Bailout for a Swiss bank, the reaction of the markets In the negotiations at the end of Saturday, a bailout of 3 billion francs or 3.4 billion euros was agreed upon for Credit Suisse. The deal comes shortly before New Zealand, Australian, and Eastern European business shares launch on Monday. A country like Switzerland, known for its safe banking system and financial hub, is an unusual case of this kind.
The financial crisis at the Swiss bank Credit Suisse has also raised questions about Switzerland's financial system.
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Shares in Credit Suisse were down 61.9% before the market opened in Zurich on Monday morning.
After this deal, the shares of the bailout UBS Bank also recorded a decrease of eight percent. Swiss authorities had asked UBS to take over its smaller rival, Bank Credit Suisse. Earlier, the financial crisis of two banks in the US raised fears that smaller banks could go bankrupt internationally.
Credit Suisse is one of the top thirty financial institutions, which are considered to be major banks internationally.
Officials were concerned that the bank's failure could have an impact on the global financial system. In this context, Swiss President Alain Birse said in his statement on Sunday night that the uncontrollable collapse of Credit Suisse may cause extraordinary negative effects on the country and the international financial system.
It should be noted that in the year 2008, the global financial crisis was caused due to the bankruptcy of some American financial institutions, the effects of which can be seen in the financial institutions till now.
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