The president of the Swiss Confederation, Alain Berset, reported on Sunday the purchase of the Swiss bank Credit Suisse by UBS bank and said that the government on Thursday guaranteed 100 billion Swiss francs for the bank’s liquidity.
The Swiss government has decided in view of the unstable situation and the lack of confidence in the bank »to support the purchase of Credit Suisse by UBS,» Berset said at a press conference at the Federal Palace in Bern.
The situation is well known, Credit Suisse is one of the 30 systemic banks worldwide. It is one of the two largest banks in the country. It is therefore not only decisive for Switzerland, for our companies, for private customers, for its own employees, but also for the stability of the entire financial system,» Berset added.
The Swiss leader referred to the »significant turbulence» experienced in recent days by several financial markets. This turbulence destabilized the most fragile banks and this was the case of Credit Suisse. Despite good capitalization, Credit Suisse has lost the confidence of the banks,» he explained.
Consequently, »in the face of such a loss of confidence, ensuring the supply of liquidity to a bank is one of the measures to be taken as a top priority». That is why the government approved on Thursday night 50 billion in immediate liquidity for Credit Suisse — which was already known –. Berset has now announced that the total guarantees amount to CHF 100 billion.
Already on Friday the government concluded that »the necessary confidence could no longer be restored and that a rapid solution guaranteeing stability was imperative».
Source: (EUROPA PRESS)
