The future of Credit Suisse has been decided: the big bank UBS will take over its competitor.

In order to reduce any risks for UBS when buying CS, the federal government has given the big bank a guarantee of CHF 9 billion .

The SNB is supporting the takeover with a loan totaling up to CHF 100 billion .

Finance Minister Karin Keller-Sutter : "It's the best possible solution." However, the Federal Council regrets that CS was not able to solve its problems on its own.



Question about the scope of the SNB aid

Sabine Gorgé from the SRF Bundeshaus editorial team wants to know from Thomas Jordan whether the National Bank has granted a total of 100 billion in financial aid or whether this amount has been granted in addition to the 50 billion announced at the end of the week. The SNB boss explains that it is a cumulative amount. In addition, another 50 billion would be added. When asked by the journalist, he explains that the total is about 200 billion francs.

CS management will remain in effect until the merger

Finma Director Urban Angehrn explains that the management of Credit Suisse will continue to work until the takeover of UBS is completed.



Are institutional CS investors and the AHV harmed?

Thomas Jordan asserts that a purchase price for the Credit Suisse shares has been agreed. "Of course, the shareholders will have to accept a loss." However, one has to consider that this loss would have been much greater if the present solution had not been achieved.



Question about the classification of the solution

A journalist asks Finance Minister Karin Keller-Sutter whether the merger of CS and UBS is a government solution. Keller-Sutter emphasizes that this is a private takeover. The federal loss guarantee is a kind of insurance.

According to Keller-Sutter, a temporary takeover of Credit Suisse by the federal government with a so-called Temporary Public Ownership (TPO) would have posed an enormous risk for taxpayers. The federal government has examined this scenario.

It was not clear from the start that the merger of UBS and CS would come about, said Keller-Sutter. She is grateful to UBS and CS for taking this step in favor of market stability and creditworthiness. It was the only possible solution, said Keller-Sutter.



Will UBS be rewarded by the federal government?

Karin Keller-Sutter answers a journalist's question: «Yes, we are grateful to UBS. But we are also grateful to CS. We are grateful that this merger came about in the interests of the Swiss financial center.» Any other solution would have triggered a financial crisis. "A takeover by the federal government would have been an enormous risk for the taxpayer". One sees a clear commitment to Switzerland in the willingness of UBS.



What does the Competition Commission say about the takeover?

A journalist asks whether the Competition Commission (Weko) will examine the takeover. Weko is being consulted, says a Finma representative. In terms of the overriding interest, ComCo could agree to the takeover. Finance Minister emphasizes that it is a matter of securing the deposits of bank customers.



How does the UBS loss guarantee work?

The federal government has promised up to nine billion. Finance Minister Karin Keller-Sutter explains that no careful examination within the usual framework has been possible in the past few days. Colm Kelleher from UBS adds that they have no interest in losing the money. "It's a kind of insurance solution."



Will a (too big) banking giant emerge?

When asked by a journalist from the “Wochenzeitung”, Marlene Amstand from Finma referred to the “too big to fail” set of rules. These would continue to apply. As an exception, only the deadlines would be adjusted in the present case. Thomas Jordan emphasizes that the SNB and Finma are now examining the two banks' business models in detail. Colm Kelleher adds: "Size alone is not the deciding factor". In addition, the UBS man emphasizes that you also take on major risks from CS.



When will the merger be completed?

A journalist asks when the merger will be completed. Colm Kelleher, UBS Group chairman, says shareholders don't have to approve the deal. It would take weeks, months at the most, until the takeover was completed.



Should CS customers be concerned?

Karin Keller-Sutter explains that this solution would benefit both customers and employees of Credit Suisse. “I have an account with Credit Suisse myself – more specifically, a savings account and a mortgage. So I have a relatively broad customer relationship.»



Who is to blame for the "disaster"?

A journalist wants to know from Axel Lehmann, Chairman of the Board of Directors of Credit Suisse, "who is responsible for this disaster". In Lehmann's view, the problems that have built up over the years have now tipped the scales and broken the bank's neck.

"We have been caught up by legacy issues and risks that have now materialized," he said. CS has not been out of the headlines since 2021 with the collapse of the Archegos hedge fund and the liquidation of the Greensill fund. Many customers have been very loyal for a long time.

Last fall, there was a "storm" on social media that had "enormous effects," said Lehmann. Blame for the liquidity crisis is a culmination of things that have built up over many years.



At what interest rate does the SNB grant liquidity

According to the head of the National Bank, Jordan, various financial resources are used for the liquidity injection. All financial aid would be provided with a risk premium, which the federal government would be entitled to. According to Finance Minister Keller-Sutter, this amounts to 1.5 percent.



Can UBS still withdraw from the deal?

Colm Kelleher says his bank's withdrawal from the agreement is not an option. The deal is important for the entire financial world.



Will the takeover restore confidence in banks?

SRF Federal House Editor Urs Leuthard asks whether the measures have restored confidence in the banks. Federal President Alain Berset answers. "It will take time." It is a great commitment of official Switzerland and its authorities.

"You will see what happens in the next few days and months." Berset describes the solution as strong. The reactions from abroad are positive, emphasizes the Federal President.

