Fed and US Treasury celebrate UBS' purchase of Credit Suisse

By Barbara Pereira / 19/03/2023 / 1 minute reading

The Secretary of the Treasury of the United States, Janet Yellen, and the president of the Federal Reserve (Fed, central bank), Jerome Powell, celebrated this Sunday (19) the purchase of the bank Credit Suisse by the largest Swiss bank, UBS.

“We are pleased with the announcements made today by the Swiss authorities to support financial stability,” the authorities said in a joint statement. The two institutions also indicated that they were in “close contact” with their international counterparts to “support the completion” of the operation.

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After the sudden bankruptcy of the American bank Silicon Valley Bank (SVB), the banking sector ended a dark week in the markets. Concerns initially focused on cases of Credit Suisse and FirstRepublic, a bank based in San Francisco. Its stock valuation has decreased by more than 25% and 80%, respectively, in the last week.

Yellen and Powell also emphasized that “the American banking system is solid in terms of capitalization and liquidity and the American financial system is resilient.”