The banking giant UBS has agreed to purchase Credit Suisse, a smaller rival, Swiss authorities announced on Sunday.
The historic deal comes as major financial institutions continue to grapple with the fallout from the sudden collapse of Silicon Valley Bank earlier this month, and work to stave off a broader crisis.
At a news conference held Sunday afternoon to discuss the emergency purchase, Karin Keller-Sutter, president of FINMA, said"Switzerland has to take responsibilities beyond its own borders," and added that the deal was reached in an effort to avoid"irreparable economic turmoil in Switzerland and throughout the world." Keller-Sutter said the purchase"laid the foundations for greater stability both in Switzerland and internationally.
The pledges of emergency funding on Thursday briefly interrupted what had been ongoing downturns in both banks' stocks, which resumed the following day. On Friday, Credit Suisse's share price slipped 7% and ended the day at $2.01.Frank Augstein / AP "This additional liquidity would support Credit Suisse's core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs," said Credit Suisse in a statement at the time.
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