:UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities that won applause from other central bankers keen to avoid further market-shaking turmoil.
U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen said they welcomed the announcement by the Swiss authorities to support financial stability. The Swiss banking marriage follows efforts in Europe and the United States to support the sector since the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.It was not yet clear if the deal is enough to restore trust in lenders around the world. The first indication could come when stock markets open in a few hours in Asia, Australia and New Zealand.
The U.S. Federal Deposit Insurance Corp is planning to relaunch the sale process for Silicon Valley Bank, with the regulator seeking a potential breakup of the lender, according to people familiar with the matter. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to 0.76 Swiss francs per share for a total consideration of 3 billion francs, UBS said.
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