© Reuters. An individual walks previous the Credit score Suisse workplace in Canary Wharf in London, Britain, March 20, 2023. REUTERS/Hannah McKay
By Nell Mackenzie and Lananh Nguyen
LONDON (Reuters) – Financial institution of America (NYSE:)’s digital shares desk has buying and selling with a desk at Credit score Suisse that makes use of computer-led methods, “out of an abundance of warning efficient right this moment,” an electronic mail seen by Reuters on Monday stated.
Financial institution of America stated it will now not ship trades to Credit score Suisse’s “ATS Crossfinder”. That buying and selling platform anonymously matches purchase and promote orders for a similar sorts of securities, in response to the Credit score Suisse web site. The U.S. Securities and Alternate Fee web site calls the ATS Crossfinder a “darkish pool.”
Financial institution of America despatched the e-mail to merchants and hedge fund purchasers on Monday morning.
On Sunday, the 167-year previous Swiss lender was subsumed into its bigger rival UBS, which agreed to pay 3 billion Swiss francs ($3.23 billion) for Credit score Suisse in a package deal engineered by Swiss regulators.
Credit score Suisse declined to touch upon the e-mail and Financial institution of America additionally declined to remark.
The Credit score Suisse rescue was backed by an enormous Swiss authorities assure, serving to forestall what would have been one of many largest banking collapses for the reason that fall of Lehman Brothers in 2008.
Switzerland has pledged 260 billion francs in liquidity traces and ensures to UBS to assist clean the takeover as Credit score Suisse purchasers and counterparties reassess their relationship with the stricken lender.
The deal can even make UBS Switzerland’s solely world financial institution and the Swiss financial system extra depending on a single lender.
