Historic purchase from UBS

Switzerland’s largest bank, UBS, has acquired Credit Suisse, which is at the center of the banking crisis that has threatened global financial markets, in a historic deal. According to information from sources familiar with the matter, UBS has agreed to buy banking giant Credit Suisse for over $2 billion. It was reported that UBS will pay 0.50 francs (about $0.54) per share for Credit Suisse, which is below Friday’s closing price of 1.86 francs. It is stated that the Swiss government will take emergency measures to accelerate the acquisition and that the six-week period given for shareholder consultations will be bypassed. Statement from the Swiss National Bank and FINMA The Swiss Financial Markets Regulatory Authority (FINMA) announced that it has approved the acquisition. The statement said, “The acquisition and measures will ensure stability for UBS and Credit Suisse clients and the Swiss financial center.” The institution also announced that the government support will trigger a write-off for all Credit Suisse AT1 shares worth 16 billion francs ($17.2 billion). The Swiss National Bank announced that the acquisition provided a solution to ensure financial stability and protect the country's economy in this exceptional situation. The Swiss Finance Minister stated that their primary goal with the acquisition was to protect the financial sector and the country's economy. The Swiss government announced that they would strengthen financial market stability until the acquisition was completed and that the federal government had provided a 9 billion franc guarantee to UBS in order to reduce risks for UBS. Fed: We welcome it The US Treasury Department and the Fed also made a statement regarding the acquisition, saying, “We welcome the decision taken by the Swiss authorities to support financial stability.” Credit Suisse had also become a focal point in Europe with the banking sector crisis that began in the US last week. The bank's largest partner, the Saudi National Bank, announced that they would not increase capital, and the bank's stock prices fell sharply. The bank experienced a daily deposit outflow of over 10 billion francs last week. Credit Suisse announced that it would borrow up to 50 billion francs ($54 billion) from the Swiss National Bank (SNB) “to strengthen its liquidity.” Sources said that if the acquisition goes through, there will be layoffs in Credit Suisse’s investment banking unit. There were concerns that the possible bankruptcy of Credit Suisse, which is closely monitored by regulators and is among the major banks in the global financial system, would spread to the entire financial system.