrades First Republic Bank to B2 from Baa1.