The daily business briefing: March 20, 2023

UBS agrees to buy Credit Suisse, First Republic shares plunge after downgrade, and more

A First Republic Bank in California
(Image credit: AaronP/Bauer-Griffin/GC Images)

1. UBS to buy Credit Suisse in government-backed deal

Swiss banking giant UBS on Sunday agreed to buy rival Credit Suisse in a historic emergency deal aiming to restore calm amid a global banking crisis. UBS will pay $3.23 billion to acquire the 167-year-old Credit Suisse, Switzerland's second largest bank. UBS also will assume $5.4 billion in Credit Suisse losses, but the Swiss government, which pushed the deal, will backstop billions in potential losses. Just after the agreement was announced, the U.S. Federal Reserve, European Central Bank, and other major central banks issued statements seeking to ease market panic with assurances that customer deposits remain safe in the wake of the collapse of two regional U.S. banks earlier this month.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.