Swiss financial group UBS said Friday it has reached an agreement with the Swiss government to cover losses of 9 billion francs (about $10 billion) it may incur as a result of the takeover of Credit Suisse (CS) bank after UBS covers the first $5.5 billion in losses
MOSCOW (Pakistan Point News / Sputnik - 09th June, 2023) Swiss financial group UBS said Friday it has reached an agreement with the Swiss government to cover losses of 9 billion francs (about $10 billion) it may incur as a result of the takeover of Credit Suisse (CS) bank after UBS covers the first $5.5 billion in losses.
"UBS Group AG and the Swiss government have signed a Loss Protection Agreement (LPA) that will become effective upon completion of the acquisition of Credit Suisse, which is expected as early as 12 June 2023," UBS said in a statement.
The government guarantees to cover losses after UBS covers the first $5.5 billion.
In mid-March, Credit Suisse's share price plunged nearly 30%, sparking fears of a liquidity crunch. The incident followed the collapse of several US financial institutions, including Silicon Valley Bank. Later in the month, the Swiss National Bank announced the acquisition of Credit Suisse by UBS.
