Credit Suisse, UBS crunch talks; US bank fallout: What you need to know

UBS AG is reportedly requesting that the Swiss government cover approximately $6 billion in costs if it acquires rival Credit Suisse, according to a source with knowledge of the talks. Both parties are hurrying to come to an agreement to rebuild confidence in the struggling Swiss bank.

DEVELOPMENTS

* If UBS acquires Credit Suisse, the Swiss government may provide a guarantee against the risks, according to two unnamed sources with knowledge of the situation.

* Credit Suisse’s plan to spin off its investment bank under the First Boston name is being cast into doubt by takeover talks with UBS, according to Bloomberg News.

* A source familiar with the matter informed Reuters that Warren Buffett of Berkshire Hathaway Inc. held talks with top Biden administration officials regarding the banking crisis.

* According to the Wall Street Journal, U.S. Senator Elizabeth Warren, who advocates tighter banking regulations, is demanding an investigation into the failures of Silicon Valley Bank and Signature Bank.

* Bloomberg News reported on Saturday that First Citizens BancShares is evaluating an offer for Silicon Valley Bank, while at least one other potential buyer is seriously considering an offer.

* Bloomberg reported that the Mid-Size Bank Coalition of America has asked regulators to extend federal insurance to all deposits for two years in a letter from the coalition.

* The banking industry’s rapid descent into turmoil has shaken global markets and governments, bringing back memories of the global financial crisis in 2008. The ramifications may be long-lasting.

ANALYSIS

* As asset woes weigh on U.S. regional bank deal talks, investors are seeking protection against a market crash.

* Investors are getting alarmed as concerns about banks grow, and they are looking for precautions against a possible market collapse.

* The Federal Reserve is facing calls to halt due to debates on whether to prioritize financial or price stability.

* The banking panic is reminiscent of 2008 and could bring about long-term change.

(Compiled by Reuters editors)

This week, one America’s Rachel Acenas presented the top stories from the United States and around the globe in our week in review.

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