Swiss gov't providing a 9 billion franc loss guarantee

To enable UBS to take over Credit Suisse, Switzerland's federal government said it is providing a loss guarantee of a maximum of 9 billion francs ($9.70 billion) for a clearly defined part of the portfolio. This will be activated if losses are actually incurred on this portfolio.

To enable UBS to take over Credit Suisse, Switzerland's federal government said it is providing a loss guarantee of a maximum of 9 billion francs ($9.70 billion) for a clearly defined part of the portfolio.

This will be activated if losses are actually incurred on this portfolio. In that eventuality, UBS would assume the first CHF 5 billion, the federal government the next 9 billion francs, and UBS would assume any further losses. ($1 = 0.9280 Swiss francs)