Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland.

The hastily arranged takeover by Zurich-based UBS, for which Switzerland invoked emergency legislation, bypassed Credit Suisse shareholders, who would otherwise have had a say, and all but wiped them out.

Credit Suisse was 167-year-old bank founded by Alfred Escher, a Swiss magnate who was affectionately nicknamed King Alfred the First. Escher helped build country's railways and then the bank.

Protesters gathered outside the concert venue where the meeting took place, with some erecting a capsized boat to depict the bank's demise.

Inside, chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief "until the beginning of the fateful week" that it could survive.

After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities.

"I can understand the bitterness, the anger and the shock of all those who are disappointed, overwhelmed and affected by the developments," Lehmann said at the Hallenstadion, Zurich's biggest indoor arena.

With the bank's share price in free-fall and fearing an imminent collapse that could have triggered an international banking crisis, the Swiss government, the central bank and the financial regulators strongarmed UBS into taking over Credit Suisse on March 19.

(With inputs from agencies)

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Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland.

Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland. The hastily arranged takeover by Zurich-based UBS, for which Switzerland invoked emergency legislation, bypassed Credit Suisse shareholders, who would otherwise have had a say, and all but wiped them out. Credit Suisse was 167-year-old bank founded by Alfred Escher, a Swiss magnate who was affectionately nicknamed King Alfred the First. Escher helped build country's railways and then the bank. Protesters gathered outside the concert venue where the meeting took place, with some erecting a capsized boat to depict the bank's demise. Inside, chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief "until the beginning of the fateful week" that it could survive. After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities. "I can understand the bitterness, the anger and the shock of all those who are disappointed, overwhelmed and affected by the developments," Lehmann said at the Hallenstadion, Zurich's biggest indoor arena. With the bank's share price in free-fall and fearing an imminent collapse that could have triggered an international banking crisis, the Swiss government, the central bank and the financial regulators strongarmed UBS into taking over Credit Suisse on March 19. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Credit Suisse chairman apologises for bank's demise in last shareholders' meeting

The bank created by UBS's stakeholder of Credit Suisse is reportedly planning to cut its Workforce by 20 to 30 percent, the Swiss daily reported. UBS agreed to acquire credit Suites for 3.3 billion dollars to prevent a meltdown in Switzerland's Financial system that was also to ensure Financial stability globally, however the merger of two banks with 1.6 trillion dollars in assets and over 120 000 employees worldwide has sparked concerns about the size of the new bank the job cards are expected to impact around 11 000 jobs in Switzerland where the two Banks had previously employed slightly over 72 000 to 50 000 people respectively.

UBS to reduce workforce by 20-30 % after Credit Suisse buy

The hastily arranged alliance of Credit Suisse and UBS could trigger a loss of 36,000 jobs across the world, according to German media. The management brought in to wade through the stormy waters of the merger may be looking to cut between 20 per cent to 30 per cent of the workforce, meaning somewhere between 25,000 to 36,000 could end up losing their jobs, reported SonntagsZeitung.

The hastily arranged alliance of Credit Suisse and UBS could trigger a loss of 36,000 jobs across the world, according to German media. The management brought in to wade through the stormy waters of the merger may be looking to cut between 20 per cent to 30 per cent of the workforce, meaning somewhere between 25,000 to 36,000 could end up losing their jobs, reported SonntagsZeitung. UBS and Credit Suisse employ 72,000 and 50,000 people worldwide respectively. Switzerland, the base of Credit Suisse, may alone see a cut of 11,000 jobs. Meanwhile, jobs in the US could also be at severe risk, the publication stated. The release of the report comes in the same week when UBS announced it was bringing its former chief executive Sergio Ermotti to handle the absorption of troubled rival Credit Suisse. WATCH | Why you should be worried if Credit Suisse collapses Apart from thousands losing their jobs, investors have also lost billions. Reportedly, over $17.3 billion worth of bonds issued by Credit Suisse bank have become worthless after UBS came in with the takeover bid. Under the takeover deal, UBS will be writing down the bank's additional tier 1 (AT1) bonds to increase core capital. “The extraordinary government support will trigger a complete write-down of the nominal value of all AT1 shares of Credit Suisse in the amount of around 16 billion [Swiss francs],” said Swiss regulator FINMA. The AT1 bonds were primarily created for the failing banks to absorb losses, thereby reducing the chances of a taxpayer-funded bailout. Because of the higher risks, the AT1 bonds provided a greater yield than most other bonds and they became a quick favourite of institutional investors. ALSO READ | Over $17 billion worth of bonds become zero after Credit Suisse takeover by UBS After reports came in that Credit Suisse had collapsed, the Swiss government stepped up and arranged a takeover by the UBS Group for $3.25 billion. The takeover was aimed at preventing economic turmoil from spreading throughout the country and beyond. (With inputs from agencies) WATCH WION LIVE HERE:

