HomeBusinessUBS to buy Swiss bank Credit Suisse for $3.23 billion

UBS to buy Swiss bank Credit Suisse for $3.23 billion


The federal government of Switzerland has announced that UBS will purchase Credit Suisse. The president, Alain Berset, provided this information on March 19. Berset said the suggested solution had “the endorsement of the Federal Council.”

USB will pay 3 billion Swiss francs (about 3.23 billion dollars) to acquire “Credit Suisse” and incur approximately $5.4 billion in losses. The acquisition is anticipated to be finalised by the end of 2023.

The Swiss central bank announced today that the transaction comprises 100 billion Swiss francs ($108 billion) in liquidity support for UBS and Credit Suisse.

At a news conference, Colm Kelleher, president of UBS, stated that his institution would progressively liquidate the global investment bank Credit Suisse, which employs thousands of people. By 2027, UBS anticipates achieving yearly savings of $7 billion.

Last week, Credit Suisse shares lost a fourth of their value. As it struggles to recover from scandals that have damaged investor and customer confidence, the bank was obliged to use $54 billion in central bank funds.

The news of the impending takeover of the struggling Swiss bank by its rival was met with approval by major financial players in Europe and North America.

The European Central Bank (ECB) has characterised Switzerland’s response to Credit Suisse’s issues as essential to reestablishing market stability. Also, the ECB vowed to provide European banks with credit if necessary.

Secretary of the Treasury Janet Yellen and Chairman of the Federal Reserve Board Jerome Powell applauded the announcement of the Credit Suisse acquisition. 

The Bank of England applauded the Swiss authorities’ decision to negotiate an agreement and stated that the UK banking sector was adequately capitalised.

Frontier India News Network
Frontier India News Networkhttps://frontierindia.com/briefs
Frontier India News Network is the in-house news collection and distribution agency.


Please enter your comment!
Please enter your name here

UK’s “Hersa” Program: A New Radio Weapon to Fry Drones and Other Threats for a Dime

In Ukraine, multi-million dollar surface-to-air missile systems are employed to kill kamikaze drones worth a few thousand dollars, like the Iranian Shahed 136. This highlights the...

German Politician Calls for Deploying Air Defenses on NATO border to protect West Ukraine

Joe Weingarten, an expert from the Social Democratic Party of Germany (part of the governing coalition), called for using air defense systems stationed in...

Russian Machine-Building Giant STAN Unveils Advanced Lathe for Aircraft Parts

Since Western nations imposed sanctions against Russia, the country's machine-building industry has expanded dramatically. It is impossible to immediately replace all machine demands with...

US State Dept.: Russian Gains Slow, Outweighed by Ukrainian Defense  

Washington widely believes that Russian forces will persist in their efforts to advance, including in the vicinity of Kharkiv. However, significant breakthroughs from the...

Russia Warns of “New Shocks” After U.S. Bans Its Uranium Imports  

US President Joe Biden signed legislation prohibiting the entry of Russian uranium into the United States. Russian Ambassador Anatoly Antonov in Washington responded by...