UBS and Swiss government secure $10 billion loss protection for Credit Suisse takeover.
UBS and the Swiss government have signed a loss protection agreement, which will come into effect once the takeover of Credit Suisse is completed. The provisions will see the Swiss government cover losses of up to 9 billion Swiss francs ($10 billion) following UBS' acquisition of its former rival. The administration added that it had facilitated the deal to "safeguard financial stability and thus avert damage to the Swiss economy," but had always agreed to guarantee a portion of losses due to UBS taking over a portfolio of assets that "do not fit its business and risk profile."