Hastily arranged marriage of UBS-Credit Suisse could lead to loss of 36,000 jobs: Report

UBS said Wednesday that it's bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse.

Ermotti, who was the bank's top executive for nine years and led a turnaround following the 2008 global financial crisis, will take over next Wednesday from CEO Ralph Hamers.

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Hamers took up the job in November 2020 and will remain at UBS during a transition period "to ensure a successful closure of the transaction and a smooth handover," the bank said in a statement.

UBS credited Ermotti, who is now chairman of insurer Swiss Re, for having "cut its footprint" and changing the culture of the bank&nbsp;and it pointed to his experience in bringing big financial institutions together.

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The hastily arranged, USD 3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two US banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland's second-largest bank to tank and customers to pull out their money.

Swiss authorities urged UBS to take over its smaller rival after the central bank's plan for Credit Suisse to borrow up to 50 billion francs (USD 54 billion) failed to reassure investors and customers. The Swiss executive branch passed emergency measures to bypass shareholder approval.

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UBS Chairman Colm Kelleher said Wednesday that he called Ermotti shortly after the emergency deal was arranged on March 19, which involved Swiss regulators, the federal government and top executives at both banks.

"This is the biggest single financial transaction since 2008. That brings significant execution risk," Kelleher said on a conference call.

Swiss lawmakers and academics have raised concerns that the deal could create an unwieldy Swiss banking behemoth, while UBS executives said regulatory issues loom internationally before the deal can close.

Many Credit Suisse customers have expressed regret at the looming disappearance of a 167-year-old bank that has been a pillar of Switzerland's renowned banking and financial industry. 
 
(With inputs from agencies) 
 
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UBS said Wednesday that it's bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse.

UBS said Wednesday that it's bringing back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with a government-orchestrated plan to take over struggling rival Credit Suisse. Ermotti, who was the bank's top executive for nine years and led a turnaround following the 2008 global financial crisis, will take over next Wednesday from CEO Ralph Hamers. Also Read | Marriage a license to rape? India's top court to hear pleas on marital rape; these countries criminalise it Hamers took up the job in November 2020 and will remain at UBS during a transition period "to ensure a successful closure of the transaction and a smooth handover," the bank said in a statement. UBS credited Ermotti, who is now chairman of insurer Swiss Re, for having "cut its footprint" and changing the culture of the bank and it pointed to his experience in bringing big financial institutions together. Also Read | Nashville school shooter sent a cryptic warning text to ex-classmate, it only makes sense now The hastily arranged, USD 3.25 billion deal for Credit Suisse aimed to stem the upheaval in the global financial system after the collapse of two US banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland's second-largest bank to tank and customers to pull out their money. Swiss authorities urged UBS to take over its smaller rival after the central bank's plan for Credit Suisse to borrow up to 50 billion francs (USD 54 billion) failed to reassure investors and customers. The Swiss executive branch passed emergency measures to bypass shareholder approval. Watch | Israel protests: US President Joe Biden urges Netanyahu to abandon judicial overhaul × UBS Chairman Colm Kelleher said Wednesday that he called Ermotti shortly after the emergency deal was arranged on March 19, which involved Swiss regulators, the federal government and top executives at both banks. "This is the biggest single financial transaction since 2008. That brings significant execution risk," Kelleher said on a conference call. Swiss lawmakers and academics have raised concerns that the deal could create an unwieldy Swiss banking behemoth, while UBS executives said regulatory issues loom internationally before the deal can close. Many Credit Suisse customers have expressed regret at the looming disappearance of a 167-year-old bank that has been a pillar of Switzerland's renowned banking and financial industry. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UBS brings back Sergio Ermotti as CEO for Credit Suisse takeover after deal

Credit Suisse Group AG was one of the stalwarts of the global financial system. Once deemed too big to fail, the Switzerland-based lender has now gone kaput.

