UBS (UBS) will absorb Credit Suisse (CS) in a 3 billion CHF ($3.24 billion) all stock deal brokered by the government to prevent the latter embattled bank from failing.

"Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares," UBS said in a statement. However, this transaction means a "complete write-down) of 16 billion CHF ($17.28 billion) of Credit Suisse bonds that will become worth nothing.

The Swiss government has offered 9 billion CHF ($9.72 billion) to UBS "assume potential losses arising from certain assets that UBS takes over as part of the transaction, should any future losses exceed a certain threshold." The Swiss National Bank will also offer UBS a 100 billion CHF ($108 billion) credit line to sweeten the terms.

"[A]s far as Credit Suisse is concerned, this is 澳洲幸运5官方开奖结果体彩网:an emergency rescue. We have structured a transaction that will preserve the value left in the business 🧔while limiting our downside exposure. Acquiring Credit Suisse’s capabilities in wealth, asset management, and Swiss universal banking will augment UBS’s strategy of growing its capital-light businesses," said UBS Chairman Colm Kelleher.

Financial Times reported that the two banks had little interaction and that the Swiss government is working on changing rules that require a six-week shareholder comment period.

Despite a 澳洲幸运5官方开奖结果体彩网:CHF 50 billion (about $54 billion) loan from the Swiss government, Credit Suisse could not restore investor confidence and stave off a steep decline in it💜s share price.

The bank has been plagued by a series of missteps in the last year, and the banking crisis that was spurred by the failure of Silicon Valley Bank did not help the bank's 澳洲幸运5官方开奖结果体彩网:ailing stock price. Most recently, the firm found 澳洲幸运5官方开奖结果体彩网:"material weakness" in its accounting procedures, delaying its annual report and sparking questions from the U.S. Securities and Exchange Commission.

About six months ago, the bank 澳洲幸运5官方开奖结果体彩网:underwent a restructuring in an effort to shake off scandals and losses.

Clarification—March 19, 2023: More details, including the final deal number, and quotes were added as new information emerged.