Discussions on the future of Credit Suisse ended, UBS acquired Credit Suisse. informs Press service of the Swiss National Bank (SNB).
“The Swiss National Bank is providing substantial liquidity assistance to support the takeover of UBS Credit Suisse. This takeover was made possible with the support of the Swiss Federal Government, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank.
The Swiss National Bank announced that it is backing UBS’s takeover of Credit Suisse with an important liquidity bailout: both banks can receive a total of 100 billion francs via a collateral-backed loan in the event of bankruptcy.
Swiss President Alain Berset described the deal as the best solution to restore confidence in the financial system, Reuters reported.
formerly UBS suggested It bought Credit Suisse for about 1 billion francs ($1.1 billion) and then doubled the amount.
Credit Suisse, Switzerland’s second-largest bank, lost almost a quarter of its value on March 15 and plunged to a record low after its biggest investor said it would not be able to provide additional bailouts.