Credit Suisse, Switzerland’s second-largest bank, which has been in trouble for two years has been taken over by UBS (a leading global wealth manager with more than $5 trillion in total invested assets).
This was done to avoid economic turmoil and for preserving financial stability in the event of Credit Suisse becoming bankrupt.
UBS Chairman Colm Kelleher said: “This acquisition is attractive for UBS shareholders but let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue.
Credit Suisse said that Credit Suisse and UBS have entered into a merger agreement on Sunday with UBS being the surviving entity.
Credit Suisse was a symbol and showcase for banking system of Switzerland.
Many Indian businesses and entities have significant stake in Swiss banking system. Collapse of Credit Suisse would have badly affected these Indian entities.