UBS bank has agreed to pay $2 billion to Credit Suisse

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UBS Swiss Bank agreed to buy struggling rival Credit Suisse for just over $2 billionafter a weekend of intense negotiations between the two banks, the government, the central bank and the regulatory body, the Financial Times newspaper reported today.

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As part of the settlement, the parties involved have agreed a change in legislation to prevent this purchase decision from being put to a vote by UBS shareholders, according to the source.

The Swiss executive has called a press conference in the next few hours, presumably with the intention of announcing the agreement, for which the acquiring bank I would have demanded several guarantees.

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While UBS was valued this Friday at market close at 56,000 million, its competitor was about 8,000 million in capitalization. That means UBS will pay nearly a quarter of what it was worth to the Credit Suisse Stock Exchange just a couple of days ago.

UBS was valued this Friday at 56,000 million and its competitor had a capitalization of about 8,000 million.  Reuters photo

UBS was valued this Friday at 56,000 million and its competitor had a capitalization of about 8,000 million. Reuters photo

The pact creates one of the largest banks in Europe, and serves to end the crisis of confidence that was draining Credit Suisse. The Zurich-based entity has already seen deposit leaks in the last quarter of 2022.

Although the Swiss National Bank insisted this week that it was broadly meeting capital and liquidity requirements, customer fears that the bank’s situation would worsen with their savings inland were fueling further cash flight among the Swiss National Bank. wave of negative reports.

This made the continuation of Credit Suisse on its own untenable. The brand has gone from being synonymous with reliability become a source of suspiciondamaging the reputation of Swiss banks, once spotless, and becoming a liability for the entire sector.

Source: Clarin

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