UBS to buy Credit Suisse in $2 billion all-stock deal

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UBS (UBS) will join Credit Suisse (CS) in a $2 billion all-stock deal brokered by the government to save the beleaguered bank from failure.

The Financial Times reports that there was little conversation between the two banks, and that the Swiss government is working on changing rules that require a six-week shareholder comment period. Swiss authorities will also offer a $100 billion credit line to UBS to soften terms.

Despite a CHF 50 billion (about $54 billion) loan from the Swiss government, Credit Suisse was unable to restore investor confidence and prevent a steep decline in its share price.

The bank has been plagued by several missteps over the past year, and the banking crisis triggered by the failure of Silicon Valley Bank didn’t help the bank’s ailing stock price. Most recently, the firm found “material weaknesses” in its accounting procedures, delaying its annual report and raising questions from the US and Exchange Commission.

About six months ago, the bank underwent a restructuring in an effort to address scandals and losses.

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