"In March 2023, UBS acquired Credit Suissethe second-largest bank in Switzerland—for about USD 3.25 billion in an emergency takeover to prevent its collapse. Credit Suisse had been weakened by years of scandals, poor risk management, and heavy losses, notably from the Archegos (US based hedge fund) and Greensill (UK based financial institution) failures, which eroded investor confidence. This led to massive client withdrawals of over USD 100 billion, a sharp fall in its share price, and a severe liquidity crisis.
The bank relied on emergency funding from the Swiss National Bank, which provided up to CHF 50 billion in liquidity support. However, confidence continued to deteriorate, especially after the collapse of Silicon Valley Bank heightened fears of global banking contagion.
To avoid systemic risk, Swiss regulators approved a state-backed UBS takeover, supported by central bank liquidity and government guarantees of CHF 9 billion
An alternative could have been
temporary nationalisation, where the Swiss government would take ownership, stabilise the bank, restructure it and then return the ownership to private investors."