3/19, 7:35 PM (Source: TeleTrader)
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SNB confirms UBS agreed to buy Credit Suisse

The Swiss National Bank (SNB) on Sunday confirmed reports that it provided "substantial liquidity assistance" to support UBS Group AG's takeover of Credit Suisse. The proposed deal involves UBS agreeing to buy Credit Suisse for over $3 billion, with the Swiss government providing over $9 billion to backstop some of UBS's potential losses from the deal.

SNB also said it was able to grant Credit Suisse a liquidity assistance loan of up to 100 billion francs backed by a federal default guarantee, based on the Federal Council's Emergency Ordinance. The acquisition was made possible with the support of the Swiss federal government and the Swiss Financial Market Supervisory Authority (FINMA) in order to ensure financial stability as well as "protect the Swiss economy," according to the announcement.

"By providing substantial liquidity assistance, the SNB is fulfilling its mandate to contribute to the stability of the financial system, and it continues to work closely with the federal government and FINMA to this end," the SNB noted.

Baha Breaking News (BBN) / NL