[CNA] UBS Group has agreed to buy rival Credit Suisse for 3 billion Swiss francs ($3.23 billion), and has agreed to take a $54 billion loss.

Swiss authorities orchestrated the forced merger to avoid further turmoil in global financial markets.

Swiss regulators forced their way in, arranging the deal to prevent a crisis of confidence at Credit Suisse from spilling over into the wider financial system, Reuters reported.

The transaction is expected to close by the end of this year.

Please read on...

The Swiss finance minister said the failure of a bank of global importance would have irreparable consequences for financial markets.

Whether this deal will be enough to restore the market's trust in global banks remains to be seen.

Asian and ANZ stock markets, due to open in a few hours, could be early indicators.

The Swiss National Bank (Swiss National Bank), the central bank of Switzerland, announced at a press conference in the capital Bern that it will provide considerable liquidity to the merged bank, emphasizing that the above-mentioned transaction includes support for UBS AG and Credit Suisse 1000. billion Swiss francs ($108 billion) in liquidity assistance.

"The takeover of Credit Suisse by the UBS Group found a solution to ensure financial stability and protect the Swiss economy in this exceptional situation," the Swiss National Bank said.

Federal Reserve (Fed) Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen welcomed the move today, Agence France-Presse reported.

Global markets are on edge over the crisis facing the banking sector.

"We welcome today's announcement by the Swiss authorities in support of financial stability," Powell and Yellen said in a joint statement after Swiss President Alain Berset announced the acquisition.

"U.S. banks' capital and liquidity positions are very solid and the U.S. financial system is resilient," the statement said, adding that "we are in close contact with our international counterparts to support their approach."

UK Chancellor of the Exchequer Jeremy Hunt tweeted: "The UK government welcomes the approach adopted by the Swiss authorities today in relation to Credit Suisse in support of financial stability."

"The Bank of England has confirmed that the UK banking system remains safe, sound and well capitalized."

European Central Bank President Christine Lagarde also today welcomed the "swift action" by Swiss authorities.

Lagarde said in a statement: "I welcome the swift actions and decisions of the Swiss authorities ... which will help restore orderly market conditions and ensure financial stability. The eurozone banking sector is resilient and in a state of ample capital and liquidity "1120320

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.