After a weekend of frantic talks, the Swiss government and the banking regulator brokered a deal once it became clear that a $54bn (£44bn) loan to Credit Suisse from the Swiss central bank had failed to halt the precipitous slide in its share price.
"The takeover of Credit Suisse by UBS is the best solution" in the current situation, said the Swiss president, Alain Berset.
He said the takeover was made possible after the Swiss federal government, the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank agreed to support the deal.
An £8bn insurance scheme to protect UBS from losses was described by Karin Keller-Sutter, the Swiss finance minister, as "like a backstop and insurance that only comes into effect if certain losses occur".
Private investors who supported Credit Suisse with $16bn of credit were also expected to be wiped out by the deal.
Coupled with last week's collapse of Silicon Valley Bank, whose UK arm had to be taken over by HSBC for the nominal sum of £1, the crisis engulfing Credit Suisse had fuelled anxiety about contagion in the international banking system.
Esta historia es de la edición March 20, 2023 de The Guardian.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 20, 2023 de The Guardian.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Beaumont may step in at RFU if Ilube quits over pay fiasco
Sir Bill Beaumont could be parachuted into the Rugby Football Union as interim chair in the event Tom Ilube falls on his sword amid the botched handling of the executive pay scandal engulfing the game.
'An exciting new era' Everton owners promise return to glory days after £500m deal
The Friedkin Group vowed to restore Everton to their \"rightful place in the Premier League table\" after completing a takeover that brought the turbulent era of Farhad Moshiri to an end.
Friedkin Group brings hope of much-needed stability and ambition
The Friedkin Group's takeover of Everton represents a momentous day for those exhausted and resigned to calamity by the tenure of Farhad Moshiri.
A humble Hamilton hero who was born to score
Ex-coaches in New Zealand on Chris Wood's rise from selfless schoolboy to poster boy at Nottingham Forest
Solanke puts Spurs through despite Forster's blunders
Like a song that changes time signature for the hell of it, like a friend that inexplicably blanks you, like a match report that noodles away for ages instead of just telling you what happened, Tottenham Hotspur remain medically incapable of doing things the simple way.
“The World Cup loss fuelled a fire in me to become the best’
Ellie Kildunne's infectious enthusiasm for the women's game has her dreaming of a Twickenham final in 2025
'Usyk is fighting for his country': Dubois tips Fury to lose rematch
Daniel Dubois, the IBF world heavyweight champion, believes that Oleksandr Usyk will again defeat Tyson Fury in Riyadh tomorrow night.
Coe pledges radical reform in bid for IOC presidency
Sebastian Coe has promised to radically transform the International Olympic Committee if he is elected its next president in March - and says his track record of delivering at the London 2012 Games and at World Athletics shows he is the right choice for the leading job in sport.
Football's new fetish Forget Nicolas Jover and stylish set-piece coaches, bring on the directors of vibes
It's 25 October 2012. Those of you who follow the Austrian regional leagues won't need reminding.
Rush to start work caused enormous cost overruns, says new boss of HS2
Enormous budget overruns on the HS2 high-speed railway have been blamed by its new chief executive on a \"rush to start\", as the Department for Transport admitted it did not know what the line would cost.