It started with its shares falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.25 billion. The deal was overseen by the Switzerland government and the country’s central bank, which were desperate to get a buyer in a bid to restore confidence in the country’s banking system.

The Swiss government said it regretted that Credit Suisse “wasn’t able to master its own difficulties — that would have been the best solution.”

&nbsp;“Unfortunately, the loss of confidence from the markets and customers was no longer able to be halted,” Finance Minister Karin Keller-Sutter said at a press conference in Bern on Sunday.

Designated as one of the world’s 30 systemically important banks, the 166-year-old lending institution succumbed to the financial turmoil triggered by the fall of Silicon Valley Bank in the US, which had itself become victim to Fed’s tightening monetary policy and fall in its share value.

Before succumbing to the global financial crisis, Switzerland’s second-biggest bank survived without a bailout, unlike many of its peers. It had more than $ 1 trillion in assets, but years after, they dwindled to about US$580 billion—roughly half of UBS’.

How it did go under the hammer?

For two years, Credit Suisse has been braving turmoil one after the other. It has weathered a period of market crises, executive turnover and financial losses.

Most notably, its difficulties&nbsp;started due to its connection to the separate collapses of now-bankrupt Greensill Capital and&nbsp;Bill Hwang’s Archegos Capital Management.

In 2021, Credit Suisse&nbsp;took a $5 billion hit&nbsp;due to the collapse of Archegos, which was equivalent to more than a year’s worth of profit, according to the Wall Street Journal (WSJ) newspaper.

In October, a report on the bank’s financial health drove out outflows of rich clients, Credit Suisse executives said.&nbsp;

The withdrawals continued through the end of the quarter and prompted the bank to reach out personally to more than 10,000 wealthy customers to reassure them of the bank’s health.

Last year, deposits fell 40 per cent to $252 billion. Whereas, total assets dropped 30 per cent to $571 billion, because the bank was, among other things, scaling back its businesses.

In 2022, Credit Suisse reported a net loss of $7.8 billion, after posting a net loss of $1.8 billion a year before.

Settling old disputes

In 2022, it had to pay fines related to mortgage-backed securities and to avoid the prosecution for money laundering.

In October, Credit Suisse said it would pay $495 million to settle a row with the US state of New Jersey over mortgage-backed securities dating back to the 2008 financial crisis.

In the same month in France, the bank agreed to pay $252 million to avoid prosecution on money laundering and tax fraud charges brought in 2016 over undeclared accounts held by French nationals.

‘Material weaknesses’

Credit Suisse had to postpone its annual report, which was scheduled to be published last week, after a last-minute call from the US Securities and Exchange Commission over revisions made to cash-flow statements for 2019 and 2020.

But after it released the report on Tuesday, the bank acknowledged "material weaknesses" in its internal controls.

Following fears of contagion from the collapse of two US banks, comments from Credit Suisse's main shareholder on Wednesday that it would not invest more money in the bank sparked market panic.

How is Credit Suisse different from SVB?

Unlike Silicon Valley Bank which was a regional institution serving US venture capitalists and technology startups, Credit Suisse mainly managed money for people with millions of dollars to invest.

The Switzerland bank had billionaires and sovereign wealth funds among its biggest clients. Most of its loan portfolio is in ultraconservative Switzerland, where it was the country’s No. 2 bank by assets, serving savers and companies. It also had large investment banking and asset management arms.

It is considered a systemically important bank by global regulators given its size and interconnectedness with the financial system.

Fall of Credit Suisse: Implications for global banking system

Credit Suisse was deeply integrated into the global financial system. It was working closely with a number of banks and institutional investors. In the past week, European banking stocks fell due in part to investor fears of contagion.

