Credit Suisse to be Acquired by UBS, Confirms Swiss National Bank

UBS is set to acquire Credit Suisse in a bid to prevent a worldwide loss of trust in the financial industry.

Last week, Credit Suisse, an old and troubled bank, was on the verge of a financial disaster. Even though they were able to secure a $54 billion credit line from Switzerland's central bank, they still faced significant problems.

The decision to establish a credit line was made to ease the concerns of investors and individuals who deposit their funds, but it did not stop the wave of customers pulling out their money. As a result, the Swiss government asked UBS to contemplate acquiring the failing bank.

It's not entirely evident how much the acquisition is worth, but the Financial Times stated in a report that it's over $2 billion.

The agreement additionally encompasses a provision of 100 billion Swiss francs in funds to aid with financial stability for the two banks.

According to a declaration made by Swiss authorities and the central bank, the deal presents a resolution to preserve the economy of Switzerland during these extraordinary circumstances while ensuring financial stability.

Furthermore, there is an expectation that UBS's acquisition of its former competitor will prevent the spread of negative consequences that were observed during the economic downturn nearly a decade ago.

Credit Suisse is a massive wealth management institution, and it is among a group of 30 banks noted as systemically important. As a result, this agreement will probably have an impact on global markets on Monday.

It is among the biggest recruiters in the field of investment banking in the City of London and has a workforce of approximately 5,000 individuals.

The banking industry has experienced a challenging period recently, as witnessed by the downfall of Silicon Valley Bank and Signature Bank, both American financial institutions.

HSBC stepped in to save the UK division of SVB for a mere £1, yet several other medium-sized lenders from America have also required urgent financial assistance.