Switzerland’s largest bank, UBS, acquired its rivalCredit SuisseThe crisis, following arduous negotiations, while the government announced the provision of major guarantees, hoping to avoidacute crisisAnd restore the “confidence” of investors all over the world.
From the US Treasury to the European Central Bank, many quarters were quick to welcome the move, fearing new turmoil in the markets that were weakened by the bankruptcy of the Silicon Valley bank in the United States.
The value of the deal is 3 billion Swiss francs (3.02 billion euros) payable in the form of shares, or 0.76 francs per share, following the value of Credit Suisse shares on Friday was 1.86 Swiss francs.
And on Sunday, Swiss President Alain Berset confirmed in a press conference in the presence of the heads of the two banks, Colm Kelleher for “UBS” bank and Axel Lehmann for “Credit Suisse” bank, that this solution “is not decisive for Switzerland only (…) but for the stability of the entire financial system.” ” Global.
Swiss Finance Minister Karin Keller-Sutter declared at the press conference that the bankruptcy of Credit Suisse would have caused “irreparable economic damage”, and continued: “Therefore, Switzerland must carry out its responsibilities beyond its borders.”
European Central Bank President Christine Lagarde welcomed the “quick action” of the Swiss authorities.
In the US, the US Treasury and the Federal Reserve expressed “satisfaction” with the move.
On Sunday, the central banks of the United States, Switzerland and other countries announced a concerted move to provide more liquidity to reassure markets in the midst of a crisis of confidence in the banking system.
The merger deal between the two giant banks, both of which are among the 30 banking institutions that are classified as too big to fail, had to be completed before the stock market opened at 8 am GMT Monday to avoid a wave of panic.
Observers hope that the move will be enough to spare the markets on Monday a widespread panic.
