Data Map

  • UBS will pay 3 billion Swiss francs (US $ 3.23 billion)

  • Ye Lun and Powell welcome to support financial stability agreements

  • UBS will bear a loss of up to $ 5.4 billion; the transaction will be completed this year

  • Credit Suisse subtracted $ 17 billion in bonds to zero, anger the holder

  • S & P & Small and Bank's sovereign credit rating

Tuliang/Dado Ruvic

UBS agreed to acquire SundayCredit Switzerland, competitors, is the merger of the Swiss authorities at the last moment.At the same time, some top central banks around the world try to guarantee the health of the banking system to investors.

UBS will pay 3 billion Swiss francs (US $ 3.23 billion) and bear a loss of up to $ 5.4 billion. This transaction is expected to be completed by the end of 2023.

The Federal Reserve Council (Fed/FED) said on Sunday that the central banks in Canada, the United Kingdom, Japan, the European Union, and Switzerland have taken coordination operations to enhance the market to enhance the market.Liquidity is a sign of global coordination.The European Central Bank vowed to provide loan support to the euro zone when necessary, and added that Switzerland's rescue of Swiss Credit "helps" to restore the market calm.

After the cruel week of the second largest and third largest banks in American history, officials urgently assisted Credit Switzerland with a 167 -year history.Credit Switzerland is one of the world's largest wealth management companies, and it is also one of the 30 banks in the world that are regarded as systemic importance.The acquisition of credit in Switzerland may have ripples in the global financial market.

The European Central Bank said: "The banking industry in the euro zone has toughness, and the condition of capital and flowing funds is strong. In any case, our policy toolbox can be completely in the euro zone finance when needed.The system provides liquidity support and maintains the steady transmission of monetary policy. "

The Fed Chairman Powell and US Finance Minister Ye Lun said they welcomed the announcement of the Swiss authorities.

Swiss regulatory agencies have been forced to intervene and plan a transaction to prevent the crisis of confidence from spreading to a wider financial system.

The Bank of England also welcomes the Swiss officials to promote the acquisition, and said that the British banking system has sufficient funds.

Prior to this, Europe and the United States have been working hard to support the banking industry since the closure of Silicon Valley Bank and Signature Bank in the United States.

As a crisis is at least temporarily settled, people's attention turned to small and medium -sized banks in the predicament.

Although several large banks deposited $ 30 billion in the First Republican Bank, the pressure of deposit outflow still exists.The closure of Silicon Valley Bank and SIGNATURE Bank has impacted the First Republican Bank.

S & P reduced the sovereign credit rating of the first and banks from BB+to B+on Sunday.

Four well -known American members responsible for banking affairs said on Sunday that they will consider whether the federal insurance limit for bank deposits needs to be increased.

At the same time, the US Federal Deposit Insurance Corporation (FDIC) is planning to restart the sale process of Silicon Valley Bank.According to people familiar with the matter, FDIC is seeking to split the bank.

** decisive intervention **

It is not clear whether the Swiss transaction is sufficient to restore the global trust in banking industry.

Before the intervention, two sources told Reuters earlier on Sunday that major European banks are looking forward to the Fed and the European Central Bank of the European Central Bank.The crisis spreads stronger signals.

The euro, the British pound, and the Australian dollar have risen by about 0.4%, indicating that there is a certain degree of risk preferences in the market.

"This message should inspire bank stocks to rise, but now the signal of the lifting alarm is too early," said Michael Rosen, chief investment director of Angeles Investments, California.

COLM Kelleher, chairman of UBS, said at a press conference that it will close the investment banking business of Credit Switzerland.The business has thousands of employees worldwide.UBS said it is expected to save about $ 7 billion a year by 2027.

The Swiss Bank said that Sunday's transactions include the liquidity assistance of 100 billion Swiss francs ($ 108 billion) for Sunday and Swiss Credit.

UBS said that the shareholders of Creditkin will be exchanged for 1 UBS stock every 22.48 shares of Creditver.This is equivalent to 0.76 Swiss francs per share, with a total price of 3 billion Swiss francs.

The stock price of Credit Suisse plunged a quarter last week.The bank was forced to use a $ 54 billion central bank's funds to try to recover from the scandal of confidence.

According to the agreement with UBS, some creditors of Swiss Credit are the main losers.Swiss regulatory agencies have decided that Credit Suisse bonds with a nominal value of $ 17 billion will return to zero, which angered some bond holders. They believed that they would be better protected than shareholders in the rescue agreement announced on Sunday.