Switzerland to rescue its two biggest banks

BERNE, Switzerland, Oct. 16 (UPI) -- The Swiss National Bank said it would set up a fund to relieve its largest bank of $60 billion in toxic assets, in spite of an improved financial environment.

Jean-Pierre Roth, the president of the central bank, said it was "preferable that we go ahead with this operation now … despite the fact that the markets have regained a certain degree of optimism in the past few days," The New York Times reported Thursday.

UBS said it would fund the deal with $6 billion of equity capital and $54 billion from the central bank, the Times reported.

UBS has reported writedowns of $44 billion related to the current financial crisis, the worst in Europe, the Times said.

The country's second largest bank, Credit Suisse, said it had raised $8.8 billion from "major global investors," which included the Qatar Investment Authority, the Times reported.

Credit Suisse reported a third quarter net loss of $1.3 billion, while UBS reported a third quarter net income of $261 million, the Times said.