Credit Suisse to Merge with UBS in a Historic Deal Following Banking Turmoil

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Welcome to Jaggards Wednesday Market Insight

22 March 2023

As a 12 pm, AEST.

Gold Spot Price $AU2907

Silver Spot Price $AU33.69

Platinum Spot Price $AU1,474

Market News Highlights

Another extremely volatile week again on the back of additional banking news, specifically from Credit Suisse. A seemingly timeless bank is now no more. This from Credit Suisse themselves, 2 days ago. “Credit Suisse and UBS entered into a merger agreement on Sunday following the intervention of the Swiss Federal Department of Finance, the Swiss National Bank, and the Swiss Financial Market Supervisory Authority FINMA (FINMA). UBS will be the surviving entity upon closing of the merger transaction. Under the terms of the merger agreement, all shareholders of Credit Suisse will receive 1 share in UBS for 22.48 shares in Credit Suisse.”

While financial leaders continually reinforce that the current banking position is not a repeat of the 2008 financial crisis, it surely is ringing some bells for people who remember its failings.

Almost 15 years ago, similarly, JPMorgan Chase purchased Bear Stearns following what amounted to a bank run. JPMorgan purchased Bear Sterns at a massive discount. 15 years later UBS seem to secure a similar discount to secure Credit Suisse, a worldwide recognised bank.

And of course, Gold and Silver rallied hard following this extraordinary news.

Gold hit a new all-time high in Australia, hitting $AU2966 per oz (or $US2010).

Gold has since eased back to $AU2907 today.

*Not financial advice, please do your own research prior to any investment decisions you make.

30 days of Gold pricing (USD)