The Swiss National Bank declined to comment while the finance ministry did not respond to a request for comment.
Customers had already pulled $110 billion from the Zurich-based bank in the last three months of 2022, outflows that it was fighting to reverse. Significant deposit outflows followed, the source who would go on to advise UBS on the merger told Reuters, declining to put a number on them. Swiss Finance Minister Karin Keller-Sutter, a former translator and teacher just months on the job, told the Sunday media conference that additional support for Credit Suisse had been agreed but held secret for fear of panicking people with a succession of emergency announcements.
European regulators were, in particular, worried that the Swiss could impose losses on bondholders – a radical step that they did take, as the costs of a rescue spiraled for taxpayers. The Credit Suisse board, interested in preserving some unity in an increasingly fractious setting, stood behind them, and argued for a payout to shareholders, said the person.