UBS buys Credit Suisse in urgent deal – POLITICO

FRANKFURT — Swiss banking giant UBS is to buy the country’s second-biggest bank, Credit Suisse, in a deal that will ease financial markets in Europe and around the world.

The first official announcement, from the Swiss National Bank, did not reveal the price of the transaction,

But UBS said in a later statement that the total price was 3 billion Swiss francs, or about $3.25 billion, in UBS shares.

“With the takeover of Credit Suisse by UBS, a solution has been found to ensure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss National Bank said in its statement, noting that the transaction was made. possible thanks to the support of the Swiss Confederation, the Swiss Financial Market Supervisory Authority FINMA and the Swiss National Bank.

Underscoring the urgency of reaching a deal for the bank before markets open on Monday, Swiss authorities adjusted laws to allow further liquidity injection by the Swiss central bank, while the government agreed to provide additional guarantees .

The 167-year-old Credit Suisse has been embroiled in a series of scandals that have shaken investor and customer confidence. It thus found itself in the eye of the storm when the collapse of Silicon Valley Bank in the United States raised fears of a banking crisis.