Credit Suisse Group AG is poised to join the historic ranks of finance giants selling at fire-sale prices in the grip of a market crisis, according to Bloomberg -- from $96 billion to around $3 billion.
None of the Midsize US banks Ask the FDIC to Insure Deposits for Two Years.
The emergency government-brokered deal over the weekend is a soft echoe of the 2008 banking crash as Wall Street preps for new volatility on Monday, as UBS Group AG looks to snap up the once-storied Swiss institution.
A reminder: During the Global Financial Crisis, JPMorgan Chase Co. paid about $240 million for Bear Stearns, an investment bank that once had a stock market value of $140 billion. As the credit downturn got worse, more takeovers and bailouts followed.
In the US, regulators are trying to sell off parts of the Silicon Valley Bank, whose failure sent the market values of other regional banks plunging. In Europe on Sunday, UBS agreed to take over Credit Suisse in an all-stock deal, which is a steep discount to the 7.4 billion francs $8 billion it was worth at the close of business Friday.
With the fallout from rising interest rates threatening new turmoil, here is a reminder of past bailouts and distressed mergers and acquisitions in the financial world.
None of the Bank of America Corp. agreed to acquire Merrill Lynch Co. for about $50 billion after the credit crisis claimed one of America's oldest financial companies. Merrill Lynch was battered by several billion dollars in losses and write-downs from subprime-mortgage contaminated securities. BofA's offer was 70% less than its peak share price in 2007.
All ChatGPT Advances Are Moving So Fast Regulators Can't Keep Up With It.