Biggest Swiss Bank UBS agrees to buy crisis-hit Credit Suisse in historic deal

Switzerlands biggest bank Union Bank of Switzerland UBS has agreed to take over its troubled Swiss rival Credit Suisse in an emergency rescue deal to unleash the panic after the two American banks failed earlier this month CNN reportedThe Swiss National Bank in a statement said UBS today announced the takeover of Credit SuisseThis takeover was made possible with the support of the Swiss federal government the Swiss Financial Market Supervisory Authority and the Swiss National Bank the central bank addedIt said the rescue would secure financial stability and protect the Swiss economyThis deal came after the Swiss National Bank and the countrys top regulator Finma told their international counterparts they regard a deal with UBS as the only option to stop Credit Suisse from collapsing as per The New York PostAlso Read N Korea launches missile into sea amid USS Korea drillsCredit Suisse CS had been losing the trust of investors and customers for years In 2022 CS recorded the worst loss since the global financial crisis And the confidence collapsed last week after it acknowledged material weakness in its bookkeeping and as the demise of Silicon Valley Bank and Signature Bank spread fear about weaker institutions at a time when soaring interest rates have undermined the value of some financial assets reported CNNThe CS witnessed a fall in shares of 25 per cent over the week An emergency loan from the Swiss National Bank failed to stop the bleedingDesperate to prevent the meltdown from spreading through the global financial system on Monday Swiss authorities had pushed hard for a private sector rescue while reportedly considering Plan B a full or partial nationalizationThe emergency takeover was agreed to after a day of frantic negotiations involving financial regulators in Switzerland the United States and the United Kingdom UBS UBS and Credit Suisse rank among the 30 most important banks in the global financial system and together they have almost USD 17 trillion in assetsThe global headquarters of UBS and Credit Suisse are just 300 yards apart in Zurich but the banks fortunes have been on very different paths recently Shares of UBS have climbed 15 per cent in the past two years and it booked a profit of USD 76 billion in 2022 It had a stock market value of about USD65 billion on Friday according to CNN citing RefinitivThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever