TROUBLED bank Credit Suisse was bought by Swiss rival UBS last night in a shotgun deal to prevent a meltdown when financial markets opened today.
The deal, following a weekend of emergency talks with financial regulators, valued the bank at £2.6billion — down almost £4billion since last week.
1
Credit Suisse, 167 years old, was once worth £90billion.
But jitters led to billions being wiped off European banks.
Last it was trading at a low of £6.5 billion after its shares plunged.
Global regulators and central banks were in frantic talks over the weekend to prevent panic spreading.
The deal sees the Swiss government offering an £8billion backstop to guarantee against any losses, and the Swiss central bank putting up a huge £90billion buffer.
The Swiss National Bank said the deal was the best way to manage risks and restore confidence.
The Bank of England joined other central banks in praising the deal for “supporting financial stability”.
It said: “The UK banking system is well funded, and remains safe and sound.
