In January 2022, Credit Suisse faced a new scandal when its newly appointed Chairman, Antonio Horta-Osorio, was forced to resign from the bank's board after only nine months in the position. His resignation came after revelations involving his breach of Covid-19 quarantine protocols in both Switzerland and the UK. The incident caused a fair amount of controversy. The departure of the newly appointed Chairman highlighted some of the many challenges Credit Suisse was facing. Credit Suisse's efforts to turn a new page under CEO Ulrich Koerner was bought to a dead-end when rumors speeded that the bank was on the verge of potential collapse. Despite the lack of evidence to support the claim, the rumors led the clients, to withdraw around 110 billion CHF (approximately $119 billion) of funds in Q4 of 2022. This event was the starting point of Credit Suisse’s perilous downfall.

The recent collapse of Silicon Valley Bank and Signature Bank, coupled with light risk management practices, prompted a a small run on the bank. This, in turn, resulted in a drop in the bank's market value. In response to those events, the Swiss National Bank (SNB) stepped in to offer critical support to Credit Suisse. Credit Suisse announced it will borrow up to 50 billion Swiss francs, or about $54 billion, from the Swiss National Bank if certain prudential conditions were satisfied. The Chairman of the Saudi National Bank, Credit Suisse's largest shareholder, stated that his bank would not be investing further money in Credit Suisse. However, he did clarify that this was due to regulatory constraints, and his bank would not exceed the 9.9 per cent stake it already holds in the company to comply with the Swiss financial regulatory framework.

In a drastic move to stop the financial panic that had swept the world, UBS, Switzerland's largest bank, agreed to purchase Credit Suisse for about $3.2 billion on March 19, brokered by the Swiss government. This deal marked the fall of a 166-year-old institution that was once a symbol of Swiss pride and could be considered the most significant shake-up of the global banking sector since the 2008 financial crisis. Swiss officials and regulators stated that the deal was necessary to reassure investors about the country's banking industry and the possibility of containing banking systemic risk and financial instability. The Swiss National Bank to exceptional measures to lend up to 100 billion Swiss francs, and the Swiss financial regulator, Finma helped UBS quickly merge with its primary competitor.

UBS' acquisition of Credit Suisse has sent an important signal through the global financial system, leaving the future uncertain for the bank's employees spread around the world. The deal is set to increase UBS' assets under management to about $5 trillion.

Everybody is keeping in mind the spectacular failure of FTX, one of the largest crypto exchanges in the world. This event marked the third major financial institution to fail in three weeks following the implosions of Silicon Valley Bank and Signature Bank, the second and third largest lenders to collapse in US history. Despite almost receiving a clean bill of health under Finma's "Too Big To Fail" regulatory regime, Credit Suisse faced a new wave of fund withdrawals for the second time in months.

The merger with Credit Suisse is expected to make UBS even larger and more stable than it already is, and this may result in the run-off of parts of Credit Suisse's operations. The road ahead for both UBS and Credit Suisse remains unclear to this date, and it will be interesting to see how the deal will impact the global financial system.

The collapse of two central US banks, Silicon Valley Bank and Signature Bank, has had a ripple effect that is now hitting the rest of the world, especially Europe, with Credit Suisse's failure. The consequences of a failure of this proportion could have been systemic, but the Swiss Central Bank has acted swiftly to enable UBS's takeover of Credit Suisse, preventing a banking panic from spreading all over Europe.