The Fed approves the UBS and Credit Suisse deal in America
The Federal Reserve Board of Governors (the US central bank) said it approved the acquisition of the US companies of Credit Suisse by the UBS Group, thus removing another major obstacle to completing the Swiss-brokered bailout.
The Fed said in a statement on Friday that UBS had committed to giving the US central bank the implementation plan for combining its activities and operations in the United States with those of Credit Suisse within three months of the completion of the deal.
And the statement stated that the plan will include more stringent requirements, some of which relate to the bank's liquidity standards, due to the increase in the size of the institution, according to "Reuters".
The Fed must review bank mergers when a bank with total assets of more than $250 billion buys any voting stakes in a company with assets of $10 billion or more.
After years of scandal and losses, the "Credit Suisse" bank was about to collapse before its Zurich-based competitor, UBS, came to its rescue through a merger deal that was supervised and funded by the Swiss authorities last month.
UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its previous market value.