Elon Musk responds to $100B credit line in $2B UBS-Credit Suisse deal: 'Wow'

Elon Musk responds to $100B credit line in $2B UBS-Credit Suisse deal: ‘Wow’

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Elon Musk responds to $100B credit line in $2B UBS-Credit Suisse deal: ‘Wow’:- UBS expected to get $100 billion credit line as part of Credit Suisse buyout

Twitter CEO Elon Musk responded to reports that UBS would get a $100 billion credit line as part of the $2 billion deal to buy Credit Suisse with one word: Wow.

A deal between the two financial institutions was announced on Sunday after the Swiss government reportedly agreed on a deal that allowed Switzerland’s biggest bank, UBS, to buy rival Credit Suisse for $2 billion.

The deal comes as concerns continue over a possible collapse of Credit Suisse, which saw its share price plummet and deposit outflows last week despite receiving a $54 billion financial lifeline from the Swiss National Bank to shore up its liquidity. to continue.

“So UBS buys Credit Suisse, shareholders don’t vote, UBS gets $100 billion credit line from central bank…” posted Twitter user Wall Street Silver. “Crazy timing this week. Bandaids are flying everywhere trying to keep the system from breaking.”

The tweet was in response to a story about the buyout and how Swiss authorities handled the deal.

Musk, the billionaire who bought Twitter last year, is the founder of SpaceX and CEO of Tesla.

After reading about the line of credit being offered to UBS, Musk responded with just one word.

“The $100B line… wow,” he tweeted.

Talks about UBS’s potential takeover of Credit Suisse turned severe over the weekend. They included the Swiss government’s financial regulator giving its blessing after the two sides came to an agreement on the terms of the deal.

UBS has a balance sheet of about $1.1 trillion – almost twice as much as Credit Suisse – and has been more resilient than Credit Suisse in the years since the 2008 global financial crisis.

Credit Suisse’s distressed financial condition stemmed from billions of dollars in losses from bad investments, and fines imposed by regulators. Its assets are expected to decline from $1.2 trillion in the third quarter of 2008 to $576 billion in the fourth quarter of 2022.

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“Elon Musk responds to $100B credit line in $2B UBS-Credit Suisse deal: ‘Wow'”

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