UBS and Credit Suisse stabilize and open higher on the Zurich Stock Exchange

The shares of the Swiss bank UBS began the trading day on Tuesday with a rise of 2.5% and stood at 17.7 francs per share, while those of Credit Suisse, which will be absorbed by the former in the coming months, they opened with a slight increase of 0.2% and remain at 0.8 francs.

The two entities lived on Monday, one day after the announcement of the purchase of the second by the first, an intense day on the Zurich stock market: UBS began losing 8%, although at the end of the day its shares stabilized and closed with up 1.26%, while Credit Suisse plunged 55.74%.

UBS acquired Credit Suisse at the behest of the Swiss Government, to avoid its bankruptcy, convinced that this would cause a financial crisis that would have had international repercussions due to the complex commercial relations that exist between banks around the world.

The operation will not be submitted to the approval of the shareholders of either of the two banks involved, thanks to a legal modification approved by the Swiss Executive.

This solution “is not only decisive for Switzerland (…) but for the stability of the entire world financial system”Swiss President Alain Berset at a press conference on Sunday evening in Bern.

The Swiss National Bank has committed up to 200 billion francs (200,500 million euros, 215,503 million dollars) in liquidity for both banks if necessary.