UBS Agreed To Buy Troubled Rival Credit Suisse

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UBS agreed to buy rival Credit Suisse on Sunday, Reuters reported. UBS will pay 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses in a deal expected to close by the end of 2023.
According to the Reuters report, In a sign of a coordinated global response, the U.S. Federal Reserve said it had joined with central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” for restoring calm.
On Thursday, Credit Suisse confirmed its intention to borrow up to CHF 50 billion (about $54 billion) from the Swiss National Bank to support liquidity and investor confidence after shares of the bank continued a steep downward momentum. Credit Suisse’s decision occurred after the Swiss regulators came forward with an emergency liquidity lifeline to pull out the lender from any potential crisis as the bank’s share price dropped around 30 percent on Wednesday.
Credit Suisse, with assets of about CHF 530 billion ($573 billion), is the first major global bank to receive an emergency lifeline since the financial crisis in 2008. The lender was already in trouble after posting a yearly loss of CHF 7.3 billion, which is its biggest loss since the 2008 crisis. Moreover, it highlighted “material weaknesses” in its control and reporting processes over the past two years in a delayed report lodged in the United States. The bank’s share price has kept tanking for days now, also taking down the European banking index. The incoming liquidity looks to have restored some of the investors’ sentiment toward the bank, as its share price gained more than 5.5 percent in after-hours trading since the announcement.

UBS agreed to buy rival Credit Suisse on Sunday, Reuters reported. UBS will pay 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses in a deal expected to close by the end of 2023.
According to the Reuters report, In a sign of a coordinated global response, the U.S. Federal Reserve said it had joined with central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” for restoring calm.
On Thursday, Credit Suisse confirmed its intention to borrow up to CHF 50 billion (about $54 billion) from the Swiss National Bank to support liquidity and investor confidence after shares of the bank continued a steep downward momentum. Credit Suisse’s decision occurred after the Swiss regulators came forward with an emergency liquidity lifeline to pull out the lender from any potential crisis as the bank’s share price dropped around 30 percent on Wednesday.
Credit Suisse, with assets of about CHF 530 billion ($573 billion), is the first major global bank to receive an emergency lifeline since the financial crisis in 2008. The lender was already in trouble after posting a yearly loss of CHF 7.3 billion, which is its biggest loss since the 2008 crisis. Moreover, it highlighted “material weaknesses” in its control and reporting processes over the past two years in a delayed report lodged in the United States. The bank’s share price has kept tanking for days now, also taking down the European banking index. The incoming liquidity looks to have restored some of the investors’ sentiment toward the bank, as its share price gained more than 5.5 percent in after-hours trading since the announcement.



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