On a broader level, the problems of SVB and Credit Suisse have led investors to think that the Federal Reserve might stall or revert its plans to further raise interest rates to tame inflation.

(With inputs from agencies)

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Credit Suisse Group AG was one of the stalwarts of the global financial system. Once deemed too big to fail, the Switzerland-based lender has now gone kaput. It started with its shares falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.

Credit Suisse Group AG was one of the stalwarts of the global financial system. Once deemed too big to fail, the Switzerland-based lender has now gone kaput. It started with its shares falling on Wednesday and by Sunday, it was sold to its domestic rival UBS for $3.25 billion. The deal was overseen by the Switzerland government and the country’s central bank, which were desperate to get a buyer in a bid to restore confidence in the country’s banking system. The Swiss government said it regretted that Credit Suisse “wasn’t able to master its own difficulties — that would have been the best solution.” “Unfortunately, the loss of confidence from the markets and customers was no longer able to be halted,” Finance Minister Karin Keller-Sutter said at a press conference in Bern on Sunday. Designated as one of the world’s 30 systemically important banks, the 166-year-old lending institution succumbed to the financial turmoil triggered by the fall of Silicon Valley Bank in the US, which had itself become victim to Fed’s tightening monetary policy and fall in its share value. Before succumbing to the global financial crisis, Switzerland’s second-biggest bank survived without a bailout, unlike many of its peers. It had more than $ 1 trillion in assets, but years after, they dwindled to about US$580 billion—roughly half of UBS’. How it did go under the hammer? For two years, Credit Suisse has been braving turmoil one after the other. It has weathered a period of market crises, executive turnover and financial losses. Most notably, its difficulties started due to its connection to the separate collapses of now-bankrupt Greensill Capital and Bill Hwang’s Archegos Capital Management. In 2021, Credit Suisse took a $5 billion hit due to the collapse of Archegos, which was equivalent to more than a year’s worth of profit, according to the Wall Street Journal (WSJ) newspaper. In October, a report on the bank’s financial health drove out outflows of rich clients, Credit Suisse executives said. The withdrawals continued through the end of the quarter and prompted the bank to reach out personally to more than 10,000 wealthy customers to reassure them of the bank’s health. Last year, deposits fell 40 per cent to $252 billion. Whereas, total assets dropped 30 per cent to $571 billion, because the bank was, among other things, scaling back its businesses. In 2022, Credit Suisse reported a net loss of $7.8 billion, after posting a net loss of $1.8 billion a year before. Settling old disputes In 2022, it had to pay fines related to mortgage-backed securities and to avoid the prosecution for money laundering. In October, Credit Suisse said it would pay $495 million to settle a row with the US state of New Jersey over mortgage-backed securities dating back to the 2008 financial crisis. In the same month in France, the bank agreed to pay $252 million to avoid prosecution on money laundering and tax fraud charges brought in 2016 over undeclared accounts held by French nationals. ‘Material weaknesses’ Credit Suisse had to postpone its annual report, which was scheduled to be published last week, after a last-minute call from the US Securities and Exchange Commission over revisions made to cash-flow statements for 2019 and 2020. But after it released the report on Tuesday, the bank acknowledged "material weaknesses" in its internal controls. Following fears of contagion from the collapse of two US banks, comments from Credit Suisse's main shareholder on Wednesday that it would not invest more money in the bank sparked market panic. How is Credit Suisse different from SVB? Unlike Silicon Valley Bank which was a regional institution serving US venture capitalists and technology startups, Credit Suisse mainly managed money for people with millions of dollars to invest. The Switzerland bank had billionaires and sovereign wealth funds among its biggest clients. Most of its loan portfolio is in ultraconservative Switzerland, where it was the country’s No. 2 bank by assets, serving savers and companies. It also had large investment banking and asset management arms. It is considered a systemically important bank by global regulators given its size and interconnectedness with the financial system. Fall of Credit Suisse: Implications for global banking system Credit Suisse was deeply integrated into the global financial system. It was working closely with a number of banks and institutional investors. In the past week, European banking stocks fell due in part to investor fears of contagion. On a broader level, the problems of SVB and Credit Suisse have led investors to think that the Federal Reserve might stall or revert its plans to further raise interest rates to tame inflation. (With inputs from agencies) WATCH WION LIVE HERE

Credit Suisse: How did the fall of 166-year-old lending institution unfold?

