Crypto News

BlackRock Says No To Credit Suisse – Are Their Books So Bad?

BlackRock Says No To Credit Suisse – Are Their Books So Bad?
© Copyright Image: Crypto Breaking News

Credit Suisse Group, a global investment bank based in Switzerland, is struggling to survive. However, despite rumors, BlackRock says it has no interest in participating in any plans to acquire the bank.

Credit Suisse Is Under Pressure

Credit Suisse is the second-largest bank in Switzerland. In the past week, the lender’s stock crashed by 30%, forcing it into a financial spiral that spooked its investors.

In response, the bank announced that it would borrow up to CHF 50 billion, or $53.7 billion from the Swiss National Bank, as relief funds. However, the bank’s woes are far from over.

According to reports, the Swiss bank may need to take further measures to restore the confidence of its investors.

BlackRock, the world’s largest asset manager, says it has no interest in participating in any plans to acquire all or any part of the struggling bank. This announcement caused spectators like Coin Bureau to question the severity of the problem in Credit Suisse’s books.

The global market is currently experiencing high volatility levels, making investors hyper-sensitive to financial institutions’ identity and economic positioning. That is why the announcement by BlackRock has significantly impacted Credit Suisse’s attempts to restore confidence.

The situation between BlackRock and Credit Suisse is similar to Binance’s intent to avoid FTX and the subsequent FTX crash. Suggesting that things were worse than what was previously advertised.

UBS May Take Over To Restore Trust

Credit Suisse’s stock is down over 70% in the last year, with customers withdrawing $133 billion from 2022 to date. In February, the bank reported an annual net loss of around $8 billion, its worst record since the 2008 financial crisis.

Credit Suisse Group Stock Price| Source: NYSE, TradingView

To restore trust in the financial sector, the Swiss government and global authorities are nearing a deal for UBS Group to take over Credit Suisse and fix the crisis of confidence.

Credit Suisse also announced that it would buy back some of its debt. Some analysts are not in support, seeing such actions as a potential vulnerability that may hinder its survival.

On the other hand, BlackRock has been researching the use of Blockchain and tokenization of stocks as an upgrade to the traditional stock market.

One use case would be to solve the inefficiency of stock transfers between brokers. Unlike traditional stock transfers that require several days of confirmation, the blockchain can usher in automatic recording and instant processing of stock transfer transactions.

Feature Image From Getty Images, Chart From TradingView

Source: NewsBTC.com

The post BlackRock Says No To Credit Suisse – Are Their Books So Bad? appeared first on Crypto Breaking News.

Read more: https://www.cryptobreaking.com/blackrock-says-no-to-credit-suisse-are-their-books-so-bad/

Text source: Crypto Breaking News

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories