Poor UBS and Credit Suisse. The bulge bracket Swiss banks were left out of Tuesday’s $250 billion bank infusion. We suppose it’s because they’re not U.S. banks, but they certainly throw their weight around on our shores.
So, why shouldn’t they get a nice capital infusion, too? Fortunately, the Swiss government is abandoning its traditional neutral stance and taking a stake in UBS.
Credit Suisse, meanwhile, doesn’t seem to need the money, because if the firm is struggling, nobody’s reported on it. But they’re still trying to raise some from Qatar.
Hey, maybe tomorrow someone can throw a little money in the direction of Deutsche Bank and Lazard? Not that they need it, but just for the sake of parity. Bailouts for everybody!
WSJ: The Swiss government said Thursday it will inject six billion Swiss francs ($5.3 billion) of fresh capital into UBS AG in return for a 9% stake, as the Swiss central bank announced plans to shift $60 billion worth of toxic assets off the bank’s balance sheet.
The Swiss National Bank, the country’s central bank, said it will provide a long-term loan to purchase toxic assets worth up to $60 billion from UBS. The SNB will provide long-term financing of up to $54 billion for a special purpose vehicle to hold these assets…
Separately, Credit Suisse Group, less affected by the banking crisis than UBS, said it plans to raise around 10 billion francs in fresh capital with the help of a Qatar-based fund. The bank said it won’t receive capital from the Swiss government.
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