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.
Jailer: Rajinikanth's 'Jailer' could not be released in Hindi till now, know here what is the reason
Rajinikanth's film 'Jailer' has been released in theaters on the previous day. With this film, 'R
Salman Khan Tiger 3 Box Office Record: If we talk about mega superstars of Hindi cinema, Salman K
The news of "Ya Ali" singer Zubin Garg's death shocked everyone. According to reports, Zubin Garg
For the past several days, news has been coming about the parents of late Punjabi singer Siddhu M
Ileana D'Cruz Pregnancy News: Barfi fame actress Ileana D'Cruz announced her pregnancy on 18 Apri
Faults have been found in the electricity meter installed by SP MP Ziaur Rahman Bark and former M
Various Union Ministers of State have been assigned responsibilities to receive foreign guests ar
There has been a new twist in the murder of Congress worker Himani Narwal. The statement of Direc
The first season of the popular web series 'Made in Heaven' premiered in 2019. The audience liked
Recently Prabhas's film 'Kalki 2898 AD' has been released. This film is getting a positive respon
