Explained- UBS to buy Credit Suisse for nearly $3.25B to calm the turmoil

In an effort to prevent future market-shaking turbulence in the global banking system, banking behemoth UBS is purchasing ailing rival Credit Suisse for about $3.25 billion.

After a plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) failed to satisfy investors and the bank’s clients, Swiss authorities pushed for UBS to acquire its smaller rival.

CreditSuisse - UBS Deal- Explained

UBS has $1.1 trillion in total assets, Credit Suisse has $575 billion

UBS agrees to buy Credit Suisse for $3.25 billion

Swiss National Bank agrees to offer a $107 billion liquidity line to UBS

Swiss president says takeover was the 'best solution'

Credit Suisse is one of the 30 financial organizations considered to be globally systemically significant banks