Credit Suisse, a 166-year-old Swiss bank that has become a threat to the global banking system, has been acquired by UBS AG for $3.25 billion. The President of Switzerland, Alain Berset, announced that the acquisition was necessary for the International Financial System. The acquisition has also been welcomed by the Federal Reserve and the European Central Bank.
Key takeaways from the Credit Suisse acquisition
USB AG is considered to be the largest bank in Switzerland. This deal between the two banks is all share. This includes several provisions for government guarantees and liquidity. Credit Suisse's share price in this deal has been fixed at $0.82 (0.76 Swiss francs), which is 99 percent less than the 2007 high.
UBS AG has issued a statement saying that after the deal, the total assets of the new company will be $ 5 trillion. There will also be $8 billion in cost reductions over the next four years.
This deal between the two banks happened at a time when SVB and Signature Bank have sunk in America.
The agreement between the two banks states that the central Swiss National Bank will lend $108 billion to Credit Suisse and UBS for liquidity.
Credit Suisse started in the 19th century. According to the bank's website, the bank was established on 5 July 1956. Today the business of the bank is spread over 50 countries.
Credit Suisse's name is included in the world's 30 leading financial institutions, which are essential for the world's financial stability.
After this deal, major central banks of the world have announced that steps will be taken to stabilize the banks.
Before the deal, the Swiss National Bank had loaned $54 billion to save Credit Suisse.
Recently, in its annual report by Credit Suisse, it was told that the bank had identified some weaknesses in the system, after which major investors had pulled back from the bank.
Credit Suisse will have 1.6 trillion Swiss francs in assets and 50,000 employees by 2021.
As evening approaches, high voltage drama has started in Delhi. The Enforcement Directorate team
Dunki: Connection of 'Dunki' with 'Jawan', Shah Rukh Khan unveils his character in the film?
Shah Rukh Khan On Dunki Trailer: Shah Rukh Khan, who has given explosive films like 'Pathan and J
The film 'Udaipur Files' is in the headlines these days. Recently, the Delhi High Court had banne
Veteran actor Dharmendra has been discharged from the hospital. Bobby Deol took him home in an am
The Tis Hazari court on Friday sent Chief Minister's aide Bibhav Kumar to 14-day judicial custody
Home Minister Amit Shah fiercely targeted Delhi Chief Minister Arvind Kejriwal. Regarding th
Amid the debate over longer working hours, Economic Advisory Council to the Prime Minister (EAC-P
With the action-adventure film Indiana Jones and the Dial of Destiny, the franchise's popular cha
Aam Aadmi Party MLAs created a ruckus during the address of Lieutenant Governor VK Saxena in the
Since the bursting of firecrackers on Diwali night and increasing incidents of stubble burning in
