UBS to Buy Credit Suisse for $3.1 Billion as Banking Crisis Continues

UBS, Switzerland’s biggest bank, has agreed to buy its rival Credit Suisse in an emergency rescue deal.

The Details: The Swiss government authorized the roughly $3.1 billion purchase on Sunday, saying it would "secure financial stability and protect the Swiss economy." Credit Suisse, the second-largest bank in Switzerland, announced last week that it would borrow up to 50 billion Swiss francs ($53.68 billion in U.S. dollars) from the Swiss National Bank to quell customer fears after its largest investor, Saudi National Bank, said it didn't plan to increase its nearly 10% investment.

For Context: UBS's purchase is aimed at easing financial market panic after two American banks, Silicon Valley Bank and Signature Bank, failed earlier this month. Central banks around the world have raised interest rates and taken other actions to combat high inflation over the last year, hurting the confidence of investors and borrowers. The international Financial Stability Board had designated Credit Suisse as one of 30 "systematically important" global financial institutions considered "too big to fail." Meanwhile, the Wall Street Journal (Center bias) said Credit Suisse "has long been viewed as the problem child of the banking system."

How the Media Covered It: Left- and center-rated sources covered the deal as a top story Monday. Some moved to draw distinctions between Credit Suisse's failure and Silicon Valley Bank's demise. The homepages of finance-focused sources, from Fox Business to CNN Business, described the story as the latest development in the "banking crisis."