However, the flight of assets suffered by the bank last week and the large fall in its share price in a matter of days have opened up the real possibility of bankruptcy,”which would have had a huge collateral impactwhich could infect UBS and to other banks” in the world, the minister indicated.
The authorities confirmed that the past day 15 a possible merger was already discussed between Credit Suisse and UBSbut that it was decided to keep everything in strict reserve to avoid further nervousness in the markets.
“The solution we found is solid and it has been adjusted to stabilize the situation and provide certainty to the financial markets,” Berset said.
He UBS chairman, Colm Kellenher, present at the same press conference, confirmed that this operation will not be subject to a shareholder vote and that the final conclusion could take weeks and even months to be fully approved by the regulatory authorities.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
