The Fed approves UBS to buy Credit Suisse in the United States

The plan will include tougher requirements, including liquidity standards for the bank, the Federal Reserve Board said in a statement.

On March 20, UBS bought Credit Suisse shares for $3.25 billion, making UBS one of the largest banks in the world.

Banks in good health

Meanwhile, four of the largest banks in the United States presented this Friday healthy results for the first quarter of the year, particularly due to the increase in interest rates, without being too affected by the recent financial turmoil.

Likewise, they are prudent: JPMorgan Chase made an additional provision of 1,100 million dollars to prevent possible non-payments by its clients, due to the deterioration of the “economic prospects”.

Some banks warn that they could lend a little less to individuals and companies in this context.

But the US economy “remains in good shape as a whole,” estimated influential Jamie Dimon, chairman of JPMorgan.

“Consumers continue to spend and have strong balance sheets, and businesses are in good health,” he said.

The banks presented their results on Friday, opening the season. Among the main ones are JPMorgan, Citigroup, Wells Fargo and PNC, which benefited from the sharp rise in interest rates that the Federal Reserve (Fed, central bank) has been promoting for a year to fight inflation.

This situation causes, almost mechanically, an increase in their net interest income, that is, the difference between the interest they earn by lending money and the interest they pay to savers who deposit their money.

With information from AFP and Reuters.