Swiss banks raise emergency funds

Switzerland's top two banks took emergency measures to shore up their finances on Thursday, with the state taking a near 10 percent stake in UBS while Credit Suisse raised new funds from private investors. UBS AG is getting 6 billion Swiss francs ($5.3 billion) from the government in return for a 9.3 percent stake, while Credit Suisse Group AG (CS) said it would raise 10 billion francs from investors including Qatar.
UBS, the biggest Swiss bank, will also unload $60 billion of toxic assets into a new fund controlled by the central bank. The Swiss government said it did not want to hold the UBS stake for years and would sell it to private investors as soon as possible.
In return for the capital, it will make demands on corporate governance and risk controls. The government said it also planned to boost depositor protection - from a current 30,000 franc guarantee - using steps taken elsewhere in Europe as a benchmark.