City AM – It’s a Swiss rescue
UBS agrees to buy Credit Suisse to avoid “unthinkable” consequences
CITY AM says THE SWISS government last night brokered a discount $3bn (£2.6bn) deal that will see UBS rescue Credit Suisse from bankruptcy and avoid “irreparable” damage to the global financial system.
In an extraordinary press conference last night, the Swiss President said deposit outflows on Friday at Credit Suisse on Friday meant it was “no longer possible to restore the necessary confidence” in the bank and that a “stabilising” solution was required.
“This solution is a takeover of Credit Suisse by UBS,” Alain Berset said, adding that the historic bank’s failure would have had “unthinkable consequences for Switzerland and the international markets.”
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