LONDON: Switzerland’s prime bank, UBS, has agreed to buy its sick rival Credit Suisse for $3.2 billion in an emergency rescue agreement intended at restricting the financial market alarm unleashed by the failure of two US banks in the current month. The UK government and European Central Bank welcomed the deal and termed it a good step for market stability.
UK, EU Central Bank Welcome Deal
UBS announced on Sunday the takeover of Credit Suisse, the Swiss National Bank said. It added the attempt would “secure financial stability” and provide security to the Swiss economy. Extraordinarily, the agreement will not need the consent of shareholders following the Swiss government agreed to amend the law to eliminate any uncertainty regarding the deal. According to CNN, Credit Suisse (CS) had been losing the trust of customers and investors for years.
The UK’s government also welcomed the measures taken by Switzerland to “assist financial stability” by helping the takeover of the anxious Credit Suisse by UBS. Finance minister Jeremy Hunt tweeted and said that London welcomes the measures taken today by Switzerland in relation to Credit Suisse to help financial stability.
The UK Government welcomes the steps taken today by the Swiss authorities in relation to Credit Suisse to support financial stability.
The Bank of England has confirmed the UK banking system remains safe, sound and well capitalised. https://t.co/r2H8iFB48u
— Jeremy Hunt (@Jeremy_Hunt) March 19, 2023
European Central Bank head Christine Lagarde has welcomed the “swift action” by Swiss officials after they announced an agreement for UBS to take over worried lender Credit Suisse.
Statement by ECB President Christine Lagarde https://t.co/eOjI4tBRPz pic.twitter.com/3KeymqdfVr
— European Central Bank (@ecb) March 19, 2023
In a statement, the president of the EU Central Bank said that they welcomed the deal and termed it instrumental for reinstating orderly market circumstances and ensuring monetary stability.
