: Yellen, Powell and Lagarde praise fast action by Swiss officials to ensure Credit Suisse deal


U.S. and European officials were quick to praise Swiss authorities for helping hammer out UBS’s UBS, -5.50% UBSG, -1.16% $3.25 billion deal to buy embattled rival Credit Suisse AG CS, -6.94% CSGN, -8.01% that was announced on Sunday.  “We welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. We have been in close contact with our international counterparts to support their implementation,” said a statement from Secretary of the Treasury Janet Yellen and Federal Reserve Board Chair Jerome Powell. Meanwhile, ECB President Christine Lagarde said actions taken by the Swiss authorities were “instrumental for restoring orderly market conditions and ensuring financial stability. The euro area banking sector is resilient with strong capital and liquidity positions. In any case, our policy toolkit is fully equipped to provide liquidity support to the euro-area financial system if needed and to preserve the smooth transmission of monetary policy.” The ECB hiked its key interest rate by 50 basis points, while the Fed, dealing with a separate banking crisis in the U.S. that has seen three institutions fail, will meet this week.

This article was originally published by Marketwatch.com. Read the original article here.

Previous article: UBS to buy Credit Suisse for more than $3 billion in deal backed by Swiss government
Next articleUBS reportedly reaches deal to buy Credit Suisse: Watch the press conference


Please enter your comment!
Please enter your name here