UBS Buys Troubled Credit Suisse, Brokered by Swiss Government

During a complex situation, Swiss officials announced a last-minute emergency takeover of Credit Suisse bank by fellow banking giant UBS.

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In a press conference, Swiss president Alain Berset explained the current banking industry turmoil had destabilized Credit Suisse.

Hence, this deal is crucial to stabilize the bank and the global banking sector.

With a stock deal, UBS Group AG will buy Credit Suisse for more than $3 billion.

As a part of the deal, UBS will also receive an extra $100 billion from the Swiss central bank.

The merger between UBS and troubled rival Credit Suisse marks the latest event in the ongoing banking troubles.

This damage is started by the collapse of Silicon Valley Bank (SVB).

Panicked investors and depositors pulled billions out of Credit Suisse in recent days as they thought the bank could become insolvent.

The Swiss central bank sent a $54 billion life-to Credit Suisse, yet it still wasn’t enough to save the institution.

It becomes another nightmare in the banking sector as Credit Suisse is known as a “globally systematically important bank.”

Hence, it could have domino effects throughout the global economy if it fails.

After all, the bank’s problems started years ago, with a series of political and financial scandals that hit its reputation.

For instance, it’s linked to a money laundering operation involving a cocaine business in Bulgaria.