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Swiss sweat over size of new superbank

UBS and Credit Suisse’s merger will create the biggest bank in Switzerland, raising concerns about its size. Both banks are considered too big to fail and are of strategic importance to the global banking system. Some in business, industry, and politics are sceptical about the merger and the impact on services offered to companies, costs, and competition. The merger prevented the collapse of Credit Suisse and triggered criticism among Swiss political circles, with calls for further regulation and partial nationalization.

Google launches ChatGPT rival in US and UK

Google has invited people in the US and UK to test its AI chatbot, Bard, which can churn out essays, poems or computing code on command. CEO Sundar Pichai said the chatbot had been tested with 80,000 Google employees, and would now be tested with the public as a “first step” before going out to more countries in other languages. Unlike Microsoft-backed ChatGPT, Bard can “access and process information from the real world through Google Search and keep my response consistent with search results”, the bot said.

Suit says Meta board ‘turned blind eye’ to human trafficking

Meta, the parent company of Instagram and Facebook, is facing a shareholder lawsuit filed in the US state of Delaware accusing its board members of ignoring human and sex trafficking on its platforms. The suit calls for Meta CEO Mark Zuckerberg and other executives to institute reforms and pay damages. Meta has already been facing numerous lawsuits, including those related to mental health concerns of young users and allegations that it put profits before safety.

China diplomatic offensive lays down new challenge for US

Chinese President Xi Jinping’s diplomatic efforts in Ukraine are not expected to result in breakthroughs, but fears are growing in Washington that China’s actions may increase its credibility on the world stage. Experts believe that Xi is more interested in being seen as a peacemaker and changing the narrative, rather than actually attaining peace in Ukraine. However, China’s diplomatic efforts could still have a marginal impact, especially in developing nations where there is less enthusiasm for preserving an “international rules-based order.”

Singapore ranks 1st in Asia for user data requests, says Surfshark report

Singapore ranks 1st in Asia and 3rd globally for user data requests from Big Tech, with 607.1 accounts requested per 100k people, according to a Surfshark report analyzing data from 2013 to 2021. Apple complied with 82% of requests, outpacing Meta, Google, and Microsoft.

French govt survives no-confidence votes in pension fight

The French government under President Emmanuel Macron on Monday survived two no-confidence motions in parliament, but still faced intense pressure over its handling of a controversial pensions reform.

Credit Suisse deal wipes out high-risk debt holders

Credit Suisse’s $17.3 billion worth of high-risk debt will be written off as part of its merger with UBS, according to Swiss authorities. The 16 billion Swiss francs of additional tier 1 bonds will be written down, resulting in an increase in the bank’s core capital. Shareholders will receive three billion Swiss francs, while the AT1 bonds will be written off to zero, a blow to bondholders. The merger with UBS was designed to prevent Credit Suisse’s troubles from spreading to the wider banking industry.

US regulator sells failed Signature Bank assets to another lender

Flagstar Bank will take over deposits and some loan portfolios of failed Signature Bank, according to the Federal Deposit Insurance Corporation. The bank’s 40 branches will open under Flagstar on Monday, but $60 billion in loans and $4 billion in deposits related to Signature Bank’s digital banking business will remain under the regulator’s control. Meanwhile, the FDIC is seeking to sell the failed Silicon Valley Bank in at least two parts after a massive wave of withdrawals from the bank sparked fears of contagion across the industry.

French government faces make-or-break vote after pensions uproar

French Prime Minister Elisabeth Borne faces two no-confidence votes in the National Assembly after pushing through a pension reform without a vote. While her allies have the most MPs, they lack an absolute majority, but observers doubt the opposition can muster enough votes to topple the government. The reforms have prompted spontaneous protests and strikes, with opposition parties saying it places an unfair burden on low earners, women and physically demanding jobs. While Macron is unlikely to change unpopular policies, a new prime minister or fresh elections are options to reset his image.

UBS takeover of Credit Suisse: the main points

UBS’s takeover of Credit Suisse will create a banking giant worth three billion Swiss francs, preserving financial stability and creating a wealth management behemoth with $5 trillion in total invested assets. The deal will be an all-share transaction, and Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares held. The Competition Commission will have no say in the exceptional merger between the country’s two biggest banks, and the merger is expected to be consummated by the end of 2023.