The US Federal Reserve has announced that it has approved the acquisition of US assets by Credit Suisse by the Swiss bank UBS.
UBS promised to present to the Federal Reserve a plan to seize Credit Suisse’s assets, which would have tougher terms, including specific liquidity standards.
The Federal Reserve will review the merger between the two banks, which is expected to result in a major financial institution with over $250 billion in assets and over $5 trillion in total investments.
On March 19, the Swiss Federal Council approved the acquisition of Credit Suisse by UBS and provided the necessary guarantees to the country’s central bank.
The deal is worth about 3 billion Swiss francs ($3.24 billion) and is expected to close in the second half of this year.
Credit Suisse, the second largest Swiss bank, faced a crisis of confidence and a sharp drop in its shares last month, raising concerns in the markets about the possibility of its collapse.
Source: TASS