Credit Suisse Bank: The agreement between UBS Group AG and Credit Suisse Bank has been approved by the Board of Governors of the US Federal Reserve. The US Fed was apprised of the event and stated that it had approved the UBS-Credit Suisse agreement for UBS Group AG to acquire the US subsidiaries of Credit Suisse. The US Fed continued by stating that on March 22 the UBS Group had requested its permission for the transaction.
UBS-Credit Suisse investment banking agreement will contain stronger measures
According to the US Fed’s board of governors, as part of this Swiss-brokered rescue agreement, UBS Group AG has agreed to provide the US Federal Reserve with an implementation plan within three months of the transaction’s completion for the merger of its American operations and business with Credit Suisse subsidiaries. Due to the increasing scale of the firm, the UBS-Credit Suisse investment banking agreement will contain stronger measures, such as liquidity standards for the bank.
Explanation Of UBS Credit Suisse Deal
Before Zurich-based rival UBS, which has been around for 167 years, rode to the rescue with a merger orchestrated and funded by the Swiss authorities last month, the 167-year-old Credit Suisse Bank was on the verge of bankruptcy. A little portion of Credit Suisse’s previous market value, 3 billion Swiss francs ($3.3 billion), was agreed upon by UBS and Credit Suisse. According to rumours, in an effort to keep Credit Suisse Group AG’s customers and workers, the Swiss government and UBS Group AG have been rushing to complete the acquisition of the institution in as little as one month. The European Union’s antitrust inspectors granted UBS a temporary permit earlier this month, but the company must still apply for clearance under EU merger regulations. According to persons acquainted with the procedure, the Bank of England has given its approval for the takeover in the UK. According to UBS, the merger will result in the creation of a company with total invested assets exceeding $5 trillion. Holders of Credit Suisse AT1 bonds will earn nothing under the Credit Suisse UBS merger agreement, while shareholders—who typically rank below bondholders in terms of compensation—would receive $3.23 billion.
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