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Punch-drunk Credit Suisse was fated to fall
An extraordinary weekend in Switzerland culminated in the collapse of Credit Suisse into the wary embrace of its great rival, UBS. The latter did not want to have to buy the former. For all the Swiss authorities’ insistence that this was a takeover – a ‘commercial solution’ according to the finance minister – UBS had no choice but to make a deal work. US Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen gave the game away, welcoming the move by ‘Swiss authorities to support financial stability’. For all the frantic efforts of the past few days, UBS’s leadership knew they might ... (full story)