The Swiss National Bank (SNB) has announced on Sunday in its statement that Union Bank Switzerland (UBS) is taking over Credit Suisse for $3.25 billion. UBS chairman, Colm Kelleher explained that the acquisition came as an emergency rescue for Credit Suisse. Axel Lehmann, Credit Suisse chairman, added "this has been an extremely challenging time for Credit Suisse... the announced merger represents the best available outcome." The shareholders' approval of this deal will not be required, as the Swiss government agreed to change the law to remove any scepticism about the deal. The deal's worth is about 60 percent less than what the bank was worth when markets closed on Friday. Throughout the past two years, Credit Suisse has lost 84 percent of its shares' value; posting a loss of $7.9 billion in the past year only. Last year's numbers are the bank's worst recorded loss since the global financial market. The bank acknowledged material weakness in its bookkeeping last week. Shares of the bank fell 25 percent over the last week. The collapse of Silicon Valley earlier this month contributed to global financial markets being increasingly alerted. The Bank of England stated in a statement that it has been cooperating with concerned international parties to support preparation and implementation of the arrangement. "The decisions taken by the Swiss authorities... are instrumental for restoring orderly market conditions and ensuring financial stability," president of the European Central Bank, Christine Lagarde commented on the deal. U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell also welcomed the announcement to "to support financial stability" in a joint statement.
