The President of the European Central Bank (ECB), Christine Lagarde, hailed today the “quick action” and the decisions taken by the Swiss authorities in relation to the Credit Suisse bank.
“I welcome the swift action and decisions taken by the Swiss authorities. They are key to restoring order to market conditions and ensuring financial stability,” the president said in a statement, available on the ECB’s website.
In her testimony, Christine Lagarde highlights that the eurozone banking sector is resilient, with strong capital and liquidity positions.
And he adds: “In any case, our policy toolkit is fully equipped to provide liquidity support to the eurozone financial system, if necessary, and to preserve the smooth transmission of monetary policy.”
The president of Switzerland, Alain Berset, announced today that the Swiss banking group UBS will buy Credit Suisse, considering that it is the best way to “restore confidence”.
Credit Suisse went through a turbulent week, having lost more than 25% of its stock value. On Thursday it became the first major bank globally to receive emergency public assistance since the 2008 financial crisis.
The negotiations that culminated in this operation involved, in addition to the two banks, the Swiss government and the central bank.
Source: TSF
