UBS has agreed to the Credit Suisse deal.
Switzerland :
Switzerland’s largest bank Union Bank of Switzerland (Union Bank of Switzerland) has agreed to acquire its rival Credit Suisse (Credit Suisse) in trouble. UBS has agreed to acquire Credit Suisse in a deal that failed to materialize after two US nationals failed earlier this month. UBS has announced the acquisition of Credit Suisse for $3.24 billion. Under this, Credit Suisse’s account will get one share of UBS in exchange for 22.48 shares of stock.
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“The loan is made possible by the support of the Swiss federal government, the Swiss financial market supervisory investment and the Swiss national banks,” the central bank said.
The bank said it would ‘secure financial stability and protect Swiss industrialisation’.
According to The New York Post, the Swiss national bank and the country’s top member FINMA have told their international counterparts that they see the deal with UBS as the only option to prevent Credit Suisse from taking over.
Credit Suisse (CS) had been getting sticky and losing customer confidence for years. Credit Suisse records worst loss in 2022 since global financial crisis. It came to light after the collapses of Silicon Valley Bank and Signature Bank, when underage borrowers took some of their financial back, admitting ‘material fragility’ in their bookkeeping practices last week, reports CNN. Brokerage paid. was reduced.
Credit Suisse stock saw a 25 percent drop during the week. An emergency loan from the Swiss National Bank failed to stop the fall.
The global headquarters of UBS and Credit Suisse are just 300 yards apart in Zurich, but the fortunes of the two have been very divergent lately. UBS stock has gained 15 percent in the past two years and has reported a profit of US$7.6 billion in 2022.
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