UBS acquiring Credit Suisse is 'no bailout': Swiss finance minister

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UBS acquiring Credit Suisse is 'no bailout' says Swiss finance minister — but top economist Mohamed El-Erian disagrees

"It's full of contradictions," El-Erian told Bloomberg TV."It's a private sector solution, but has government intervention. It's not clean, but of the available options, this was the best one that they could have had."

El-Erian, who is the chief economic advisor to Allianz and the president of Queens' College at Cambridge University in the UK, was referring to several other options for Credit Suisse — includingSwiss finance minister Karin Keller-Sutter's"This is no bailout. This is a commercial solution because UBS is taking over Credit Suisse," Keller-Sutter said at a press conference in Bern on Sunday.

"It's not money we give to credit Swiss or UBS so we find that this solution is the best solution, and I hope it will also be welcomed by other jurisdictions," she added. Keller-Sutter also said on Sunday that letting the bank go bankrupt could hit the Swiss and international financial systems badly. "The bankruptcy of Credit Suisse would have had a huge collateral damage - on the Swiss financial market also internationally," she said. was shut down by regulators on March 10, spurring jitters of a contagion that could lead to a broader economic crisis.

 

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