UBS and Credit Suisse bailed out by the State...

Switzerland became the latest European country to rescue its embattled banking system yesterday with a $60 billion (£34.8 billion) bailout of UBS. 

Credit Suisse, the country's other large bank, moved independently to shore up its battered balance sheet by raising SwFr10 billion (£5.2 billion) from three Middle Eastern shareholders. 

As part of a drive to restore confidence to its financial system, the Swiss Government injected SwFr6 billion into UBS through an issue of convertible bonds. Once the convertible bonds turn into shares, the Government will assume a stake of up to 9.3 per cent, making it the second-largest shareholder behind Government of Singapore Investment Corp (GIC). 

At the same time, UBS struck an extraordinary deal with the Government to transfer up to $60 billion of its toxic securities - including US sub-prime mortgages and student loans - into a new fund. More...

See also:

1. UBS, Credit Suisse won't go bust...
2. U.S.A.: The State takes over Freddie Mac and Fannie Mae...
3. Singapore, Malaysia Guarantee All Bank Deposits...
4. "A new financial order" as Europe stuns with €1.5 trillion bank rescue...
5. Laxmi Das, the Indian beggar who has opened a bank account. Wow!