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BANK QUAKE IN SWITZERLAND  

The collapse of the US Silicon Valley Bank (SVB) has had vast repercussions: Credit Suisse from Switzerland had to be rescued with loans worth billions.

A forced takeover of the ailing bank was negotiated until Sunday evening. Now it is clear: the Swiss banking giant UBS is taking over Credit Suisse for three billion francs (around 3.03 billion euros- 3.22 billion US-Dollars.)

The Swiss government announced this on Sunday evening. However, there still needed to be an agreement on the first offers from UBS for one and two billion francs.

The Swiss National Bank supports the takeover with solvency aid equivalent to around 101 billion euros. In addition, there are loss guarantees of billions of francs (about 9.07 billion euros) for UBS from the state.

This was preceded by a marathon of negotiations that lasted the whole weekend. The parties involved, from the two banks to top political and supervisory authorities representatives, participated.

The government urged UBS to take over to restore confidence in Credit Suisse and prevent the crisis from spreading to other banks in Europe.

An insider told Reuters that a full or partial nationalization of Credit Suisse had been considered an alternative.

Credit Suisse is one of the world's largest wealth managers and is one of 30 global systemically important banks whose failure would affect the entire financial system. Accordingly, events in Switzerland are keeping the financial world in suspense.

After several scandals, the bank got caught up in the maelstrom of the collapsed US institutions Silicon Valley Bank (SVB) and Signature Bank.

Most recently, she had to use emergency loans from the Swiss National Bank of up to CHF 50 billion. It is the first time since the global financial crisis of 2007/08 that a central bank has been forced to support such a large bank.