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.
Indian team fast bowler Mohammad Siraj has reported 'corrupt thinking' to BCCI's anti-corruption
New revelations are being made every day in the Baba Siddique murder case. Now it is being told t
Delhi Blast 2025 Lieutenant Governor (LG) VK Saxena directed the Police Commissioner and Chief Se
Shah Rukh Khan Film Jawan Preview Out: Shah Rukh Khan's fans are eagerly waiting for his next fil
Indian rapper Raftaar has accused Canadian rapper Tommy Genesis of hurting religious sentiments i
Syed Mustafa Kamal, an MP from Pakistan, has praised India wholeheartedly. The Pakistani MP said
Actor-turned-politician Vijay is in the news regarding his last film, 'Jan Nayakan'. After facing
The heat of the sun is increasing all over the country. The mercury has started rising due to the
Britain's prestigious Oxford University has agreed to return a 500-year-old bronze statue of a sa
India vs Canada issue Canada has made several allegations against India regarding the murder of K
