Fallout: The Financial Crisis

Swiss bank bailout ends risks

Megan Williams Oct 16, 2008
HTML EMBED:
COPY
Fallout: The Financial Crisis

Swiss bank bailout ends risks

Megan Williams Oct 16, 2008
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: First, another major bank bailout — this time in Switzerland, as the two leading Swiss banks, UBS and Credit Suisse, receive big cash injections. Switzerland is perhaps the last of the world’s financial centers to pour money into ailing banks. But as Megan Williams tells us, the Swiss rescue is not coming from the government alone.


Megan Williams: Switzerland’s biggest bank, UBS, will get a $5 billion injection from its government. It will also get to pass on $60 billion of bad assets to the country’s central bank. But the next largest Swiss bank has turned to global investors instead. Credit Suisse has raised about $10 billion — some of it from a major shareholder in Qatar.

ING financial analyst Alain Tchibozo says most of the shareholder risk in the banks is over:

Alain Tchibozo: They have already depreciated a lot of the assets, so we shouldn’t expect much more further losses.

Tchibozo says now that it’s clear the banks won’t go under, their dividends will likely rise in the new year.

I’m Megan Williams for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.