The United States Federal Reserve (Fed) announced that approved the request of the Swiss bank UBS of acquire the US subsidiaries of Credit Suisse. This is one of the banks that went bankrupt last March, after the collapse of the Silicon Valley Bank (SVB).
The news comes after the purchase, backed by the Swiss government, of Credit Suisse by its competitor, who acquired it for approximately US$3.4 billion to save him from possible bankruptcy last month.
According to fed, UBS undertook to provide the Federal Reserve Board a plan to combine the US businesses of the two Swiss firmswhich must be updated every quarter.
The plan should reflect UBS’s commitment “to comply with more rigorous prudential standardsincluding liquidity standards“The Fed said in a statement.
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EARTHQUAKE. The fall of Credit Suisse in Switzerland coincided with that of Silicon Valley Bank in the US and put the market on alert.
Bank failure and its consequences
The acquisition of Credit Suisse by UBS was one of the most important ramifications of the banking uncertainty unleashed in the US after the March bankruptcy of Silicon Valley Banka firm specializing in technology and emerging companies whose financial situation had worsened as a result of the Fed’s rate hikes to combat inflation.
Panic swept away another US firm, the SignatureBankand almost melted a third, First Republicwhich finally had to be rescued by the main banks of the country with US$30,000 million.
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As a result of the crisis, the main economic leaders of the country, and in particular the Treasury Secretary Janet Yellenand the Fed Chairman Jerome Powelltried to assure citizens and markets that the situation was not going to lead to a financial crisis.
He us central bankin fact, launched a new fund so that banks that need to insure their customers’ deposits have money to do soand increased the frequency with which it offers currency exchange operations to ensure that there are enough dollars available in the financial system.
Source: Ambito
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