FirstFT: Credit Suisse reveals extent of deposit withdrawals before UBS takeover

Credit score Suisse has revealed for the primary time the size at which depositors rushed to withdraw their cash from the Swiss financial institution earlier than it was pressured to merge with rival UBS final month.

In what’s prone to be the ultimate set of outcomes as a stand-alone financial institution, Credit score Suisse stated it suffered outflows of SFr61bn ($68.6bn) within the first quarter because it reported a SFr1.3bn pre-tax loss for the interval.

The 167-year-old financial institution stated the outflows had stabilised however not reversed, underlining the problem confronting the administration staff at rival UBS because it units about making an attempt to combine its former rival.

The $3.25bn takeover was probably the most vital banking deal for the reason that monetary disaster 15 years in the past. UBS chair Colm Kelleher and new chief government Sergio Ermotti have shortlisted 4 administration consultants to assist with the advanced operation of merging the 2 banks, which is anticipated to take years and result in 1000’s of job cuts.

In the meantime, Santander, which has ambitions to change into a big participant in funding banking within the EU and the US, is in talks to rent a number of of Credit score Suisse’s most senior bankers in New York, the Monetary Instances stories this morning.

Right here’s what else I’m preserving tabs on at the moment:

5 extra prime tales

1. EXCLUSIVE: The White Home has requested South Korea to induce its chipmakers to not fill any market hole in China if Beijing bans Idaho-based Micron from promoting chips. The US request was made forward of a state go to by South Korean president Yoon Suk Yeol to Washington.

2. The US dwelling items retailer Mattress Bathtub & Past filed for Chapter 11 chapter safety yesterday. The shop chain, based in 1971, stated it deliberate to close all of its 400 shops by June if it can not discover a purchaser.

3. Comcast yesterday stated Jeff Shell, chief government of NBCUniversal, was stepping down after an investigation right into a grievance of alleged inappropriate conduct with a feminine colleague. Learn extra concerning the checklist of candidates to succeed Shell.

4. Australia has unveiled the most important strategic shift in its navy posture for the reason that second world warfare to adapt to China’s navy build-up within the area. The nation’s defence spending overview warned of “main energy strategic competitors” within the Indo-Pacific and that the nation’s defence posture was “not match for goal”. Learn extra on the deliberate overhaul.

5. A broad worldwide effort is below solution to evacuate overseas nationals from Sudan. The White Home stated over the weekend that it was suspending operations at its embassy and had carried out an operation to take away US authorities personnel from the capital Khartoum.

The Massive Learn

The weeks since Silicon Valley Financial institution collapsed on March 10 have introduced an uncomfortable realisation — the issues that provoked the most important financial institution run in historical past have been neither a freak incidence nor an unforeseeable emergency. Forward of the primary official autopsy on its failure, virtually everybody agrees that the disaster had been hiding in plain sight.

We’re additionally studying . . . 

Chart of the day

Central bankers who handle trillions in overseas trade reserves are loading up on gold. An annual ballot of 83 central banks, which handle a mixed $7tn in overseas trade belongings, discovered that greater than two-thirds of respondents thought their friends would enhance their gold holdings in 2023.

Take a break from the information

For 40 years, AlixPartners has been accumulating knowledge on the core psychological wants of potential recruits — from its receptionists to its chief government. Learn extra on what the assessments present.

Extra contributions by Tee Zhuo and Annie Jonas