WASHINGTON: The U.S. Federal Reserve and the Treasury Department said on Sunday they welcomed the announcements by Swiss authorities to support financial stability after UBS sealed a deal to buy rival Swiss bank Credit Suisse.

UBS to acquire Credit Suisse for $3.23 billion

Swiss regulators were forced to step in and orchestrate a deal to prevent a crisis of confidence in Credit Suisse spilling over into the broader financial system. The Treasury Department and the Federal Reserve said they have been in close contact with their international counterparts to support implementation of the deal.