Credit Suisse takeover: UBS seals rescue act

Banking major UBS is taking over Credit Suisse in a $3.25 billion deal that has been urged by regulators to protect the larger cause of the global banking system. The Swiss government is providing more than 100 billion francs to facilitate the deal. Post the takeover, UBS intends to sell off parts of Credit Suisse or reduce its size in the time to come. 

Earlier, a Credit Suisse attempt to appease customers and investors through a USD 54 billion debt proved in vain. Being one among 30 financial institutions revered as globally systemically important banks, the fallout of Credit Suisse had dire consequences which explains the regulatory intervention for the sake of stability in the global financial world.

• The combined new entity is largely seen as a decisive point in the history of Swiss banking although few critics have opined that the Credit Suisse fiasco has harmed the reputation of the country’s banking system
• Credit Suisse had $1.4 trillion assets under management with significant trading desks across the globe running a prosperous wealth management business 
• Interestingly, during the 2008 meltdown, Credit Suisse had no need for government support unlike its acquirer UBS

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