Mar 19, 2023

UBS Acquisition of Credit Suisse “Only Option” to Prevent Collapse

Switzerland’s financial regulator and the Swiss National Bank (SNB) are reportedly in agreement that the only viable option to prevent a collapse in confidence in Credit Suisse is for the country’s largest bank, UBS, to acquire the investment bank. In order to make this possible, emergency measures are being put in place to bypass the usual Swiss regulations that require a six-week consultation period for shareholders.

The SNB and the Swiss Financial Market Supervisory Authority (FINMA) are working to reach a regulatory agreement by Saturday night, with three people familiar with the situation stating that UBS is the only viable option to prevent a collapse in confidence in Credit Suisse.

UBS has a total assets balance sheet of $1.1 trillion, while Credit Suisse has $575 billion. If the two banks merge, they would create one of the biggest global systemically important financial institutions in Europe. UBS intends to proceed with Credit Suisse’s plans to downsize its investment bank, with two of the people briefed on the situation stating that the combined entity will make up no more than a third of the merged group.

The SNB and FINMA released a joint statement on March 15 stating that Credit Suisse met the capital and liquidity requirements imposed on systemically important banks. The statement also noted that if necessary, the SNB would provide Credit Suisse with liquidity, as the bank had been affected by market reactions in recent days.

American investment company BlackRock also stated in a March 18 tweet that it “has no interest” in acquiring Credit Suisse.

With the emergency measures in place, the acquisition of Credit Suisse by UBS is set to be finalized before markets open on Monday. This comes as a relief to many in the web3 space, as the merger of the two Swiss banks is likely to have a positive impact on the crypto markets, as well as the NFT market.

The merger will also open up new opportunities for NFT marketing and promotion, as UBS and Credit Suisse have the financial resources to invest in NFTs and promote them on platforms like Twitter. UBS and Credit Suisse may even consider hiring a web3 agency or NFT marketing agency to help them promote their NFTs and increase their sales.

Overall, the merger of UBS and Credit Suisse is set to be a positive development for the web3 space, and will likely open up new opportunities for NFT marketing, promotion, and selling.

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