UBS Cuts Ties with Swiss Government, Terminates Loss Protection Deal

UBS has announced the termination of a 9 billion Swiss franc loss protection agreement and a 100 billion Swiss franc public liquidity backstop that were put in place by the Swiss government when it took over Credit Suisse in March. UBS stated that this decision followed a comprehensive assessment of Credit Suisse's non-core assets covered by the liquidity support measures. Credit Suisse has also fully repaid the emergency liquidity assistance loan of 50 billion Swiss francs to the Swiss National Bank. The Swiss government confirmed that these measures, created under emergency law, will cease to exist, and a bill will be submitted to introduce a public liquidity backstop under ordinary law.