USB and Credit Suisse inject emergency funds

Switzerland’s banking giant USB are getting cash injection by the Swiss government of $5.3 billion francs in return for a 9.3 percent stake, while Credit Suisse will raise 10 billion francs from Qatar and other private investors.

There will be a new fund set up controlled by the central bank that will allow the largest Swiss bank UBS to unload $60 billion of toxic assets.

The announcement of the new measures pushed the share prices in both Credit Suisse and USB up after an earlier sharp drop. Switzerland have recapitalize their banks in turn making them the best capitalised banks in the world according to Dirk Becker an analyst at brokerage Kepler.

USB said in the third quarter it made net profits of 296 million francs, this was aided by its own credit and tax gains. However Credit Suisse after fresh write-down’s made a net loss of around 1.3 billion Swiss francs.

Source: forbes