
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.
JAC 9th Result 2023: JAC released the 9th result, you can check your result by clicking here
Jharkhand Academic Council JAC has declared the 9th class result. This time a total of 97.8 perce
The second match of the five-match Test series between India and England will be played at Edgbas
In the first match of the three T20 match series between India and England, India had to face def
Congress President Mallikarjun Kharge, Sonia Gandhi, and party leader in Lok Sabha Adhir Ranjan C
On the second day of the second Test match between India and South Africa in Guwahati, Indian cap
The Supreme Court has stayed the order of the Yogi government, in which instructions were issued
Bangalore police reached Jaunpur on Thursday in the case of Atul Subhash's suicide. A four-member
Big news for the students of senior classes in schools across the country. The central government
The language dispute in Tamil Nadu is deepening. Now BJP's Tamil Nadu unit president K Annamalai
The countdown to the T20 World Cup has begun. The tournament is starting from June 2 as per India