Credit Suisse: How the 166-year-old bank reached this condition, 10 key things about the deal with UBS

Posted on 20th Mar 2023 11:02 am by rohit kumar

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.


Also Read: Sri Lanka Strike: Labor organizations in Sri Lanka called a nationwide shutdown; Livelihood affected, the President said this

1 Like 0 Dislike
Previous news Next news
Other news

RCB vs KKR: Russell's clever mind came in handy, Narine lived up to expectations; Captain Shreyas Iyer told the master plan to defeat RCB

Kolkata Knight Riders once again dominated on Chinnaswamy's ground. Shreyas Iyer's team unilatera

PSEB 5th Class Result 2023: Punjab Board class fifth result released, know where and how to check

Punjab School Education Board announced PSEB 5th Class Result 2023: Punjab School Education Board

IND vs AUS: Siraj gave such a wound to Usman Khawaja, which the Australian batsman will never forget

The World Test Championship final is being played between India and Australia (IND vs AUS). Austr

Crew: Kareena, Kriti, and Tabu's 'Crew' will blow away the box office, releasing in more than 75 countries

The 'crew' of Kareena Kapoor, Kriti Sen, and Tabu is ready to rock. The film is going to hit the

Pushpa 2: This legendary cricketer will have a cameo in Pushpa 2? Tagging Allu Arjun, he said- 'I am eagerly waiting...'

Pushpa 2: The craze for the 2021 blockbuster film Pushpa The Rise was seen all over the world. Na

Yodha OTT Release: Make weekend plans, Siddharth Malhotra's 'Yodha' streamed on OTT, know the details

Siddharth Malhotra's film Yodha (Yodha OTT Release) has now been released on OTT after

Nz vs Aus 1st Test: Cameron Green became the messiah for Australia, and created a stir by scoring a stormy century

The first Test of the two-match Test series between New Zealand vs Australia (NZ vs AUS) is being

Union Bank of Switzerland: UBS buys Credit Suisse for $3.23 billion, Swiss government announces

Switzerland's UBS Group has bought the troubled Credit Suisse bank for $3.23 billion. The governm

PM Modi: PM Modi called these four castes the biggest, and lashed out heavily on these issues including the 'arrogant' alliance; Read

Prime Minister Narendra Modi reached BJP headquarters after BJP's landslide victory in Madhya Pra

I.N.D.I.A. I burst into tears again! Congress enraged by Mamata's participation in the G-20 dinner ceremony, TMC also responded

President Draupadi Murmu organized a dinner program on the occasion of the G 20 Summit. In this d

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS

Play Free Quiz and Win Cash