On Sunday, March 19th, more than 167 years of banking mogul Credit Suisse ended with the acquisition of one of the country's largest banks, UBS. Under pressure from the Swiss government, UBS bought the ailing competitor for 3 billion Swiss francs ($3.25 billion)-just a few days ago, on Friday, March 17th. Half of Credit Suisse's total market capitalization of $8 billion.

A day later, on March 20, Credit Suisse shares tumbled more than 60% in foreign trading, while UBS shares fell 9%.

In order to resolve all the damage that will be suffered by the Swiss bank during the transfer, the Swiss government can provide 10 billion dollars. The Swiss central bank will also lend 108 billion US dollars to such banks to fail.

According to the Swiss journal New Z ü rcher Zeitung, the acquisition has resulted in major economic development earthquake disasters in Switzerland since the rescue of Swiss banks in 2008 and the suspension of Swiss Airlines in 2001. The bailout will prevent trouble from pouring into other banks, as it did 15 years ago after the collapse of Lehman Brothers abroad. Muibershengfu, the current chairman of the Swiss federal government, feels that taking over Credit Suisse is "necessary" not only for Switzerland, but also for the stability of the global financial system as a whole.

Use a combination worth billions of dollars on a Sunday

The transfer has caused a different reaction in Swiss politics. The Swiss Liberal Democratic Party (FDP) expressed appreciation for the matter, saying that the acquisition was necessary to prevent Switzerland as the financial and economic core from being seriously affected.

The blame comes from Cedric Hillmus, the current chairman of the Swiss Social Democratic Party, who tweeted that nothing had changed since the financial turmoil in 2008. "the whole financial system is psychologically distorted and absurd," he said, adding that the government must intervene again and rescue it.

Marcel Fratzscher, director of the German Economic Research Institute, believes that the acquisition could lead to an oversized bank that would cause all-round instability if it appeared to fail.

In an interview with Die Tageszeitung, the French economist made it clear that the current situation is far less worrying than it was before the 2008 international financial crisis. "Today, it happens to be a sharp rise in interest rates by central banks, which has caught many financial companies off guard and caused a lot of damage."

In other words, today's problem is not the systematic interdependence among financial companies, not the lack of liquidity and assets, but the emergence of extraordinarily radical fiscal policies.

"Management and control work pressure is likely to increase."

Olga Feldmeier, founder of Swiss wealth management platform Smart Valor, told Cointelegraph: "UBS's acquisition of Credit Suisse surprised a lot of people." Until 2014, she served as chairman and sales manager of UBS's wealth management supervisory board.

"for a long time now, everyone knows that the phenomenon of banks is not very good. But who would have thought that the bank, which used to be worth $80 billion, would be acquired by its core competitor, UBS, for $3 billion? According to Feldmeier, it is not just the more than 50, 000 employees who are surprised. Lenders have been hit harder, especially those with a special type of senior debt, the so-called additional tier one capital.

But when it comes to what the alternative is, Mr Feldmeier allows that if the acquisition is not carried out, the adverse effects will undoubtedly be devastating. "after all, if the top 30 Swiss banks include a failure, where is the security? If there is a systematic bank crowding out, there will be nothing the ECB and Fed meetings can do.

Mauro Casellini, a member of the supervisory board of the Technical Research Institute of CCA unfaithful, who served as CEO of BTC Swiss Bank of Liechtenstein and head of BTC Swiss Bank in Europe until January 2023, has a similar view.

She told the Cointelegraph that the Swiss government and regulators were right to move quickly to find solutions that had the least adverse impact on the industry.

Although there have been signs for some time that Credit Suisse's phenomenon is not easy, it is hard to see from the outside how urgent the situation is. It is not the case to say whether this is the right solution, but the scale of the operation of a new 'very bank' is impressive and the pressure on management will increase, "Casellini said."

Better and worse.

The banking difficulties have brought some benefits to Crypto, as well as some disadvantages. Despite the negative trend in macroeconomic policy, login password sales were good when it was revealed that UBS would buy Credit Suisse. BTC (BTC) got a rebound in the login password with an increase of 15.5% ($28671 on March 22nd). Medical ether (ETH) increased by 3.9%. Shares in BTC miners have risen 120 per cent since the start of the year, driven by a rise in the bitcoin market.

According to Feldmeier, this would be a proactive situation for login password swapping, whether it's larger or smaller. Feldmeier said: "more buying and selling, higher market sales, some people who have missed for a long time, SF is not easy to harm our own field." "it also increases the predictability of the BTC cycle time keeping its promise-that the next big bull market in Bitcoin will decline in March 2024."

With the replacement of property by investors such as digital currency, the losses of customers and investors of traditional financial institutions may have a certain impact on landing password sales market.

However, the acquisition of Credit Suisse and its banking sector face many different risks and challenges around the world, which also have a negative side. Banks are still the main partners of login password companies. If the bank does not do well enough, he will not want to work with data encryption companies or raise costs, which will not make life in the field of data encryption any stronger.

Mr Casellini showed that the recent closure of Fiat's Auto Import and Export Bank, such as Silvergate and Signature, and the collapse of Credit Suisse Credit Suisse, had added "major risks" to landing in the password market. According to this authoritative expert, many issues such as control, safety and clarity must be dealt with in order to establish the trust of investors and ensure the sustainable viability of the sales market. In the long run, regulation will help us create a successful and more fragmented alternative to the traditional financial system in our own field.

Caserini also predicts that there will be many challenges in the future because of the change in the trend of annual interest rates and the additional regulations on banks.

"We are going to wait and see how governments, especially our banks, react, and that he will rescue the desperate bank and still let it fail."