UBS has acquired Credit Suisse for CHF 3 billion, a move that many in Switzerland claim was necessary to avoid a banking crisis similar to that experienced in 2008. Credit Suisse’s shares dropped more than 60% after the deal. The Swiss government will provide $10 billion to cover any losses that UBS may incur during the takeover, and the Swiss central bank will make a $108 billion bankruptcy loan available to the banks.
While some praised the deal, saying that it was necessary to avoid severe damage to Switzerland’s financial and economic centre, others criticised it, saying that the financial system is still sick and absurd. The acquisition of Credit Suisse by UBS is expected to lead to a giant bank that would provoke instability in the event of a collapse. The move is likely to increase regulatory pressure, and there are mixed reactions to how the banking crisis has affected the cryptocurrency market.
