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UBS's rapidly shrinking Credit Suisse rescue

By Paul J. Davies

24 Apr 2023 · 2 min read

Editor's Note

Credit Suisse was already on "emergency life support" when the USB rescue deal was struck. It has since lost clients and revenue, leaving it in a "very bad state," writes Bloomberg's Paul J. Davies.

The crisis of confidence among Credit Suisse clients in March really was as bad as it seemed. At its worst, the Swiss bank was being propped up by central bank loans of 168 billion Swiss francs ($189 billion), equivalent to more than one-third of its total liabilities at the end of 2022.

Swiss authorities have stressed repeatedly that Credit Suisse wouldn't have survived if it had been allowed to open independently on March 20 rather than being rescued by UBS, in a deal agreed the day before, due to complete this year. The bank's first-quarter results released Monday back up that claim.

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