Swiss National Bank, Swiss Government, and Swiss Financial Market Supervisory Authority Unite to Rescue UBS and Credit Suisse

The Swiss National Bank, Swiss government, and Swiss Financial Market Supervisory Authority have worked together to bring about the combination of Switzerland’s two largest banks, UBS and Credit Suisse. UBS has agreed to buy Credit Suisse for 3 billion Swiss francs ($3.2 billion).

The Swiss National Bank said in a statement that the takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority and the Swiss National Bank. The statement noted that the rescue would “secure financial stability and protect the Swiss economy.”

Credit Suisse shareholders will be largely wiped out, receiving only a fraction of their original investment. UBS is paying 60% less than the bank was worth when markets closed on Friday.

The Swiss National Bank said that the combination of the two banks was necessary in order to protect the Swiss economy in this “exceptional situation.” The central bank noted that the takeover was necessary to “secure financial stability” and to prevent a contagion from spreading throughout the global banking system.

The Swiss government, Swiss Financial Market Supervisory Authority, and Swiss National Bank have worked together to bring about the combination of Switzerland’s two largest banks, UBS and Credit Suisse. The takeover was made possible with the support of the Swiss federal government, the Swiss Financial Market Supervisory Authority and the Swiss National Bank. The rescue is expected to “secure financial stability and protect the Swiss economy” in this “exceptional situation.” Credit Suisse shareholders will be largely wiped out, receiving only a fraction of their original investment. UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse, about 60% less than the bank was worth when markets closed on Friday.