UBS agrees emergency rescue of Credit Suisse

The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.
 
The Bank of England said it welcomed the “comprehensive set of actions”. 
 
Credit Suisse shareholders were deprived of a vote on the deal and will receive one share in UBS for every 22.48 shares they own, valuing the bank at $3.15bn (£2.6bn).
 
At the close of business on Friday Credit Suisse was valued at around $8bn (£6.5bn).
 
But the deal has achieved what regulators set out to do – secure a result before the financial markets opened on Monday.
 
In a statement Switzerland’s central bank said “a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation”. 
 
The federal government said in order to reduce any risks for UBS it would grant a guarantee against potential losses worth $9.6bn (£7.9bn).