UBS group has agreed to buy Credit Suisse, the embedded bank for 3.2 billion dollar. It is to assume up to 5.4 billion dollar in losses. It's a deal that has been backed by a massive Swiss guarantee.

Credit Suisse shareholders take hit as UBS announces deal

UBS on Sunday (March 19) agreed to buy the troubled rival bank Credit Suisse for $3.25&nbsp;billion after the two banks held marathon talks, the Financial Times reported.

Last week, Credit Suisse shares lost a quarter of their value. On Friday, the bank was valued at the equivalent of about $8 billion at market close.&nbsp;

UBS had been in talks to finalise a mammoth takeover of Credit Suisse and reassure investors before the markets reopened Monday. Switzerland's banks have been in urgent negotiations throughout the weekend, with the government, central bank, and financial regulators all involved.

Speaking to Reuters, Beat Wittmann, the chairperson and partner of Porta Advisors, said on Sunday that the deal made a lot of sense.&nbsp;

“And if it's diligently and fairly executed and of course, also a new leadership on the board level and CEO level announced that we'll not only fully restore trust in the system, but I think this would create a very, very strong bank. And if well-managed, then, of course, UBS would do an absolutely fantastic deal here and would be significantly strengthened in that core strategy. Of course, there will be antitrust issues and some businesses will have to be sold out or carved out in order to meet regulatory requirements,” Wittmann said.&nbsp;

“Well, I have been surprised because the market capitalisation on Friday (March 17) was $8 billion. So this is $7 billion less, this offer. And I think that this will cause a lot of discussions. Why? Because it will raise a lot of questions about why this valuation is so low and why the board of Credit Suisse and also the Swiss authorities have waited for so long to address this problem. And if this valuation remains at $1 billion, then it just means that the problems and the legacies, the situation of Credit Suisse is in a much worse shape than expected or seen by Friday,” he added.&nbsp;

Reuters earlier reported that UBS was seeking government guarantees of about $6 billion for the takeover of Credit Suisse. A source told Reuters the guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges.&nbsp;

The source added that talks to resolve the crisis of confidence in Credit Suisse were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combined.&nbsp;

(With inputs from agencies)

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UBS on Sunday (March 19) agreed to buy the troubled rival bank Credit Suisse for $3.25 billion after the two banks held marathon talks, the Financial Times reported.

UBS on Sunday (March 19) agreed to buy the troubled rival bank Credit Suisse for $3.25 billion after the two banks held marathon talks, the Financial Times reported. Last week, Credit Suisse shares lost a quarter of their value. On Friday, the bank was valued at the equivalent of about $8 billion at market close. UBS had been in talks to finalise a mammoth takeover of Credit Suisse and reassure investors before the markets reopened Monday. Switzerland's banks have been in urgent negotiations throughout the weekend, with the government, central bank, and financial regulators all involved. Speaking to Reuters, Beat Wittmann, the chairperson and partner of Porta Advisors, said on Sunday that the deal made a lot of sense. “And if it's diligently and fairly executed and of course, also a new leadership on the board level and CEO level announced that we'll not only fully restore trust in the system, but I think this would create a very, very strong bank. And if well-managed, then, of course, UBS would do an absolutely fantastic deal here and would be significantly strengthened in that core strategy. Of course, there will be antitrust issues and some businesses will have to be sold out or carved out in order to meet regulatory requirements,” Wittmann said. “Well, I have been surprised because the market capitalisation on Friday (March 17) was $8 billion. So this is $7 billion less, this offer. And I think that this will cause a lot of discussions. Why? Because it will raise a lot of questions about why this valuation is so low and why the board of Credit Suisse and also the Swiss authorities have waited for so long to address this problem. And if this valuation remains at $1 billion, then it just means that the problems and the legacies, the situation of Credit Suisse is in a much worse shape than expected or seen by Friday,” he added. Reuters earlier reported that UBS was seeking government guarantees of about $6 billion for the takeover of Credit Suisse. A source told Reuters the guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges. The source added that talks to resolve the crisis of confidence in Credit Suisse were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combined. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UBS agrees to buy Credit Suisse for $3.25 billion: Report

Shares of UBS plunged on Monday (March 20) after Switzerland's largest bank took over its troubled rival Credit Suisse for USD 3.25 billion. The takeover, aimed at preventing economic turmoil from spreading throughout the country and beyond, failed to calm market's&nbsp;nerves. UBS shares fell as much as 12 per cent before clawing back to some extent.

