UBS agrees to takeover of stricken Credit Suisse for $3.25bn

The Swiss government and the banking regulator put together the deal once it became clear that a loan from the central bank would not be enough to stabilise Credit Suisse. Photograph: Fabrice Coffrini/AFP/Getty Images

The Swiss government has forced through the takeover of stricken bank Credit Suisse by rival UBS for almost $3.25bn (£2.65bn) – well below its market value – amid fears that a failure to protect depositors would trigger a new global banking crisis.

After a weekend of frantic talks, the Swiss government and the banking regulator brokered a deal once it became clear a $54bn loan to Credit Suisse from the Swiss central bank had failed to halt the precipitous slide in its share price.