UBS buys struggling Credit Suisse for nearly $3.25 billion.

(Reuters)

[Financial Channel/Comprehensive Report] Banking giant UBS has acquired troubled Credit Suisse for nearly US$3.25 billion (TWD 98.2 billion). The transaction was orchestrated by Swiss regulators to avoid further market turmoil in the global banking system.

The merger of two of the largest and most famous Swiss banks is a seismic blow to Switzerland's gold-medal reputation as a global financial center.

Credit Suisse is one of 30 financial institutions known as global systemically important banks. Swiss authorities are concerned about the serious consequences of its failure. The Swiss administrative supervision department, including Berset, has adopted an emergency decree. Mergers are allowed without shareholder approval.

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Swiss Finance Minister Karin Keller-Sutter said the committee regretted that Credit Suisse, once a model Swiss institution, had completely fallen into this predicament.

Credit Suisse chairman Axel Lehmann called the sale a clear turning point.

It is a historic, sad and challenging day for Credit Suisse, Switzerland and the global financial markets, Lehmann said, adding that the focus now is on the future, especially for Credit Suisse's 50,000 employees, 17,000 of whom are in the Switzerland.

UBS Chairman Colm Kelleher welcomed the huge opportunity presented by the acquisition, saying the combined group would create a company with total investment assets of more than US$5 trillion (TWD 150 trillion). wealth management company.

Max Georgiou, an analyst at Third Bridge, said today was one of the most important days for European banking since 2008, with a profound impact on the sector.

Swiss authorities have urged UBS to take over the smaller rival after Credit Suisse's plan to borrow up to $54 billion failed to reassure investors and the bank's clients.

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