Swiss group UBS Group AG has acquired Credit Suisse for US$3.23 billion (about R$17 billion), the Swiss National Bank said on Sunday (19). Reuters quoted the value. The agreement also includes US$108 billion (R$568.86 billion) in liquidity assistance from the Swiss National Bank.
In addition, the Swiss Federal Government will provide a loss guarantee of a maximum of US$9.7 billion (R$51 billion) for a given portion of the portfolio. These resources will act as a kind of provision and will only be used if this portfolio actually records losses.
According to Reuters, the agreement also stipulates that UBS will bear a loss of US$5.4 billion (28.5 billion R$) from the Swiss bank.
Swiss regulators had to act and began smoothing over negotiations for the bank’s purchase by UBS, in an effort to prevent the crisis of confidence in Credit Suisse that emerged last week from spilling over into the domestic and international financial system.
According to the Swiss Finance Minister, the failure of a globally important bank such as Credit Suisse would have “irreparable consequences” for the markets.
“With the acquisition of Credit Suisse by UBS, a solution was found to ensure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss Central Bank said, according to Reuters.
The Swiss Financial Market Supervisory Authority (FINMA) said that the activities of the two banks will be able to continue normally, without restrictions or interruptions. In addition, the authority also said that it would coordinate the operation with the Federal Reserve (the Fed, the US central bank) and the British Prudential Regulatory Authority.
The Financial Times had previously reported that UBS was ready to pay up to $1 billion to the Swiss bank. However, the US media claimed that Credit Suisse rejected the offer. As a result, the proposal folded.
- Credit Suisse shares were trading at around $2.01 USD (10.64 R$) on Friday;
- UBS Group proposed buying the shares for US$0.27 (R$1.43) – an offer that was rejected.
- After that, the group increased the offer by $0.54 USD (2.85 R$).
Credit Suisse shares fell more than 20% on Wednesday and raised market concerns about the general state of the international banking crisis. In addition to Credit Suisse, European competitors saw shares fall that day, also by more than 10%.
The crisis of Credit Suisse comes after the bank presented poor results in the last quarter and saw its main shareholder, the Saudi National Bank – which owns a 10% stake in the company’s company – not supporting him by increasing his stake in the company. capital. The investment did not happen due to regulatory issues.
On Thursday (16th), the bank requested a loan of US$54 billion (equivalent to R$285 billion) from the Swiss Central Bank. The Swiss National Bank said earlier that it would guarantee Credit Suisse’s liquidity if necessary.
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