While the nation's central bank and financial regulator publicly declared that Credit Suisse was sound, behind closed doors the race was on to rescue the nation's second-biggest bank.
The Swiss National Bank declined to comment while the finance ministry did not respond to a request for comment. A rainmaker who brokered a number of European bank rescues during the financial crisis, speaking on condition of anonymity, told Reuters that after seeing the U.S. banking collapses there was little doubt UBS would be called upon to shore up Credit Suisse.
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. She said was in close contact with U.S. Treasury Secretary Janet Yellen and British finance minister Jeremy Hunt. Both countries have large Credit Suisse subsidiaries employing thousands.
A spokesperson for FINMA said that although it laid emphasis on Britain and the U.S. because of the scale of Credit Suisse's business in those countries, it had also informed European authorities.Saudi investors, with roughly a 10% stake in the bank, put pressure on the Swiss, warning that they could take legal action if they did not recover some of their ill-fated investment, said another person with knowledge of the matter.
Bond holders should have read the small print. UBS has the same small print.
Swiss banking was created to hide nazi German funds ! The system is cracking with just two big banks, and one just crumbled !
One money laundering bank bailing out the other.