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Credit Suisse-UBS Deal: Axel Lehman, chairman of Swiss bank Credit Suisse, has apologized to shareholders for bringing the bank to the brink of bankruptcy. He said that there were only two options left to save the bank, the first of which was to accept the merger of Credit Suisse with UBS or to allow the bank to sink. Axel Lehman said that we did not have time left to get the bank out of the crisis.
According to a Reuters report, the chairman of Credit Suisse has apologized to the shareholders for bringing the Swiss bank to bankruptcy after facing the anger of the shareholders. The bank’s chairman, Axel Lehmann, issued an apology saying that he had no time left to turn the bank around. He said that he was hopeful that there would be success in getting the bank out of the crisis. Axel Lehmann said that I want to apologize. I am sorry that I was unable to prevent the loss of trust. Credit Suisse has been acquired by UBS for which Switzerland had to bring emergency law.
Axel Lehman, who has been on the post of Chairman of Credit Suisse for a year, said that we had only two options left. He said that the week the decision to merge Credit Suisse with our rival UBS was taken, we believed that the bank could be turned around. But after the rapidly changing situation, the bank was continuously going downwards which meant that the bank could not be saved anymore.
Credit Suisse, which had been suffering losses for years, was on the verge of collapse. But the plan prepared by the Swiss authorities to rescue the bank included a merger with UBS. Axel Lehmann said that till the end, we fought hard to find a solution. We had only two options, deal or bankruptcy.
Credit Suisse was engaged in rejuvenating itself. But the collapse of Silicon Valley Bank in America caused a major setback, after which the difficulties increased. When the phase of withdrawal of deposits started, the Swiss government turned to UBS for bailout. UBS then agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its previous market value. The valuation offered to the 167-year-old bank Credit Suisse was much lower than its original value.
The threat to Credit Suisse is not only a crisis for this bank and Switzerland, but could have become a challenge for the banking system around the world. This is because Credit Suisse is one of the largest wealth manager institutions in the world. Its name is one of the 30 largest Global Systematic Important Banks and if it were to sink, its bad effect would be seen on the global financial system.
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