<p data-testid=”paragraph-1″ class=”text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__full_width__ekUdw body__large_body__FV5_X article-body__element__2p5pI text-align-start”>UBS agreed to buy rival Credit Suisse on Sunday, Reuters reported. UBS will pay 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses in a deal expected to close by the end of 2023.According to the Reuters report, In a sign of a coordinated global response, the U.S. Federal Reserve said it had joined with central banks in Canada, England, Japan, the EU and Switzerland in a coordinated action to enhance market liquidity. The European Central Bank vowed to support euro zone banks with loans if needed, adding the Swiss rescue of Credit Suisse was “instrumental” for restoring calm.On Thursday, <a href=”https://www.financemagnates.com/institutional-forex/swiss-crisis-credit-suisse-borrows-chf-50b-to-escape-liquidity-troubles/” target=”_blank” rel=”follow”>Credit Suisse confirmed</a> its intention to borrow up to CHF 50 billion (about $54 billion) from the Swiss National Bank to support liquidity and investor confidence after shares of the bank continued a steep downward momentum. Credit Suisse’s decision occurred after the Swiss regulators came forward with an emergency liquidity lifeline to pull out the lender from any potential crisis as the bank’s share price dropped around 30 percent on Wednesday.Credit Suisse, with assets of about CHF 530 billion ($573 billion), is the first major global bank to receive an emergency lifeline since the financial crisis in 2008. The lender was already in trouble after posting a yearly loss of CHF 7.3 billion, which is its biggest loss since the 2008 crisis. Moreover, it highlighted “material weaknesses” in its control and reporting processes over the past two years in a delayed report lodged in the United States. </p>
This article was written by Finance Magnates Staff at www.financemagnates.com.
