People say that UBS to take over Credit Suisse in an operation aimed at stemming what was fast becoming a global crisis of confidence. Credit Suisse, the embattled 167-year-old lender, found itself on the brink of financial catastrophe last week, despite obtaining a $54 billion line of credit from the Swiss central bank.
SKY News reported that the acquisition was announced on Sunday evening: UBS will pay 3 billion Swiss francs to acquire Credit Suissehas agreed to take up to 5 billion Swiss francs in losses, and both banks will have 100 billion Swiss francs in liquidity support.
The deal is expected to close later this year..
Meanwhile, European Central Bank (ECB) supervisors do not expect market turmoil to rub off on euro zone banks, a source familiar with the content of an ad hoc supervisory board meeting this week told Reuters. .
Besides, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank are taking coordinated steps to improve the provision of liquidity through permanent agreements of liquidity swap lines in dollars.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
