Founder Credit Suisse Bank is set to be acquired by rival UBS, Switzerland’s largest bank, in an emergency purchase aimed at averting a wider crisis in the global banking system.
UBS’s $3.2 billion takeover of Credit Suisse was arranged quickly, with officials aiming to finalize the deal before markets open on Monday.
“With UBS’s acquisition of Credit Suisse, a solution has been found to ensure financial stability and protect the Swiss economy in this exceptional situation,” said the Swiss National Bank. said in a statement Sunday.
UBS could also receive up to $108 billion in loans from the Swiss National Bank, according to a statement.
The Credit Suisse acquisition comes at a time when banks have been rocked by financial sector uncertainty stemming from the historic collapse of Silicon Valley Bank in the United States earlier this month. After the California-based company went bankrupt, many other banks, including those in other countries, faced share price shocks as investors and depositors lost confidence in some midsize banks.
US authorities stepped in to back all uninsured deposits at Silicon Valley banks well beyond the $250,000 insurance guarantee provided by the Federal Deposit Insurance Corporation. But moves to boost consumer confidence haven’t completely stifled fears of a wider banking crisis.
Credit Suisse’s bankruptcy came after the Swiss National Bank offered a $54 billion lifeline last week. But that didn’t save the bank from lasting problems highlighted by the broader global banking problem, which has suffered losses that have worsened since his 2008 financial crisis last year. Recorded.
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