- The Swiss government has reached a pact with UBS over their protection amid the collapsed Credit Suisse bank takeover.
- The pact will come to effect as soon as the takeover is completed.
UBS and Swiss government reach an agreement over Credit Suisse take over
UBS and Swiss government have agreed to protect the investors amid the takeover of the collapsed banking giant Credit Suisse. The two announced on June 9, 2023, that they reached an agreement, which will take effect once the takeover of Credit Suisse is completed.
UBS and Swiss government deal will see the Swiss government cover up to 9 billion Swiss francs ($10B) following UBS’s acquisition of Credit Suisse.
“As part of the agreement, the Swiss government guarantees losses of up to CHF 9bn if realized on a designated portfolio of Credit Suisse non-core assets once UBS bears the first CHF 5bn of any realized losses,” UBS said in a statement.
They went ahead to say that they will manage the assets previously owned by Credit Suisse diligently to minimize losses which maximize value realization on them. Credit Suisse’s acquisition is expected to be completed as early as June 12 per UBS.
Developing story. Keep watching Fintech Express for updates as soon as they happen.