The US Treasury Secretary, Janet Yellen, and the President of the Federal Reserve (Fed), Jerome Powell, congratulated this Sunday the action of the Swiss authorities for the purchase of Credit Suisse by UBS.
“We welcome the announcements made today by the Swiss authorities to support financial stability,” Yellen and Powell said in a joint statement.
Swiss Finance Minister Karin Keller-Sutter said the federal government will provide a 9 billion Swiss franc guarantee to reduce the risks UBS bank incurs in acquiring Credit Suisse, which has been experiencing difficulties.
Karin Keller-Sutter also stated that a Credit Suisse failure could cause “irreparable economic damage”, not only for Switzerland, but for banks in the rest of the world.
Yellen and Powell reiterated in their statement released today that the US banking system is sound.
“The US banking system’s capital and liquidity positions are strong and the US financial system is resilient,” the US central bank governor and US Treasury secretary said. .
Source: TSF
