BlackRock has refuted claims that they are interested in a deal to salvage Credit Suisse, a Swiss-based global investment bank.
BlackRock is not buying Credit Suisse
Recent reports highlighted that BlackRock, a global investment company with over $10t in assets under management, was planning to acquire Credit Suisse, which is currently facing a liquidity crisis. However, in a tweet, BlackRock said they had no plan or interest in acquiring the troubled lender.
Earlier on, the Financial Times, citing five people aware of the matter, indicated that BlackRock was bidding for Credit Suisse and would rival UBS AG.
It was also speculated that Blackrock was exploring several options, including involving other investors in the bid or purchasing smaller parts of Credit Suisse.
Blackrock has since denied any of the above rumors.
Credit Suisse’s financial health issues have surfaced due to recent macroeconomic problems. The bank’s stock has fallen by almost 25% since January and 70% in the past 12 months. Swiss authorities have been ramping up support for the bank to avert contagion. On Wednesday, the Swiss National Bank, Switzerland’s apex bank, allowed Credit Suisse to borrow over $53b, helping calm panicked investors.
Blackrock had warned Silicon Valley Bank
Other reports indicate Blackrock warned Silicon Valley Bank (SVB) about its portfolio problems last year. In 2020, SVB hired the Financial Markets Advisory (FMA) Group of BlackRock to analyze portfolio risks. The FMA checked how the securities portfolios of SVB would respond to factors like increases in interest rates and other macroeconomic conditions.
The report, released on January 2022, suggested a failure on SVB’s part regarding the inability to have real-time data on its securities portfolio. Despite getting criticism, reports indicate that SVB did not do a follow-up.
Amid the ongoing problem with the banking industry and stock markets, emerging rumors indicate that BlackRock is exploring how blockchain tech can help modernize stock markets.