Crac Credit Suisse, UBS and the Swiss government sign the guarantee agreement to cover losses
The Confederation e Ubs have signed the warranty contract to cover losses in connection with the acquisition of Swiss credit by the Swiss banking leader. The Federal Council communicates it today.
This is a further step in view of the completion of the forced marriage between the two giants of the sector, which will probably be completed next Monday. With the acquisition of Swiss creditreads a government statement, Ubs also takes over an asset portfolio that is outside its core business and does not match its business and risk profile.
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For this reason, on 19 March Bern declared its willingness to bear part of the losses that could arise from the realization of these assets. In case of losses, the institution headed by Sergio Ermotti as known, it will assume the first 5 billion francs and the Confederation will take over the amount exceeding this figure, up to a maximum of 9 billion. Their calculation is based on the net value and therefore also takes into account any gains from portfolio construction. As recently disclosed by Ubsthe transaction will be completed on June 12 at the earliest.
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