'Crisis of confidence' -UBS to buy Credit Suisse

STORY: "This really is a crisis of confidence, so that's also why the solution is not the classical 'too-big-to-fail' solution, but we have decided that the solution between the takeover of Credit Suisse by UBS is more appropriate," Amstad said.

UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses, in a shotgun merger engineered by Swiss authorities that won applause from other central bankers keen to avoid further market-shaking turmoil.