Home » CS takeover by UBS – UBS takes over Credit Suisse: The most important points – News

CS takeover by UBS – UBS takes over Credit Suisse: The most important points – News

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CS takeover by UBS – UBS takes over Credit Suisse: The most important points – News

  • The major merger in the Swiss banking center is a fact: The UBS takes over her competitor Credit Suisse (CS).
  • The National Bank is supporting the takeover with a Liquidity support of up to CHF 200 billion.
  • In addition, the federal government provides Guarantee of nine billion francs to absorb potential losses for UBS as part of the takeover.

The future of Credit Suisse (CS) was decided with the takeover by UBS. The Federal Council supported this solution and announced it together with the representatives of CS and UBS and the supervisory authorities in Bern in the evening.

In order to ensure that Credit Suisse’s business activities can continue until the takeover is implemented and to reduce costs for the Swiss economy, the Federal Council has decided on additional liquidity measures. The Federal Council sees the best solution in the takeover by UBS, as Federal President Alain Berset and Finance Minister Karin Keller-Sutter said.

Legal bases per emergency law

The necessary legal basis has been defined for these additional liquidity aids to CS: Specifically, a bankruptcy privilege was created. This gives the National Bank (SNB) the security to be able to provide CS with additional liquidity. The SNB also receives a default guarantee.


The two previous headquarters of UBS and CS on Paradeplatz in Zurich.

KEYSTONE / Michael Buholzer

The two emergency measures were based on Articles 184 and 185 of the Federal Constitution. The emergency law should be converted into ordinary law as required, said Finance Minister Karin Keller-Sutter to the media. A bill will be submitted to Parliament within six months.

The finance delegation (FinDel) of the Federal Parliament approved the necessary commitment credits for these guarantees on Sunday afternoon.

Federal guarantees – not free of charge

In addition, the federal government provides a guarantee of nine billion Swiss francs to absorb potential losses for UBS as part of the takeover of CS.

Apply to any liquidity support strict requirements. In its communication, the Federal Council writes that measures in the area of ​​remuneration would also be ordered, within the framework of the Banking Act.

The risk for the federal government should remain as small as possible. For this reason, CS has to pay a risk premium to the Confederation and the National Bank, a commitment premium to the Confederation and interest to the SNB.

Business activities of CS will be continued

According to the Swiss Financial Market Supervisory Authority (Finma), the business activities of CS will continue. All business activities of the banks could be continued without restrictions.

Accordingly, depositors are protected and custody accounts, accounts and other services such as counters, ATMs, e-banking, debit and credit cards remain accessible in the usual way.

Hamers remains CEO – UBS pays 3 billion

At Credit Suisse there was a risk of insolvency, even if the bank was still solvent, the communiqué said. “The authorities had to take measures to avert serious damage to the Swiss and international financial market,” said Finma.

The merged bank will be managed by former UBS CEO Ralph Hamers. The Dutchman has been a member of the UBS Executive Board since September 2020. UBS takes over CS for the total amount of CHF 3 billion. Specifically, it is offering CS shareholders one UBS share for every 22.48 CS shares. This corresponds to CHF 0.76 per CS title. For comparison: the CS share last closed at CHF 1.86.

Credit Suisse: Takeover by UBS

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Credit Suisse and UBS logos are emblazoned on the company headquarters.


KEYSTONE/Michael Buholzer

The major bank Credit Suisse is taken over by UBS. The newest news/uebernahme-der-credit-suisse” data-click-track=”true”>You can find developments relating to CS and the current banking crisis in Switzerland, reactions and assessments here.

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