UBS no longer taking state aid for Credit Suisse takeover

ZURICH: Swiss banking giant UBS voluntarily put an end Friday to the state and central bank support that smoothed its takeover of stricken Credit Suisse, saying they were no longer necessary.

UBS agreed to buy its rival in a 3-billion-franc ($3.5 billion) fire sale hastily arranged over a March weekend by Swiss authorities afraid that a weakened Credit Suisse would go bankrupt.

UBS was granted up to 9 billion francs for protection against any losses incurred selling certain Credit Suisse assets, along with 100 billion Swiss francs in liquidity assistance provided by the Swiss National Bank (SNB).

These loans ensured that both banks had sufficient liquidity to carry out the takeover. They also assured protection for UBS against the risk of extreme losses, the bank said in a statement Friday, as it had “very limited” time to study Credit Suisse’s assets during takeover negotiations.