Categories: Business

UBS agrees to buy crisis-hit Credit Suisse for $3.2 billion in historic deal

To prevent further turmoil in the global banking system, Swiss authorities have orchestrated a shotgun merger between UBS and Credit Suisse, with UBS agreeing to buy its rival for 3 billion Swiss francs ($3.23 billion) and assuming up to $5.4 billion in losses.

The regulators’ intervention was prompted by concerns that a crisis of confidence in Credit Suisse could have a widespread impact on the financial system. The deal is expected to be completed by the end of 2023.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

More About The UBS Group acquiring Credit Suisse:

The Swiss government was determined to avoid the negative publicity associated with bailing out a systemically important global bank, as happened during the 2008 financial crisis. However, some leading commentators have labeled the UBS takeover of Credit Suisse as a bailout, suggesting that some important lessons have not been learned from the 2008 crisis.

Significance of this development:

To prevent any negative effects on the broader financial system resulting from the takeover of the crisis-hit Credit Suisse by UBS, the Swiss National Bank (SNB) has agreed to provide UBS with $108 billion in loans as liquidity assistance under the agreement. Furthermore, Swiss authorities have also agreed to “absorb” some of the losses that UBS will have to bear as part of the deal.

Piyush Shukla

Recent Posts

Battle of Plassey (1757): The Event That Changed India’s History

The Battle of Plassey happened on 23rd June 1757. It is considered to be among…

7 minutes ago

World Brain Tumour Day 2026: Importance, History, Symptoms and Prevention

Brain Tumour World Day is observed annually on June 8th to promote the importance of…

7 minutes ago

World Oceans Day 2026: Date, Theme, Importance and Key Facts

Every year, World Oceans Day is celebrated on June 8 to acknowledge the significance of…

22 minutes ago

Lok Sabha Passes MSME Bill 2026 to Tackle Delayed Payments

The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 has received parliamentary approval after…

57 minutes ago

SC/ST Creamy Layer: Centre’s Stand Before Supreme Court Explained

The Centre has informed the Supreme Court of India that the concept of ‘creamy layer’…

2 hours ago

Delhi Vidya Vahini Scheme: Benefits, Eligibility, Documents & Complete Guide With Steps

Delhi Vidya Vahini Scheme 2026 is a initiative by the government of Delhi that focuses…

2 hours ago