Although Credit Suisse (Credit Suisse) received liquidity support from the Swiss National Bank, its stock price rose sharply on the 16th, but its operating problems are still unresolved, and its stock price continued to fall yesterday (17th). JPMorgan Chase reported three endings for Credit Suisse, and Credit Suisse is most likely to end up being acquired by rival UBS.
Comprehensive foreign media reports, JPMorgan Chase analyst Kian Abouhossein pointed out in the report that the problem of Credit Suisse is no longer the capital situation, but the gradual erosion of its investment banking strategy and franchise model, impacting investor confidence, “Maintaining the status quo is no longer an option”.
The report continued that Credit Suisse is most likely to be acquired by UBS. In view of the market concentration of the two companies, it is possible to go public or split the banking business worth 10 billion Swiss francs after the acquisition.
UBS mentioned two other options, one is that the Swiss government guarantees or injects capital in full, allowing Credit Suisse to restructure, but this may dilute the interests of existing shareholders. The other would require Credit Suisse to shut down its investment banking business itself, but that may not ease market concerns.
According to sources, the Swiss government originally intended to promote the merger of the two companies, but both parties opposed the “forced merger”. The company’s borrowing restructuring, trying to turn the tide.
(Cai Zonglun, China Times News Network)
further reading
Li Zhengguo: 150% liquidity, not afraid of Credit Suisse crisis
Swiss-led merger with Credit Suisse and UBS refused to “send it as a pile”
U.S. shareholder sues Credit Suisse for cover
The post Credit Suisse crisis? The exposure of 3 possible endings appeared first on Business Times.
