Since last Wednesday the Credit Suisse bank has been facing speculations and has been at the centre of a worldwide economic crisis.
Tonight the government anounced that UBS will be taking over the Credit Suisse and the Swiss National Bank is guaranteing 100 billion francs in liquidity assistance for both banks. The government guarantees a further 9 billion francs for losses UBS could be incurring as a consequence of the take-over.
Very probably UBS will be taking the bank apart, merging some of their products into the UBS and selling some onto other financial organisations. Further job losses within Credit Suisse are to be expected.
Colm Kelleher, Chairman of the Board of Directors of UBS explains: “This integration ensures the future of the Swiss financial centre.” UBS will greatly reduce Credit Suisse’s investment arm and adapt it to the bank’s “conservative asset management culture”.
What does this mean for Credit Suisse’s private clients?
Both banks are assuring customers that their investments remain safe. Over the coming weeks customers will be informed about any changes being made.
This decision was made in the hope to stabilise the financial market both nationally and internationally.