UBS has a solid business model, says SNB President Thomas Jordan. "That should bring stability." There is also enough financial resources. He also stressed that foreign counterparts would welcome the solution. Marlene Amstad, Chairwoman of the Board of Directors of Finma, says that a viable solution has been found.



Was there a campaign against the CS?

Marlene Amstand answers the question of a journalist who was present that there were rumors in the social media last autumn that led to capital outflows. Thanks to the strict equity requirements, the bank was initially able to survive this.



Is there a case of "too big to fail"?

No, explains Marlene Amstad, Chair of the Board of Directors of Finma. Instead, there was a crisis of confidence. For this reason, it was concluded that a merger of CS and UBS was the best solution. Nonetheless, the capital and liquidity requirements for the new bank would be increased in accordance with the rulebook.

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How much does this action cost taxpayers?

A journalist asks what the takeover of CS by UBS will cost taxpayers. Finance Minister Karin Keller-Sutter replies that it is not a "bail-out", i.e. a rescue operation by the state. Instead, it is a private takeover.

Bankruptcy would have resulted in large losses. "The taxpayers have only a small risk here," says the finance minister. Any other scenario in a "too big to fail" scenario would have incurred more costs, says Keller-Sutter.



Why is the Federal Council only communicating today?

The question and answer session is open. A journalist would like to know why the Federal Council did not provide information about its resolutions until this Sunday evening.

Federal Councilor Karin Keller-Sutter explains that they were convinced that the liquidity injection of CHF 50 billion on Wednesday would last into the weekend. With a "salamitic" in communication, they wanted to avoid uncertainty.



Berset: "We have done everything for the stability of Switzerland"

Federal President Alain Berset concludes:

We have done everything to minimize the negative impact on the country's stability.



Lehmann: "Today marks a clear turning point"

Axel Lehmann, Chairman of the Board of Directors of Credit Suisse, takes the floor: "Today marks a clear turning point." It's a sad day. Lehmann recognizes CEO Ulrich Körner's efforts to transform the bank.

"The most recent events - emanating from US banks - hit us at an inopportune moment," says Lehmann. The loss of confidence over the past few days has shown him that Credit Suisse cannot continue to exist as it is. «The decision was not easy. There wasn't a good choice." The clear focus is on the 50,000 employees, says Lehmann.

“We are now looking ahead.” The takeover by UBS brings stability, says Lehmann at the end.



Kelleher: Ralf Hamers will remain CEO of the merged bank

Colm Kelleher, Chairman of the Board of Directors of UBS, explains: "This integration ensures the future of the Swiss financial center." UBS would greatly reduce Credit Suisse's investment area and adapt it to the bank's "conservative asset management culture". Kelleher also announces that Ralph Hamers will continue to serve as the bank's CEO.



Amstad: Demands on merged bank will increase proportionately

Marlene Amstad (Finma) says that the demands on the now even larger bank resulting from the takeover would increase proportionately. She emphasizes that Credit Suisse functions would also work from Monday.



Marlene Amstad: "Credit Suisse has fallen into a negative spiral"

Marlene Amstad, Chairwoman of the Board of Directors of Finma, describes the agreed solution as viable and stable. Credit Suisse has always met the regulatory requirements in recent months. Despite this, customer confidence has been lost, after all, the events in the USA have led to a negative spiral, says Amstad. The problems in the crisis of confidence had become too great, which is why the authorities had to intervene.



Thomas Jordan: "Credit Suisse is systemically important"

Thomas Jordan, President of the National Bank, explains the details of the liquidity injection of up to CHF 100 billion. These funds would be made available on the basis of existing regulations. The measure had become necessary due to Credit Suisse's status as a "systemically important bank of global importance."



Karin Keller-Sutter: All resolutions are emergency law

Finance Minister Karin Keller-Sutter explains the instruments for the takeover of Credit Suisse by UBS. She says that all decisions are emergency law based on the constitution. “The constitution also stipulates that emergency law is temporary.” Therefore, the emergency law decisions should be submitted to Parliament within the deadline.

The Federal Council regrets that CS was not able to solve the problems itself, says the finance minister. It is also regrettable that the former model bank got into this situation. The takeover of UBS aims to restore trust. Although this measure has risks, they are lower than those of a financial crisis triggered by a bankruptcy of Credit Suisse, according to Keller-Sutter.



Federal guarantee of nine billion Swiss francs against risks

Finance Minister Karin Keller-Sutter explains the Federal Council's motives: "The primary goal is to protect Switzerland's interests". A decline of Credit Suisse would have been devastating for the local economy.

In addition to the liquidity support promised by the SNB, the Federal Council has given a guarantee of nine billion for any losses incurred by UBS. She calls the present solution “solid”.

The guarantee only comes into effect if UBS's losses exceed a certain threshold. First, UBS would bear these losses, only in the second step would the federal government also bear losses.



100 billion francs from the SNB as help for the takeover

The SNB supports the takeover of CS by UBS with a liquidity support of CHF 100 billion to both banks, explains Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank (SNB).



Alain Berset: UBS takes over Credit Suisse

"The Federal Council supports the solution that UBS takes over Credit Suisse," says Federal President Alain Berset. The Federal Council supports the takeover by creating the framework conditions for it. "It's a big announcement for private customers." If no solution had been found, a major impact should have been expected, according to Berset. He repeats the announcement in English.