The Swiss government spent a lot of money to rescue Credit Suisse.

(Schematic, Reuters)

[Financial Channel/Comprehensive Report] Reuters disclosed that the Swiss government and the central bank will provide about 260 billion Swiss francs (approximately 8.58 trillion yuan) as part of supporting the merger of UBS and Credit Suisse. This huge amount is equivalent to Switzerland's GDP last year. 1/3 of.

"Reuters" reported that the Swiss government announced on Sunday (19th) that in order to rescue Credit Suisse, UBS acquired Credit Suisse for 3 billion Swiss francs and assumed a loss of up to 5.4 billion US dollars to avoid turmoil in the global banking industry.

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According to agreement documents, the deal will involve substantial public support, including three working capital and loans, as well as a commitment by the Swiss government to absorb potential losses of up to 9 billion Swiss francs from the acquisition.

In addition to Credit Suisse's loan of 50 billion Swiss francs from the Swiss National Bank last week through guaranteed loan facilities and short-term liquidity facilities, the Swiss National Bank will provide emergency liquidity loans of up to 100 billion Swiss francs to the merged bank, in case In the event of default, the loan is protected.

The third part of the support is to allow Credit Suisse to obtain another 100 billion Swiss francs through public liquidity guarantees. This part of the liquidity support is explicitly guaranteed by the Swiss government.

The support totals 259 billion Swiss francs, equivalent to one-third of Switzerland's GDP last year, which stood at 771 billion Swiss francs.

The Swiss government will have to tell voters why they are putting people's money, taxpayer's money, at risk to bail out a bank that caters to the super-rich, says a former multinational bank executive.

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