Union Bank of Switzerland (UBS) is under pressure from the local government to bail out Credit Suisse. Now UBS has also agreed for this, just it has asked for a guarantee of $6 billion from the Swiss government.
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Credit Suisse Bank’s crisis has become huge in Switzerland, considered a tax haven. Credit Suisse’s rival bank UBS is under heavy pressure from Swiss regulators regarding its acquisition. It is now reported that UBS has agreed to bail out Credit Suisse from the crisis, just for this it has sought a guarantee of $6 billion from the government.
The boards of UBS and Credit Suisse held separate meetings on Saturday to decide the future of Credit Suisse. After this, a person having knowledge of this possible deal between Credit Suisse and UBS gave this information.
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6 billion dollars will be useful in these expenses
The agency has quoted sources as saying that UBS has sought a guarantee of $ 6 billion from the government. This amount will be used to meet the costs of closing parts of Credit Suisse and possible legal expenses.
About 10,000 jobs will go
Quoting the source, it has been said in the news that discussions are going on regarding the restoration of confidence in Credit Suisse. There are likely to be many obstacles in this. On the other hand, if both the banks merge, then about 10,000 people will have to be thrown out of the job.
However, Credit Suisse or UBS refused to give any statement regarding this news.
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UBS not in favor of forced merger
According to a Bloomberg report, both UBS and Credit Suisse are not in favor of such a forced merger. UBS wants to maintain its wealth-oriented strategy, and is unwilling to take the risks associated with Credit Suisse. But in this whole situation, he is under pressure from the Swiss regulators to acquire Credit Suisse.
America’s banking crisis reached Europe
The banking crisis that began in the US with the collapse of Silicon Valley Bank and Signature Bank has reached Europe in the form of Credit Suisse. To save the 167-year-old Credit Suisse Bank, even though the central bank of Switzerland has promised $ 54 billion in aid. But at the same time there is pressure on UBS for its acquisition.
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