What’s Next for UBS After Rescue of Credit Suisse

WSJ What’s News

The Wall Street Journal

Daily News, News

4.1 • 4.2K Ratings

🗓️ 21 March 2023

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

A.M. Edition for March 21. Swiss lender UBS has one fewer rival and more clients among the world's wealthy after its whirlwind rescue of Credit Suisse. But it's also left holding Credit Suisse's legal baggage and bearing the weight of being an even more systemically important financial institution. Journal reporter Margot Patrick outlines the challenges and opportunities that could await UBS. Plus, WSJ editor Alex Frangos explains what investors are watching as the Fed kicks off a two-day policy meeting. Luke Vargas hosts. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Markets gain as investors look to the Fed's next rate decision.
0:09.6	Plus we'll weigh the challenges and opportunities awaiting UBS after its rescue of Credit Suisse.
0:16.4	So this may go down as one of the great deals in banking.
0:20.2	What we don't know is that it could still go down as one of the worst.
0:23.4	And the latest on Chinese President Xi Jinping's visit to Russia.
0:27.7	Tuesday March 21st.
0:29.4	I'm Luke Vargas with The Wall Street Journal.
0:31.9	And here's the AM edition of What's News, the top headlines and business stories moving
0:37.1	your world today.
0:39.9	US stock futures are edging higher today that follows gains for major indices around the
0:52.3	world.
0:53.3	After Swiss regulators engineered Credit Suisse's takeover by UBS over the weekend.
0:59.1	But just how confident can investors really be, given the continuing turmoil in the banking
1:04.5	sector and ahead of a key interest rate decision due tomorrow from the US Federal Reserve?
1:11.2	Here to help answer that is Wall Street Journal Finance Editor Alex Fregos, who joins us
1:15.7	from our London newsroom.
1:17.8	Alex, one key concern for investors this week, particularly in Europe, has been these
1:22.7	cocos or AT1 bonds, specifically for European banks.
1:28.0	That is, after the value of those bonds at Credit Suisse were basically wiped out as a part
1:33.5	of the UBS takeover, are you seeing signs that the concerns around those bonds have abated
1:39.7	a bit since yesterday?
1:41.5	I think there's been a little bit of relief as people have come to understand a little
	...

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