Shares of Credit Suisse, for their part, opened almost 64 per cent lower, at just 0.68 Swiss francs per share, well below the UBS takeover price.

Watch | Credit Suisse shareholders take hit as UBS announces deal

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Last week, Credit Suisse shares suffered a heavy fall&nbsp;on the stock market. On Friday, the share price closed at 1.86 Swiss francs. UBS said Credit Suisse shareholders would get 0.76 Swiss francs per share.

Credit Suisse's share price has tumbled from 12.78 Swiss francs in February 2021 due to a string of scandals and crises that it has been unable to shake off.

Like UBS, Credit Suisse was one of 30 worldwide&nbsp;systemically important banks. This means that the bank was deemed of such vital importance to the global banking system that it was called "too big to fail."

But the markets saw the bank as a weak link in the chain.

Amid fears of contagion after the collapse of two US banks, Credit Suisse's share price plunged by more than 30 per cent last Wednesday to a record low of 1.55 Swiss francs, prompting the central bank to step in and offer a $54-billion lifeline.

Also Read | <a href="https://www.wionews.com/business-economy/credit-suisse-ubs-merger-sets-off-central-banks-catering-to-bolster-cash-flow-573814">Credit Suisse, UBS merger sets off central banks catering to bolster cash flow</a>

But after recovering some ground Thursday, it saw its shares plunge again, prompting a weekend of frenzied negotiations before the Swiss government, central bank and regulator, along with the two banking giants announced the mega-takeover late Sunday.

(With inputs from agencies)

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Shares of UBS plunged on Monday (March 20) after Switzerland's largest bank took over its troubled rival Credit Suisse for USD 3.25 billion. The takeover, aimed at preventing economic turmoil from spreading throughout the country and beyond, failed to calm market's nerves.

Shares of UBS plunged on Monday (March 20) after Switzerland's largest bank took over its troubled rival Credit Suisse for USD 3.25 billion. The takeover, aimed at preventing economic turmoil from spreading throughout the country and beyond, failed to calm market's nerves. UBS shares fell as much as 12 per cent before clawing back to some extent. Shares of Credit Suisse, for their part, opened almost 64 per cent lower, at just 0.68 Swiss francs per share, well below the UBS takeover price. Watch | Credit Suisse shareholders take hit as UBS announces deal × Last week, Credit Suisse shares suffered a heavy fall on the stock market. On Friday, the share price closed at 1.86 Swiss francs. UBS said Credit Suisse shareholders would get 0.76 Swiss francs per share. Credit Suisse's share price has tumbled from 12.78 Swiss francs in February 2021 due to a string of scandals and crises that it has been unable to shake off. Like UBS, Credit Suisse was one of 30 worldwide systemically important banks. This means that the bank was deemed of such vital importance to the global banking system that it was called "too big to fail." But the markets saw the bank as a weak link in the chain. Amid fears of contagion after the collapse of two US banks, Credit Suisse's share price plunged by more than 30 per cent last Wednesday to a record low of 1.55 Swiss francs, prompting the central bank to step in and offer a $54-billion lifeline. Also Read | Credit Suisse, UBS merger sets off central banks catering to bolster cash flow But after recovering some ground Thursday, it saw its shares plunge again, prompting a weekend of frenzied negotiations before the Swiss government, central bank and regulator, along with the two banking giants announced the mega-takeover late Sunday. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

UBS shares take major hit after buyout of Credit Suisse

The world's leading central banks jointly announced new action to try to keep U.S. dollars flowing easily through the global banking system. It comes after Credit Suisse was bought by UBS in a state-backed rescue deal.

