Credit Suisse is experiencing difficulties due to its internal problems, exacerbated by the unfavorable international situation in the sector.
UBS has negotiated the purchase of Credit Suisse for more than 2,000 million dollars in a historic agreement mediated by the Swiss Government and designed to contain the crisis of confidence that has been spreading in international banking.
The Financial Times reports that the Swiss National Bank is giving UBS access to liquidity worth 100,000 million dollars as part of the deal. While the authorities will amend the laws to dispense with shareholder voting, the outlet reports, citing sources related to the subject.
A few hours earlier, the Bloomberg agency reported citing sources familiar with the matter that Credit Suisse rejection the offer of 1,000 million francs (about 1,100 million dollars) that the largest Swiss bank had raised as too low and harmful to shareholders.
Credit Suisse’s valuation was estimated at around 7.4 billion francs (more than 8,000 million dollars) at the close of markets on Friday.
The deal results from negotiations facilitated this weekend by the Swiss National Bank and regulator Finma in an attempt to reach a solution for the country’s second-largest bank.
Credit Suisse is experiencing difficulties due to its internal problemsincreased by the unfavorable international situation in the sector.
The firm suffered this week significant losses as a result of the banking crisis affecting the US and after its main shareholder, the Saudi National Bank, announced that it would not inject more money into the entity.
In this context, the Swiss central bank was forced to lend 50 billion francs (about $53.6 billion) to Credit Suisse.
However, the financing granted by the regulator has not been able to stabilize the price of the shares of the financial institution.