Troubled bank Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal.

Sunday evening's announcement came after a weekend of emergency talks in Switzerland between the two banks and the country's financial regulators.

The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.

The Bank of England said it welcomed the "comprehensive set of actions".

Credit Suisse shareholders were deprived of a vote on the deal and will receive one share in UBS for every 22.48 shares they own, valuing the bank at $3.15bn (£2.6bn).

At the close of business on Friday Credit Suisse was valued at around $8bn (£6.5bn).

 

But the deal has achieved what regulators set out to do - secure a result before the financial markets opened on Monday.

What have banks and cops in common?

Qualified immunity and favorable oversight

13 hours ago, Social Media said:

Troubled bank Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal.

Now why would the UBS rescue a rival? Because they are such nice neighbors, and they want to help another bank? Or are they doing it because they think it's a smart business decision.

 

Obviously it's understandable if they buy the bank if they think that will make them even more money. But please don't call it "rescue".

 

58 minutes ago, OneMoreFarang said:

Or are they doing it because they think it's a smart business decision.

Until last week they were strictly against the idea.

But under pressure from the government and the huge contribution of ~100 billion Francs from tax payer money plus 9 billion "further guarantees" they gave in and pay the symbolic peanut price of about 3 billion Francs.

UBS itself was rescued with huge amount of tax payer money during the financial crisis of 2008. UBS was one of the worst gamblers at the time. They ruined the reputation of Swiss bancs as a save harbor.

That they burned a significant amount of my money with their asset management is just a side-note.

 

Thousands will loose their job. A 175 year old traditional name wiped out (Schweizerische Kreditanstalt, SKA later "globalized" with French "Credit Suisse", CS).

 

For your bemusement, study the list of CS scandals. Some have yellow-press character.

Like this one:

https://www.theguardian.com/business/2020/feb/07/credit-suisse-chief-tidjane-thiam-ousted-after-spying-scandal

A CEO (Thiam) almost getting into a  brawl with his wealth management head for neighborhood dispute. Then followed by spying on him.

Quote

Khan later clashed with Thiam’s partner during a cocktail party, in a disagreement that supposedly revolved around some trees planted on the Thiam property. During a subsequent confrontation, the two men had to be physically separated, Khan told the Swiss newspaper Tages-Anzeiger.