UBS Acquires Credit Suisse for $3.23 Billion
UBS has agreed to purchase rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock, assuming up to 5 billion francs ($5.4 billion) in losses. Swiss authorities orchestrated this merger.
BoE Pledges Collaboration with International Counterparts
In a statement, the BoE welcomed the actions the Swiss authorities took to promote financial stability and pledged to support international counterparts in implementing these measures.
Swiss Banks' U.K. Units Regulated by FCA and PRA
London, a major financial hub, is home to Swiss banks' UK-based units, which are regulated by the Financial Conduct Authority (FCA) and the BoE's Prudential Regulation Authority (PRA).
FCA Indicates Approval of Proposed Actions
The FCA announced that it is inclined to approve the actions related to the entities under its regulatory and supervisory jurisdiction.
Global Support for Swiss Authorities' Actions
Similar declarations accompanied the BoE's statement from the European Central Bank, the U.S. Federal Reserve, and Britain's finance ministry.
U.K. Government Engagement with FCA and BoE
A spokesperson for the U.K. finance ministry stated that the government welcomes the Swiss authorities' steps concerning Credit Suisse and will continue to engage with the FCA and BoE as per standard practice.
Reassurances Following Silicon Valley Bank Collapse
In the wake of the collapse of U.S. lender Silicon Valley Bank earlier this month, British officials have been working to reassure investors about the overall health of the broader banking system.