Swiss banking giant UBS to buy troubled rival Credit Suisse to avoid a larger global financial crisis

Banking giant UBS is buying its smaller rival Credit Suisse for $3.2 billion in an effort to avoid further market-shaking turmoil in global banking, Swiss President Alain Berset announced on Sunday night.

Berset called the announcement "one of great breadth for the stability of international finance. An uncontrolled collapse of Credit Suisse would lead to incalculable consequences for the country and the international financial system."

The Swiss Federal Council, a seven-member governing body that includes Berset, said in a press release Sunday that it was providing a guarantee of liquidity from the Swiss National Bank to Credit Suisse.

"The Federal Council is taking this measure in order to protect financial stability and the Swiss economy," it the council// said.

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