U.S. and European officers had been fast to reward Swiss authorities for serving to hammer out UBS’s
$3.25 billion deal to purchase embattled rival Credit Suisse AG
that was introduced on Sunday. “We welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. We have been in close contact with our international counterparts to support their implementation,” stated an announcement from Secretary of the Treasury Janet Yellen and Federal Reserve Board Chair Jerome Powell. Meanwhile, ECB President Christine Lagarde stated actions taken by the Swiss authorities had been “instrumental for restoring orderly market conditions and ensuring financial stability. The euro area banking sector is resilient with strong capital and liquidity positions. In any case, our policy toolkit is fully equipped to provide liquidity support to the euro-area financial system if needed and to preserve the smooth transmission of monetary policy.” The ECB hiked its key rate of interest by 50 foundation factors, whereas the Fed, coping with a separate banking disaster within the U.S. that has seen three establishments fail, will meet this week.