UBS’s chairman Colm Kelleher says the bank acquisition gives Switzerland back its position as a financial centre. The chairman says that there would be serious consequences for the country’s international reputation if the agreement had not come to fruition. He believes the acquisition offers enormous opportunities and says that the owners are looked after through the agreement. At the same time, he says that the bank’s business area within investment is to be scaled down, writes NTB. According to the bank itself, the acquisition of Credit Suisse must have cost UBS around NOK 34 billion in shares. NOK 34 billion The Financial Times previously reported that UBS had offered 1 billion dollars for the company, a sum Bloomberg later reported that the bank would not accept. Then came a new message from the British financial newspaper that 2 billion dollars – around 21 billion Norwegian kroner – was on the table. The final result for the takeover was 3 billion Swiss francs – a sum that corresponds to around 34 billion Norwegian kroner. – Would lead to unpredictable consequences The Confederation Council of Switzerland says they welcome the takeover. They also emphasize that significant funds are made available to stabilize the market. They guarantee 9 billion Swiss francs (around NOK 105 billion). The Swiss president Alain Berset describes the acquisition as very important for the stability of the international financial sector. – An uncontrolled collapse of Credit Suisse would lead to unforeseeable consequences for the country and the international financial system, the president said at the urgently called press conference. SAD: Axel Lehmann has been chairman of Credit Suisse since last year. He thinks it is sad that the bank is now being bought up by a competitor. Photo: FABRICE COFFRINI / AFP Many meetings On Friday, according to Swiss Finance Minister Karin Keller-Sutter, it became clear that there was no longer sufficient confidence left in the market, and that an acquisition was therefore absolutely necessary. The two banks and Swiss authorities, including the Swiss central bank, have had a number of meetings in recent days. Credit Suisse is Switzerland’s second largest bank, which is now being bought by the largest bank in the country – and its biggest competitor. – Swiss stability The Swiss National Bank (SNB) also confirms the acquisition in a press release, according to Bloomberg. – The takeover was made possible with the support of the Swiss federal government, the Swiss financial supervisory authority Finma and the Swiss National Bank, writes SNB according to TT. – Through the takeover, a solution has been found to ensure financial stability and protect the Swiss economy in this exceptional situation, it continues. TOUGH TIMES: Credit Suisse is the country’s second largest bank, and has been characterized by problems for several years. Photo: SPENCER PLATT / AFP The turmoil may continue Although Credit Suisse has now been saved, Norwegian experts still believe that the financial turmoil may continue. Professor at NHH, Thore Johnsen, says the rescue operation of the Swiss bank was absolutely necessary, but does not want to revive the market. – There was no other solution. It is a bank that is too big to fail, but at the same time perhaps too big to be saved. The banking business will be scaled down and things will be sold off, he tells NTB. – Could cause problems He warns that the situation in the world economy could threaten the banks in the long term, while high interest rates could cause problems for individual banks in the short term. – It basically means little for the banking system. If nothing had happened, it could have caused really big problems. It will still be the case that many investors look around for banks that have weaknesses, seen in light of the sharp interest rate increases from the state banks, Johnsen follows up to NTB. – A sad day for the bank Credit Suisse’s chairman says it is a sad day for the bank, and that the problems in the US came at an unfortunate time. – This is a sad day both for Credit Suisse and for the global financial market, says the acquired bank’s chairman Axel P. Lehmann.
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Confirms giant purchase by major bank – news Urix – Foreign news and documentaries
