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.
PM Modi will visit France today will attend the AI summit; Rafale deal may be discussed
Prime Minister Narendra Modi will be on a three-day visit to France from Monday at the invitation
In the past few days, gold and silver have been setting new records every day. However, today, af
Anil Sharma Plans to Send Gadar 2 to Oscars: No one had imagined the success of Sunny Deol and Am
The debate in the country has not ended since the reaction of L&T Chairman SN Subramanian on
Indian team's experienced all-rounder Ravindra Jadeja was not aware of the team's former off-spin
Meg Lanning-led Delhi Capitals defeated Mumbai Indians in the 12th match of the Women's Premier L
BJP leader Devendra Fadnavis will be the next CM of Maharashtra. Devendra Fadnavis' name has been
This was Sunita Williams' first reaction after returning to Earth, NASA released the video.
Astronaut Sunita Williams has returned to Earth. After spending 9 months and 14 days in space, Su
When the entire opposition was adamant on the demand for discussion under Rule 267 and creating a
The CAG report on the Mohalla clinics operated during the AAP government's tenure in the capital,
