Why did UBS rush to buy rival Credit Suisse? This is the question posed by the Swiss Federal Prosecutor’s Office, which wishes to ensure that there has been no embezzlement. It is Switzerland’s reputation on the financial markets that is at stake, and the case should be closely monitored. Decryption.
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Credit Suisse takeover by UBS triggers investigation
At the end of March, the fall of the bank Credit Suisse sparked a commotion rarely seen in Switzerland. The government, banking players and the country’s central bank met on the weekend of March 18 in Bern, and negotiations took place throughout the night to save the bank.
And it worked: it was rival UBS – which itself had already been the subject of a bailout during the 2008 crisis – which came as a saviour… Helped by the Swiss government. This last granted a guarantee of 9 billion Swiss francs (approximately 9 billion euros) to facilitate this takeover, and the Central Bank will align up to 50 billion Swiss francs of liquidity to ensure that the banking institution is refloated.
All’s well That ends well ? Not necessarily, according to the federal prosecutor’s office, who wonders about this hasty takeover, and the interest that UBS may find in it. It will be recalled that the bank has put 3 billion dollars on the table, in order to get its hands on its rival. It’s a pittance, when you know that the loss of Credit Suisse alone amounted to nearly 7 billion Swiss francs.
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What interest for UBS?
Because the takeover seemed rushed: UBS launched without taking the time to examine the file, it seems. is also singled out this colossal loan of 50 billion dollars, granted to UBS by the Swiss Central Bank. In short, what is UBS’s interest in this affair, and why did it hasten to buy an establishment with so much difficulty?
A press release from the prosecution justifies this investigation as follows:
“The Public Prosecutor wants to proactively fulfill its mandate and responsibility to contribute to a clean Swiss financial center and set up a control system allowing him to intervene immediately on any problem falling within his competence.»
The key word being of course “clean”. Switzerland’s reputation as a global financial center seems to be at stake. In recent months, the collapse of several global banking institutions has triggered a wave of panic, and the country seems determined to reassure, and to go all the way. of this story.
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Source: Reuters
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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