Credit Suisse was bought by rival UBS

March 20, 2023
1 Min Read

The bank was bought by rival UBS in a Swiss government-backed deal on Sunday after regulators worked frantically round the clock to secure a deal.The Swiss National Bank said the rescue deal for Credit Suisse was the best way to restore the confidence of financial markets and to manage risks to the economy.

It comes amid fears over the global financial system after two smaller US banks failed in recent weeks.
The Bank of England, along with the Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank, said the move served as an “important backstop to ease strains in global funding markets” and take the pressure off banks.
Christine Lagarde, president of the European Central Bank, said she welcomed the “swift action” of the Swiss authorities.

In a statement following UBS’s takeover of Credit Suisse, Switzerland’s central bank said the deal protected the Swiss economy “in this exceptional situation”.The 167-year-old bank is loss-making and has faced a string of problems in recent years, including money laundering charges.

The last-minute deal valued Credit Suisse at just over $3.15bn (£2.6bn)

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