Central banks take action to to keep cash flowing amid investor fears

After Sunday's merger agreement of Credit Suisse and UBS, the global central banks are setting off to cater to the credit flow challenges.&nbsp;Many central banks including Bank of England are now scrambling to boost the cash flow after growing concerns gripped US banking sector.&nbsp;&nbsp;

The US dollar liquidity "swap line" arrangement will kick off from Monday. As per US federal reserve, the swap lines are designed to improve liquidity conditions in dollar funding markets in the US and across the globe. With the help of swap line arrangement global central banks get the capacity to deliver US dollar funding to institutions in their jurisdictions, in times of market stress.

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Bank of England, Bank of Canada, Bank of Japan, US Federal Reserve, the European Central Bank, and Swiss National Bank initiated a joint action to ease strains.&nbsp;

The UBS-Credit Suisse merger deal was brought about after intervention of the Swiss bank. The official statement said that the deal was necessary for the survival of struggling Credit Suisse.&nbsp;The deal was finalized in accordance with the emergency ordinance issued by the Swiss Federal Council wherein the merger was implemented without approval of the shareholders.&nbsp;

The announcement by the central banks is an "important backstop to ease strains in global funding markets." The move will reduce the affect on the supply of credit to households and businesses.

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British banks will have the option of borrowing directly from the Bank of England, which will borrow money from the US Federal Reserve, rather than the open market. The same will apply to banks in the US, Canada, Japan, Switzerland, and the Eurozone. This financing will be available to banks on daily basis.

This kind of arrangement was initiated earlier also at the time of&nbsp;2008 financial crisis and the Covid pandemic. The swap line will continue "at least through the end of April", as per the Bank of England.

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Silicon Valley Bank collapse was the worst US banking collapse since 2008. US President Joe Biden gave assurances that US banking system is safe however, the SVB collapse cut open many vulnerabilities as the global banking stocks continued to tumble.&nbsp;

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After Sunday's merger agreement of Credit Suisse and UBS, the global central banks are setting off to cater to the credit flow challenges. Many central banks including Bank of England are now scrambling to boost the cash flow after growing concerns gripped US banking sector.

After Sunday's merger agreement of Credit Suisse and UBS, the global central banks are setting off to cater to the credit flow challenges. Many central banks including Bank of England are now scrambling to boost the cash flow after growing concerns gripped US banking sector. The US dollar liquidity "swap line" arrangement will kick off from Monday. As per US federal reserve, the swap lines are designed to improve liquidity conditions in dollar funding markets in the US and across the globe. With the help of swap line arrangement global central banks get the capacity to deliver US dollar funding to institutions in their jurisdictions, in times of market stress. Also Read | One arrested after Khalistani extremists vandalise Indian High Commission in UK Bank of England, Bank of Canada, Bank of Japan, US Federal Reserve, the European Central Bank, and Swiss National Bank initiated a joint action to ease strains. The UBS-Credit Suisse merger deal was brought about after intervention of the Swiss bank. The official statement said that the deal was necessary for the survival of struggling Credit Suisse. The deal was finalized in accordance with the emergency ordinance issued by the Swiss Federal Council wherein the merger was implemented without approval of the shareholders. The announcement by the central banks is an "important backstop to ease strains in global funding markets." The move will reduce the affect on the supply of credit to households and businesses. Also Read | South African investigator Cloete Murray, who looked into state corruptions, shot dead British banks will have the option of borrowing directly from the Bank of England, which will borrow money from the US Federal Reserve, rather than the open market. The same will apply to banks in the US, Canada, Japan, Switzerland, and the Eurozone. This financing will be available to banks on daily basis. This kind of arrangement was initiated earlier also at the time of 2008 financial crisis and the Covid pandemic. The swap line will continue "at least through the end of April", as per the Bank of England. Watch | After Iran-Saudi pact, China to play peacemaker in Ukraine war? Silicon Valley Bank collapse was the worst US banking collapse since 2008. US President Joe Biden gave assurances that US banking system is safe however, the SVB collapse cut open many vulnerabilities as the global banking stocks continued to tumble. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Credit Suisse, UBS merger sets off central banks catering to bolster cash flow

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