BRINK OF GLOBAL PANIC

UBS to Buy Credit Suisse in Save for Global Financial System

The purchase was backed by the Swiss National Bank, the country’s central bank.

UBS, the largest bank in Switzerland, has agreed to purchase its rival Credit Suisse in what’s estimated to be a more than $2 billion transaction, the Financial Times reported and the Swiss government confirmed on Sunday. “With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” the Swiss National Bank, the nation’s central bank, said in the statement. The move will be partially backed by the Swiss National Bank. The decision to order the transaction was “one of great breadth for the stability of international finance,” Swiss President Alain Berset said on Sunday. “An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system,” he said. Credit Suisse is one of 15 systematically important banks in the world, according to the international Financial Stability Board.