In an effort to prevent a global banking crisis, UBS, the largest bank in Switzerland, has agreed to acquire its troubled rival, Credit Suisse, in an emergency rescue deal brokered by the Swiss government.
Credit Suisse is defined as one of the 30 most systemic banks in the world by global regulators, and its potential failure could trigger a worldwide financial crisis.
The merger with UBS will allow Credit Suisse to stand up as one organization with a healthy bank, and U.S regulators have expressed support for the deal.
Meanwhile, New York Community Bank has agreed to buy a significant portion of Signature Bank, which went under last Sunday.
Customers of Signature Bank will now be customers of Flagstar Banks, as the FDIC sold about 35% of the business to New York Community Bank.
The deposit insurance remains the same, and the government’s intervention and the sale of the assets to another bank show confidence that customers will continue their business as usual.