UBS Acquires Credit Suisse for $3.25 Billion Amidst Financial Turmoil

UBS is set to acquire Credit Suisse for almost $3.25 billion in a deal orchestrated by Swiss regulators to prevent market-shaking turmoil in the global banking system. Credit Suisse is among the 30 globally systemically important banks, and authorities were concerned about the fallout if it were to fail. The Swiss government is providing more than 100 billion francs in aid and financial backstops to make the deal go through. UBS officials said they plan to sell off parts of Credit Suisse or reduce the bank’s size in the coming months and years. The deal caps a highly volatile week for Credit Suisse, most notably on Wednesday when its shares plunged to a record low after its largest investor, the Saudi National Bank, said it wouldn’t invest any more money into the bank to avoid tripping regulations that would kick in if its stake rose above 10%.