UBS to acquire smaller rival Credit Suisse; what does that mean for bank's RTP operations?

DeJuan Hoggard Image
Monday, March 20, 2023
UBS to acquire smaller rival Credit Suisse, RTP operations as 'usual'
Swiss bank UBS announced plans to acquire its smaller rival Credit Suisse in a deal for $3.25 billion dollars.

RESEARCH TRIANGLE PARK, N.C. (WTVD) -- In a move that shook the global banking industry, Swiss bank UBS announced plans to acquire its smaller rival Credit Suisse in a deal for $3.25 billion. The news comes as the global financial market has been in turmoil since the recent failures of both Silicon Valley Bank and Signature Bank.

"Our banks are all sound and solid," North Carolina Gov. Roy Cooper said at a Monday event on the campus of North Carolina Central University. "I think people can rest assured that their funds are safely deposited in North Carolina banks. And we'll just have to see how this shakes out nationally."

The news comes amid fear that global markets lack stability and that a return to the financial crisis of 2008 could be on the horizon. However, wealth management expert Conley Perry doesn't quite see it that way.

"(The acquisition) over the weekend kind of helped that, but it doesn't stop it," said Perry. "I encourage people to just remain patient, Understand that there are safeguards in place, understand there's insurance in place. I understand it's not going to really affect you that much. And we just have to kind of get through this and be patient."

RELATED: Fed was aware of Silicon Valley Bank problems more than a year before its collapse

Additionally, the FDIC insures depositors up to $250,000 for their deposits in federally insured banks.

"Local banks also have the same coverage just like the bigger banks," Perry added. "If you have under $250,000 your money is safe and you're OK, and you can take advantage of that, I wouldn't, I wouldn't worry at all. There's no fears."

Perry said if you have more than $250,000, it would be best to spread your money out across several banks.

At Credit Suisse's Research Triangle Park campus, it still remains to be seen what the weekend news will mean for employees.

In a statement on its website, Credit Suisse said, "While precise details of the transaction are still being worked through, Credit Suisse would like to stress that we do not expect there to be any disruption to client services. We are fully focused on ensuring a smooth transition and seamless experience for our valued clients and customers, and we are committed to keeping you informed in a timely fashion with any further developments relevant to you."