As Silicon Valley Bank succumbed to rising demand for withdrawals and lack of funds, followed by Signature Bank, other lenders, and the government are trying to avert a crisis. But as they fail to restore investor confidence despite providing $30 billion to First Republic, BlackRock's CEO warned that SVB is just the beginning.
As the dominoes fall in Europe, the American investment firm is reportedly in the race to buy embattled Swiss bank Credit Suisse, before UBS does.
Disrupting negotiations between Swiss peers?
As two top Swiss lenders UBS and Credit Suisse meet to discuss a merger, BlackRock is working on a rival bid according to the Financial Times.
The firm which has investments in firms such as Reliance, Tata Power and Infosys, and could bid for portions of Credit Suisse's business.
As BlackRock pulls in other investors, the deal will face regulatory hurdles in the US and Europe even if it goes through.
BlackRock's old ties with Credit Suisse
The CEO of BlackRock, Larry Fink also used to work at Credit Suisse's investment banking spinoff First Boston.
The Swiss lender had also been planning an IPO for First Boston in 2025, in a bid to raise funds for survival.
As one of Credit Suisse's major clients in investment banking, BlackRock is eyeing in-house trading capacity through the acquisition.
The American firm's plans for the takeover emerge at a time when reports suggest that both UBS and Credit Suisse aren't keen on a merger.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
