Negotiations of this type usually take months, but Swiss authorities engineered the deal and put pressure on the UBS group to prevent the crisis of confidence in Credit Suisse from generating even more instability in the financial market.
In an attempt to calm the global market, the Swiss group UBS closed an agreement this Sunday, 19, for the redemption of the Swiss credit, your competitor. According to Financial Times, the amount to be paid will be US$ 3.25 billion. The Swiss central bank will provide substantial liquidity to the institution resulting from the merger between the banks, according to the agency. Reuters, which also claims that the UBS group agreed to assume up to US$ 5.4 billion in losses during the acquisition of the rival institution. Negotiations of this type usually take months, but the Swiss authorities engineered the agreement and put pressure on the UBS group to prevent the crisis of confidence in Credit Suisse from generating even more instability in the financial system. A Reuters he also says that the expectation is that the agreement will be completed by the end of this year. Credit Suisse is among the 30 largest banks in the world, and the sharp drop in shares in the last week has scared the market, already weakened by the crises in large institutions in the USA. At first, the Financial Times had announced that the UBS group would buy Credit Suisse for US$ 1 billion, but later it was reported that the offer was increased to more than US$ 2 billion. According to the Financial Times and Blick, the bank’s clients withdrew CHF10 billion in deposits in a single day at the end of last week, showing distrust of Credit Suisse.