CREDIT SUISSE LIFELINE, FIRST REPUBLIC RESCUE: WHAT YOU NEED TO KNOW

(Reuters) - Regulators urged Credit Suisse to merge with rival UBS AG as the struggling Swiss lender began a make-or-break weekend after some rivals grew cautious in their dealings with it.

At least four major banks, including Societe Generale and Deutsche Bank, are restricting new trades involving Credit Suisse or its securities, five sources told Reuters.

DEVELOPMENTS

*Credit Suisse shares jumped 9% in after-market trading after the Financial Times reported UBS was in discussions to take over all or parts of its Swiss rival as the boards of the two banks were set to meet separately over the weekend.

* Swiss regulators are encouraging UBS and Credit Suisse to merge but neither bank wants to do so, one source said. The regulators do not have the power to force the merger, the person said.

*U.S. investment giant BlackRock denied a separate report in the Financial Times that it was participating in a rival bid for all or parts of the Swiss bank.

* SVB Financial Group filed for a court-supervised reorganisation under Chapter 11 bankruptcy protection to seek buyers for its assets, days after regulators took over its former unit Silicon Valley Bank.

* ECB Governing Council member Pierre Wunsch does not expect a repeat of the 2008 financial crisis despite turbulence caused by the collapse of Silicon Valley Bank, arguing European banks were subject to tougher rules than regional U.S. banks.

* Moody's downgraded First Republic Bank's debt. Before the announcement, the bank's shares plunged nearly 33%, capping an 80% wipeout for the past 10 sessions, despite a rescue package with $30 billion in deposits injected by large U.S. banks.

* The U.S. Federal Deposit Insurance Corp (FDIC) is considering steps to facilitate takeovers of Signature Bank and Silicon Valley Bank, a source told Reuters.

* U.S. President Joe Biden said the banking crisis has calmed down after the collapse of Silicon Valley Bank and Signature, seeking to reassure investors and depositors. He urged Congress to give bank regulators greater power.

* A senior official at the People's Bank of China said the collapse of Silicon Valley Bank (SVB) showed how rapid monetary policy shifts were having spillover effects, state-owned newspaper Shanghai Securities News reported.

MARKETS

* Investor sentiment remained fragile on Friday, leaving global equities under pressure while gold prices posted their largest one-week rally in three years. The dollar slipped and Treasury yields fell.

* As worries over banks swirl, investors are seeking protection against a market crash

(Compiled by William Mallard and Kirsten Donovan)

2023-03-18T11:52:42Z dg43tfdfdgfd