Credit Suisse, UBS get $14.1 billion infusion

Switzerland's two largest banks, UBS AG and Credit Suisse Group will receive approximately $14.1 billion in funding from the Swiss government or outside investors in an effort to put the two financial giants on stable footing, the banks announced today.

Switzerland’s two largest banks, UBS AG and Credit Suisse Group will receive approximately $14.1 billion in funding from the Swiss government or outside investors in an effort to put the two financial giants on stable footing, the banks announced today.
In the first move, the Swiss National Bank will invest 6 billion Swiss francs ($5.3 billion) in Zurich-based UBS to strengthen its capital base.
Under the plan, UBS will sell convertible notes, giving the government a 9.3% stake in the bank.
Additionally, UBS reached an agreement with the Swiss National Bank to transfer up to $60 billion of illiquid U.S. securities and other assets to a separate fund that is controlled by the central bank.
In what was called an “unprecedented” operation, Jean-Pierre Roth, president of the Swiss National Bank, said the infusion by the government is “making a contribution to an essential element of the Swiss financial system at a time when financial markets have been in turmoil for some months now.”
In another move, Zurich-based Credit Suisse announced that it has raised approximately 10 billion Swiss francs ($8.8 billion) from a group of investors that is being led by the Qatar Investment Authority of Doha.
Additionally, Credit Suisse expects to announce a net loss of 1.3 billion Swiss francs ($1.14 billion) for the third quarter.