NOS Nieuws•today, 19:59•Edited today, 20:04
The ailing Swiss bank Credit Suisse is taken over by competitor UBS. President Alain Berset and the Swiss central bank announced this in a joint press conference this evening. The amount involved in the acquisition has not yet been disclosed.
If Credit Suisse had not been taken over, it would have had “incalculable consequences” for the country and the international financial market, Berset said. A representative of the central banking body described the deal as “the best solution” for the stability of the Swiss financial market.
Finma, which has the same role as the Netherlands Authority for the Financial Markets (AFM), has approved the merger.
State back cover
The takeover is not unexpected: earlier today it became clear that a deal between the two largest Swiss banks was very likely imminent. In recent days, the banks have been in talks with the Swiss government about a possible takeover.
Earlier today, Credit Suisse would have rejected a takeover bid of 1 billion euros from UBS. The bank, one of Switzerland’s largest, ran into trouble due to the collapse of US banks Silicon Valley Bank and Signature Bank.
There were also reports that the Swiss state would take over the bank, but it never came to that. The government does provide financial backing for the takeover. To bring the takeover to a successful conclusion, 100 billion francs will be released, a small 100 billion euros. The government also guarantees 9 billion francs.
Economics editor Nik Wouters:
“Credit Suisse’s swift bailout shows the level of nervousness in the financial markets about banks. A magnifying glass is being used to identify troubled banks. Problems that seemed under control a few weeks ago are rapidly being exacerbated by the current turmoil. very much bigger.
The great pain of this bailout is with Credit Suisse shareholders. They get much less for their shares than the value last Friday and with that they get a big damper to deal with. This is good news for the bank’s customers. Their money is a lot safer with the takeover by UBS.”
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