liquidity assistance

According to reports, under the mediation of the Swiss government, UBS agreed to acquire rival Credit Suisse for 3 billion Swiss francs and agreed to bear losses of up to $5.4 billion. UBS said that the 22.48 shares held by its shareholders would be exchanged for one UBS share, equivalent to 0.76 Swiss francs per share, for a total consideration of 3 billion Swiss francs. The transaction is expected to be completed by the end of 2023, with annual cost savings of approximately $7 billion by 2027. The Swiss Central Bank said it would provide liquidity assistance of 100 billion Swiss francs ($108 billion) to the merged banks. The Swiss Financial Market Supervisory Authority (FINMA) stated that all business activities of the two banks would likely continue without restriction or interruption. With the support of the Swiss government, Credit Suisse’s additional Tier 1 capital bond (AT1) with a nominal value of approximately 16 billion Swiss francs ($17.2 billion) will be…

According to reports, the Swiss Central Bank said that UBS announced its acquisition of Credit Suisse today. Significant liquidity assistance will be provided to support UBS’s acquisition of Credit Suisse. Both UBS and Credit Suisse have unrestricted access to the existing facilities of the Swiss Central Bank. The acquisition was achieved with the support of the Swiss Federal Government, the Swiss financial market regulator Finma, and the Swiss Central Bank. The Swiss Central Bank said it could provide up to 100 billion Swiss francs of liquidity assistance loans to Credit Suisse and provide federal default guarantees. Swiss Central Bank: Can provide up to 100 billion Swiss francs of liquidity assistance loans to Credit Suisse Analysis based on this information:UBS, one of the largest investment banks in the world, has acquired Credit Suisse, another Swiss bank, as reported by the Swiss Central Bank. This acquisition is significant news, as it indicates a consolidation in the Swiss banking sector. To support this…