UBS bank agreed to pay $2 billion for Credit Suisse

It followed a weekend of intense negotiations between the two banks, the government, the central bank and the regulator.

Swiss bank UBS has agreed to buy ailing rival Credit Suisse for just over $2 billion, following a weekend of intense negotiations between the two banks, the government, the central bank and the regulator, the newspaper reported today. Financial Times.

As part of the deal, the parties involved have agreed to amend the law to prevent this purchase decision from being put to a vote by UBS shareholders, according to the source.

The Swiss Executive has announced a press conference in the next few hours, supposedly with the intention of announcing the agreement, for which the purchasing bank would have required various guarantees.

While UBS was valued this Friday at market close at 56,000 million, its competitor was around 8,000 million capitalization. That means that UBS will pay almost a quarter of what it was worth on the Credit Suisse Stock Exchange just a couple of days ago.

UBS was valued this Friday at 56,000 million and its competitor was around 8,000 million capitalization. Photo Reuters

The pact creates one of the largest banks in Europe, and serves to end the confidence crisis that was bleeding Credit Suisse dry. The Zurich-based entity already saw deposit leaks in the last quarter of 2022.

Although the Swiss National Bank insisted this week that it was broadly meeting capital and liquidity requirements, customer fears that the bank’s situation would worsen with their savings inside was fueling further money flight amid the tidal wave of reports. negative.

That has made Credit Suisse’s continuation on its own untenable. The brand has gone from being synonymous with reliability to becoming a source of suspicion, damaging the reputation of the once unimpeachable Swiss bank, and becoming a liability to the entire industry.

Source: EFE

PB

look also