US hails Swiss action on Credit Suisse

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US Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell on March 19 welcomed the decision of their colleagues from Switzerland to sell Credit Suisse.

“We welcome today’s statements by the Swiss authorities in support of financial stability… We are in close contact with our foreign partners to support their implementation,” the joint statement says.

It is noted that the US financial system is in a stable position, despite the collapse of two American banks.

Earlier in the day, it was reported that the largest Swiss bank UBS will acquire Credit Suisse for $3.24 billion (3 billion Swiss francs). Shareholders of distressed Credit Suisse will receive 1 UBS share for every 22.48 Credit Suisse shares, equivalent to CHF 0.76 per share, for a total award of CHF 3 billion.

As the National Bank of Switzerland also noted that day, this decision will ensure financial stability and protection of the country’s economy.

Prior to that, on March 15, Credit Suisse shares fell 25%, hitting a new all-time low. At the bottom point, the value of the credit institution’s securities amounted to 1.7 Swiss francs per share. In this regard, there was a decrease in the leading index of European banks Euro Stoxx Banks by 7%.

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