The major Swiss bank UBS takes over the ailing Credit Suisse. This was announced by UBS, the Swiss National Bank SNB announced on Sunday evening.

The SNB is supporting the takeover with extensive liquidity assistance, the central bank announced on Sunday evening. A loan of up to CHF 100 billion (around EUR 101 billion) will be granted. Credit Suisse has lost the confidence of the financial markets, said Swiss President Alain Berset at a press conference scheduled at short notice. The takeover by UBS is the best solution to restore confidence. The press conference was also attended by the Chairmen of the Board of Directors of the two banks, Colm Kelleher and Axel Lehmann, the Head of the Swiss Financial Supervisory Authority FINMA, Marlene Amstad, Central Bank Chairman Thomas Jordan and Swiss Finance Minister Karin Keller-Sutter.

"With the takeover of Credit Suisse by UBS, a solution has been found in this extraordinary situation to safeguard financial stability and protect the Swiss economy," the SNB said in a statement. This contributes to the stability of the entire financial sector. FINMA approved the takeover. Both banks could continue all business activities.

Earlier, the Financial Times reported that Switzerland's largest bank is paying around CHF 2 billion in its own shares for its lurching local rival. The price represents only a fraction of Credit Suisse's market capitalization at Friday's closing price, which was 7.4 billion Swiss francs. According to the Financial Times, the Swiss government is also planning a change in the law to avoid a vote by Credit Suisse shareholders.

The takeover plan, hastily negotiated over the weekend, aims to prevent a collapse of Credit Suisse after stocks and bonds plummeted last week. Liquidity assistance from the Swiss National Bank, on the other hand, had only helped in the short term. An acceleration of the flight of customers and counterparties might have drawn wider circles.

According to circles, the US financial authorities have also been involved in the talks, as both financial institutions operate in the USA and are considered systemically important in Switzerland. The agreement should be in place before markets in Asia reopen.

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