The days have come for the sale of Credit Suisse, one of the largest and oldest banks in Switzerland. To buy Credit Suisse, which has a history of 167 years, pressure has been put on its own rival bank UBS by Swiss regulators. what is the full timeline
Image Credit source: Official Site
On hearing the name of Switzerland only three things come to the mind of the common Indian. The first is a film by Yash Chopra, the second is the black money of the people of India in Swiss banks and the third is the visit of leaders to the World Economic Forum in Davos. But these days Switzerland remains a topic of discussion for another reason. This is Credit Suisse Bank reaching the verge of drowning, and now the number of sales is coming.
This bank of Switzerland is not one or two years old, it is 167 years old. Now its rival bank UBS has agreed to buy it, although it has placed a condition of guaranteeing $ 6 billion in front of the government. So the final decision is yet to be taken. After all, how has been the journey of Credit Suisse in these years…
Bank started in 1856
Credit Suisse started in the year 1856. It was founded by politician and businessman Alfred Asher. (Alfred Escher) had started. Although then its name was not Credit Suisse, but it was Schweizerische Kreditanstalt That is, it was known by the name SKA.
This bank was established to fund a railway project. Then shares worth 3 million francs were issued, but the response of the people was such that their value reached 221 million francs within three days. Till date, this bank has played a big role in speeding up the industrialization of Switzerland.
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Switzerland’s first pension program launched
Alfredo launched Switzerland’s first pension program in 1857. It was guaranteed by Credit Suisse Funds. In the year 1863, he laid the foundation of a reinsurance company. Along with these two institutes ‘Swiss Life’ and ‘Swiss Re’, he also founded Credit Suisse.
Global bank started forming after 1870
The formation of SKA’s global bank started in 1870 itself. Then the bank had opened its representative office for the first time on foreign soil i.e. in New York. While the first branch of the bank outside Zurich opened in Basel in 1876.
After this, in 1932 First Boston Bank was established. It was established as a subsidiary. SKA formed the Swiss American Corporation in 1939. Its focus was on the investment business.
In 1962, SKA acquired the Zurich operation of the American investment bank White Weld. After this, in 1964, it became a full service bank in New York.
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Listed on the New York Stock Exchange in 1982
In 1982, SKA became the first Swiss bank to be listed on the New York Stock Exchange. At the same time, it formed a sister company, Credit Suisse Holding, which bought a 45 percent stake in First Boston in 1988. Its name was changed to CS First Boston. In 1989, Credit Suisse Holding became the parent company of the SKU Group.
Got Credit Suisse Group name in 1997
Credit Suisse’s new journey began in 1990, when it bought a controlling stake in CS First Boston Bank, a major US investment bank. After this it acquired many banks one by one. This includes Bank Leu, Foxbank, Neue Arguer Bank.
In the year 1997, Credit Suisse Holdings said goodbye to the SKA name and became Credit Suisse Group. Then it also acquired the insurance company Winterthur. After this, Credit Suisse started playing an important role in almost every sector of the financial sector.
Crisis period came in March 2023
The crisis of Credit Suisse came in the year March 2023. There was a sudden drop of 30 percent in the share price of this Swiss bank. The reason for this was the refusal of Saudi National Bank, the largest shareholder investing in Credit Suisse, to provide further assistance due to regulatory limits.
However, to save Credit Suisse, the central bank of Switzerland has given a credit line of $ 54 billion. At the same time, pressure has also been made on UBS to take over the bank.