UBS to buy Credit Suisse in historic deal to end crisis

Swiss banking giant UBS agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.

The plan, negotiated in hastily arranged crisis talks over the weekend, seeks to address client outflows and a massive rout in Credit Suisse’s stock and bonds over the past week following the collapse of smaller US lenders. A liquidity backstop by the Swiss central bank mid-week failed to end a market drama that threatened to send counterparties fleeing, with potential ramifications for the broader industry.

UBS Chairman Colm Kelleher said he will shrink Credit Suisse’s investment bank, a unit that has racked up losses in recent years, while he’s determined to keep the Swiss universal bank, the one business of Credit Suisse that remained a relative bastion of stability in the crisis.

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Why the Credit Suisse-UBS deal simply must get doneGlobal markets can’t afford for the takeover talks between UBS and stricken Swiss rival Credit Suisse to fail. i kNoW! lEts cReaTe aN eVeN biGgEr gLoBaL mOnStEr tHaT iS tOo biG tO fAiL! gEniUs!
Source: FinancialReview - 🏆 2. / 90 Read more »