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Switzerland pumps billions into bank rescue initiative

Switzerland pumps billions into bank rescue initiative

The Swiss government says it will help banking giant UBS raise billions of dollars in new capital.
The government says the measure is part of a wider package to support the country's banking system.
It includes lending UBS up to 54 billion Swiss francs (US$47.23 billion) so that it can part with bad securities.
UBS has suffered losses and writedowns totaling about 45 billion francs (US$40 billion) over the past year.
The government will also sign mandatory convertible bonds worth 6 billion (US$5.25 billion) with UBS and raise account holder protection with all banks. UBS rival Credit Suisse says it will raise about 10 billion francs on the open market.