Elon Musk Shocked by $100 Billion Liquidity Support for Credit Suisse Rescue Deal

The Epoch Times Header

Twitter CEO Elon Musk has expressed his shock that investment banking company UBS would get a $100 billion emergency credit line as part of a $2 billion deal to buy rival Credit Suisse.

Taking to Twitter, Musk responded to a tweet linking to an article reporting on the deal between the two financial institutions which was announced on March 19.

โ€œSo UBS buys Credit Suisse, shareholders donโ€™t get a vote, UBS gets $100 billion credit line from central bankโ€ฆ,โ€ Twitter user Wall Street Silver posted alongside the link. โ€œCrazy times this week. Band-aids flying everywhere to keep the system from falling apart.โ€

โ€œ$100 billion lineโ€ฆwow,โ€ SpaceX founder and Tesla CEO Musk replied.

UBS announced its takeover of Credit Suisseโ€”which is among 30 financial institutions known as globally systemically important banksโ€”on Sunday.

The move hopes to stave off a collapse of the 167-year-old  global investment bank as well as broader financial market chaos after shares of the Swiss lender plunged.

Deal Will โ€˜Protect Swiss Economyโ€™

Under the deal, which was mediated by the Swiss federal government, UBS is buying Credit Suisse for around $3.23 billion. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held, equivalent to CHF 0.76 per share, which is substantially less than  Credit Suisseโ€™s closing price of CHF 1.86 on March 17.

โ€œWith the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,โ€ the Swiss National Bank (SNB) said in a statement.

SNB said it will also provide more than 100 billion Swiss francs of liquidity to UBS in order to help facilitate a smooth deal.

โ€œIn addition, and based on the Federal Councilโ€™s Emergency Ordinance, Credit Suisse and UBS can obtain a liquidity assistance loan with privileged creditor status in bankruptcy for a total amount of up to CHF 100 billion ($108 billion),โ€ SNB said.

Byย Katabella Roberts

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Viewers like you

There is no constitutional authority for any spending on public broadcasting โ€“ period. Any questions: See Article 1, Section 8 of the U.S. Constitution.

Trans-wormal

No worm ever said "I am anthropomorphizing, I am a butterfly" to a toad or flock of geese and expected acknowledgement and support.

In Greenlandโ€™s Icy Capital, Past Troubles Haunt Hopes for the Future

As geopolitical realities and ongoing economic growth raise the stakes, U.S. interest in Greenland and the dream of independence may change things in a big way.

How a Chinese Government Statistician Was Forced to Report Fake Data

Chinese local govt employee produced a non-authorized report on bees and was visited by police and threatened with being sent to a mental hospital.

โ€˜This One Time, at Groomer Campโ€™

All Camp Brave Trails programs focus on helping LGBTQ+ youth find what they need most to thrive: their people, their place, and their passion.

News

Trump Announces US-China Trade Talks in London Next Monday

President Donald Trump said senior administration officials will meet with their Chinese counterparts in London for trade talks on June 9.

White House Adviser Gives Update on DOGEโ€™s Future Amid Muskโ€“Trump Spat

A top White House adviser said DOGEโ€™s work will likely continue amid a spat between its former chief, Elon Musk, and President Donald Trump.

Trump Administration Asks Supreme Court to Allow Dismantling of Education Department

Trump admin asked Supreme Court to allow it to resume dismantling U.S. Dept of Education, following a lower courtโ€™s previous order halting process.

FTC Warns of Rising Student Loan Scams, Says Fraudsters Took Millions From Borrowers

FTC is warning borrowers to steer clear of student loan debt-relief scams, after shutting down group of companies that allegedly charged millions in illegal fees and left customers worse off.

Walmartโ€™s Drone Delivery Coming to 5 More US Cities

Walmart is set to launch its drone delivery service in five more U.S. cities: Atlanta, Charlotte, Houston, Orlando, and Tampa, the company.

Court Orders Trump Administration to Restore AmeriCorps Funding to States

Federal court ordered Trump admin to restore AmeriCorps funding to states. The ruling comes as part of a lawsuit filed by 24 states and DC.

Tax Deductions You Can Take Without Itemizing

Itโ€™s not always beneficial to itemize. With IRSโ€™s current standard deduction for 2025 most Americans who canโ€™t itemize go with standard deduction.

US Economy Adds 139,000 New Jobs in May, Topping Market Forecasts

U.S. economy added 139,000 new jobs last month, surpassing economistsโ€™ expectations and indicating U.S. labor market remains in a robust position.
spot_img

Related Articles