"This is Not A Bailout" Swiss Finance Minister on UBS Credit Suisse Merger

Speaking about the merger of UBS and Credit Suisse, Switzerland Finance Minister Karin Keller-Sutter said, "The UBS Bank and Credit Suisse's takeover is a commercial solution and not a bailout."<br /><br /><br />"The merger was prompted by concerns over Credit Suisse's liquidity, which could have caused collateral damage on the Swiss financial market and posed a risk of contagion for UBS and other banks," the statement said.<br /><br /><br />Commenting on the question asked by the reporter about the too-big-to-fail framework, the Finance Minister said, "The too-big-to-fail framework, which is typically applied to banks that cannot meet their liabilities, could not have been applied in this situation due to the unique nature of the problem." <br /><br /><br />"The bankruptcy of Credit Suisse would have had significant economic costs and the PLB, a guarantee to the central bank, was a well-known solution in other jurisdictions," Karin added.<br /><br /><br />Keller-Sutter further said that this solution is not a classic too-big-to-fail scenario, but a confidence crisis. Instead, the decision to merge UBS and Credit Suisse has been deemed the best solution, even though it resulted in an even bigger bank.<br /><br /><br />#creditsuisse #businessnews #banking #business #switzerland #news #topstories #latestnews #newslive #breakingnews #economy #finance <br />