The takeover of Credit Suisse (CS), Switzerland’s second largest bank, by the country’s largest credit institution, UBS, helped prevent not only the eventual collapse of CS, but also the global financial crisis. Words from Martin Schlegel, Vice-President of the Swiss National Bank opens local broadcaster Schweizer Radio und Fernsehen (SRF).
Credit institution Credit Suisse (CS) faced a takeover by its main competitor, Switzerland’s largest bank UBS. Thus, CS ceased to exist in its original form 167 years after its establishment. The deal was worth 3 billion francs, or $3.3 billion.
“That Monday morning (March 20, the deal was announced on the 19th of last month – socialbites.ca), there would most likely be a financial crisis. This could affect not only the Swiss financial centre, but also the international economy. As a global systemically important bank, CS will go bankrupt on Monday. Never before had such a bank gone bankrupt. Schlegel said there is a huge risk of a global financial crisis.
April 4th Axel Lehmann, President of Credit Suisse Group AG apologized in front of the shareholders of a credit institution due to the inability to prevent the bank’s collapse and further takeover of the financial institution by the country’s largest bank, UBS. At the same time, the general distrust of depositors and investors towards the second largest Swiss bank by capital had already formed even before he joined management.