Swiss authorities approve plan to help buy Credit Suisse
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The Swiss government has approved a plan to bail out Swiss financial holding UBS in the amount of $118 billion to buy out Credit Suisse. As reported on website Swiss government, these funds will be allocated in excess of the budget for 2023.
Reuters notes that the new owner of Credit Suisse should take responsibility for any future penalties to the credit institution. UBS will buy Credit Suisse shares at CHF0.5 each. The deal will amount to just over $2 billion.
On March 19, the Swiss National Bank announced the merger of the country’s two largest banks, UBS and Credit Suisse. The reason was the long-term financial problems of Credit Suisse, which ended 2022 with a loss of $ 7.9 billion – this is the bank’s worst result since 2008.
The merger between UBS and Credit Suisse will create one of the largest global systemically important financial institutions in Europe. UBS assets are estimated at $1.1 trillion, Credit Suisse – at $575 billion.
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