Swiss regulators defend rescue of Credit Suisse via UBS deal

By JAMEY KEATEN and DAVID McHUGH
Associated Press

GENEVA (AP) — The head of the Swiss financial regulator has defended the rescue of Credit Suisse through a controversial takeover by rival bank UBS as the best solution with least risk of spreading a wider crisis and severe damaging Switzerland’s standing as a financial center. Urban Angehrn, head of the Swiss Financial Market Supervisory Authority, said the merger “minimized risk of contagion and maximized trust.” He told reporters Wednesday that a possible takeover by the Swiss government or putting Credit Suisse into insolvency proceedings had serious drawbacks. The financial regulator and other Swiss officials orchestrated a $3.25 billion takeover of Credit Suisse by UBS last month after Credit Suisse’s stock plunged and jittery depositors pulled out their money.