Igor Golovniov/SOPA Images/LightRocket via Getty ImagesA Credit Suisse bank branch seen in Geneva. The bank was acquired by UBS on Sunday.With the impeccable timing of one of the country's famed watches, Swiss officials brokered a last-minute emergency takeover of the troubled bank Credit Suisse by fellow banking giant UBS.
In a press conference on Sunday, Swiss president Alain Berset said the recent banking industry turmoil had destabilized Credit Suisse and that this deal was vital to stabilizing the bank and the global banking sector. Under the deal, UBS Group AG will buy Credit Suisse for more than $2 billion in an all stock deal. UBS will also get an extra $100 billion from the Swiss central bank as part of the deal.The marriage between UBS and struggling rival Credit Suisse marks the latest eruption in the ongoing banking troubles sparked by the collapse of Silicon Valley Bank.
Panicked investors and jittery depositors pulled billions out of the long-troubled Credit Suisse in recent days, leading to worries the bank could become insolvent if emergency measures were not taken. The Swiss central bank threw a $54 billion life to Credit Suisse, but it wasn't enough to stabilize the institution.
It's yet another stunning event in more than a week of turmoil and alarm in the banking sector, especially worrisome because Credit Suisse is what's known as a"global systemically important bank." That essentially means if Credit Suisse fails, it could have ripple effects throughout the global economy.
yeah, because that'll fix things. 🙄
How many more until the big banks are much fewer (or one) and the community banks are gone?
lol so dumb. *that* just triggers more hysteria. who's going to buy UBS next?
I thought Swiss banks had a reputation for exceptional stability? I know, that's probably over with a lot of other things.
Are all the crimes against humanity CS is responsible for included in the deal?
I have absolutely zero evidence... not even a rumor to support my opinion, but when I hear the name 'Credit Suisse' the first thing I think of is money laundering.