The Swiss authorities want to mediate the merger agreement between Credit Suisse and UBS Bank, so that Credit Suisse can deal with a possible disaster. Because, soon after the closure of two major banks in the United States, the news of Switzerland’s Credit Suisse Bank’s liquidity crisis was revealed. All in all, the global financial sector spent last week in panic. In particular, alarmed investors continued to dump shares of two closed US banks and Credit Suisse. As a result, the share price of these companies fell drastically. In such a situation, the Swiss central bank tries to sustain the Credit Suisse by providing liquidity.
Shares of Crédit Suisse rose on the news of the central bank loan on Thursday, but their shares fell 8 percent to 1.86 francs on Friday.
However, the bank’s customers and business partners are likely to withdraw. For example, from March 13 to 15, depositors withdrew $450 million from the bank.
