Switzerland’s second largest bank (Credit Suisse Bank) and one of the most influential banks in global history, was sold to UBS, which is Switzerland’s largest bank and a long-time rival. * The deal was hurriedly brokered by Swiss government and regulators in a bid to not just contain the crisis of confidence in Credit Suisse, which reportedly faced withdrawals of close to $10 billion last week, but also to stop the contagion to other banks.* UBS will be paying around $3.2 billion to Credit Suisse. According to The Wall Street Journal, “The Swiss government said it would provide more than $9 billion to backstop some losses that UBS may incur by taking over Credit Suisse. * The Swiss National Bank also provided more than $100 billion of liquidity to UBS to help facilitate the deal.”* This is a spectacular collapse for the 166-year old bank. But what is even more stunning is that this is the third major bank that has collapsed in just the past 10 days..Source : Indian Express
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