ExplainSpeaking | Credit Suisse sold to UBS: Why banks are in turmoil across world

From the Explained page of The Indian Express

Overnight news came out that in a distress sale, Credit Suisse, Switzerland’s second largest bank and one of the most influential banks in global history, was sold to UBS, which is Switzerland’s largest bank and a long-time rival. The deal was hurriedly brokered by the Swiss government and regulators in a bid to not just contain the crisis of confidence in Credit Suisse, which reportedly faced withdrawals of close to $10 billion last week, but also to stop the contagion to other banks.   This is a spectacular collapse for the 166-year old bank. But what is even more stunning is that this is the third major bank that has collapsed in just the past 10 days.   What’s happening to banks across the world? What is the US Fed and the other central banks doing to arrest the contagion?

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