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Credit Suisse and the Acquisition by UBS: The End of 167 Years of Swiss Banking History
How one of Europe's most famous banks was sold in a weekend for 3 billion — one-fifth of its book value
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MarketPedia Editorial
11 min read·March 19, 2024
On March 19, 2023, Credit Suisse was acquired by UBS for 3 billion Swiss francs in an emergency operation. 167 years of banking history ended in 72 hours.
Years of accumulated scandals
Credit Suisse did not collapse suddenly in 2023 — it was the culmination of years of scandals: Greensill Capital, Archegos Capital, executive espionage, and a money laundering conviction.
The acquisition weekend
On March 17-19, 2023, the Swiss government orchestrated the acquisition of Credit Suisse by UBS. The price: 3 billion francs — against a book value of approximately 45 billion. AT1 bondholders lost everything — 16 billion wiped out.
Lessons
- Banking trust is fragile and self-fulfilling.
- AT1 bonds are riskier than many believe.
- Repeated scandals erode resilience.
# Credit Suisse# UBS# 2023# Switzerland# Banks# Crisis