Swiss Officials , Reach Emergency Deal , to Save Credit Suisse.
On March 19, Swiss officials announced a last-minute deal for an emergency takeover of the troubled Credit Suisse by fellow banking titan UBS.
On March 19, Swiss officials announced a last-minute deal for an emergency takeover of the troubled Credit Suisse by fellow banking titan UBS.
NPR reports that Swiss president Alain Berset announced the deal, claiming it was critical for stabilizing the global banking sector.
NPR reports that Swiss president Alain Berset announced the deal, claiming it was critical for stabilizing the global banking sector.
According to the deal, UBS Group AG will make an all stock purchase of $3 billion for Credit Suisse.
According to the deal, UBS Group AG will make an all stock purchase of $3 billion for Credit Suisse.
As an additional bonus to the deal, the Swiss central bank will also reportedly give UBS an extra $100 billion.
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NPR reports that the last-minute emergency takeover of Credit Suisse comes as the latest evidence of ongoing banking troubles that began with , the collapse of Silicon Valley Bank.
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NPR reports that the last-minute emergency takeover of Credit Suisse comes as the latest evidence of ongoing banking troubles that began with , the collapse of Silicon Valley Bank.
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Prior to the latest deal being reached, the Swiss central bank had attempted to save Credit Suisse with a $54 billion lifeline loan.
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Prior to the latest deal being reached, the Swiss central bank had attempted to save Credit Suisse with a $54 billion lifeline loan.
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However, the sizable loan was not enough to stabilize the faltering financial institution.
NPR reports that the most worrisome aspects of Credit Suisse's recent troubles is that the bank is known as a "global systemically important bank.".
According to NPR, this means that the potential failure of Credit Suisse has the ability to send shockwaves throughout the global economy.
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Before becoming one of the most significant banks in the world, Credit Suisse was formed to help finance Switzerland's burgeoning rail network 166 years ago.
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Before becoming one of the most significant banks in the world, Credit Suisse was formed to help finance Switzerland's burgeoning rail network 166 years ago.
