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In the meantime, senior Credit Suisse insiders tell us they're hopeful that UBS will acquire Credit Suisse, "hold" the elements that will comprise CS First Boston, and then spin out the unit as planned in 2024.
It's Created a Windfall Opportunity. One of the biggest upsets from the demise of Credit Suisse in March was the writedown of $17 billion of the 167-year-old bank's bonds. Unusually, these bondholders were not paid ahead of shareholders.
Credit Suisse shareholders have suffered a loss of more than 70% this year, as the beleaguered bank has been hit by a series of crises that undermined the confidence of shareholders and customers alike. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
Following several years of scandals, Switzerland's Credit Suisse bank collapsed in March 2023. It was purchased by Swiss rival UBS for about $3.3 billion in a deal approved by Swiss regulators without shareholder approval.
UBS bought Credit Suisse after the smaller bank lost the confidence of customers and investors. The Swiss government engineered the deal and provided a cache of perks, including a guarantee against some potential losses and time to build up more capital.
The globally recognized Credit Suisse logo is now at risk of gradually disappearing from public sight. UBS, the bank orchestrating the integration, has already taken steps to eradicate the historic brand.
In addition, Michael Klein has been appointed Chief Executive Officer (CEO) of Banking and CEO of the Americas, as well as designated CEO of CS First Boston. He will join the Executive Board and report directly to Group CEO Ulrich Korner.
2020s: Revival of the "First Boston" Brand On October 27, 2022, Credit Suisse announced a "radical" restructuring of its investment bank, taking "extensive measures" which will see it return to the "First Boston" brand as an independent Capital Markets and Advisory bank.