- UBS acquired the Swiss lender last month after ‘weakness’ in the latter’s financial reporting and internal controls.
- The government-brokered deal included $120.5 billion in financial guarantees.
Credit Suisse has contracted the New York City-based investment company BlackRock to sell its portfolio of structured bonds.
The securities of the beleaguered Swiss lender’s assets, comprising collateralized loans obligations, niche asset-backed debt, and commercial mortgage bonds, have been on sale for the past two weeks, according to a report by Bloomberg.
Last month, UBS, the investment bank based in Switzerland, acquired Credit Suisse for US $3.2 billion in a state-brokered deal involving $120.5 billion in financial guarantees. The rescue deal was not well-received by a section of Switzerland’s parliament. The lower house objected to the arrangement, while the upper house agreed.
Nonetheless, the Swiss government had already committed the funds under an emergency law provision, and the parliamentary vote was symbolic.
See Related: Banks Are Losing Money On Mortgages Financed; Unaffordable Housing Prices Are The Cause
Divided Legislature Over The Credit Suisse – UBS Deal
Karin Keller, a member of the Swiss Federal Council, commented that the acquisition was important in saving the financial institution in Switzerland despite the concerns raised by the country’s legislators on using the emergency law in the Credit Suisse-UBS deal.
‘‘I heard anger, I heard frustration, sometimes I also heard a bit of helplessness,’’ she said, commenting on the division in parliament. The politicians also questioned why the Swiss financial regulator could not prevent the collapse of Credit Suisse.
Troubles began mid-March when Credit Suisse announced that it had discovered material weaknesses in its financial reporting and internal controls, causing a drop in the company’s shares by 4%. The events came amid similar banking collapses in the US involving SVB, Silvergate, and Signature Bank.
See Related: Silicon Valley Bank Deposits and Loans Bought by First-Citizens Bank
