Switzerland moved to restore confidence in its banking system yesterday, agreeing to fund a vehicle that would take on most of the toxic debts held by UBS and injecting SFr6bn (£3bn) to help recapitalise its former national banking champion.

The intervention in UBS came as its cross-town rival, Credit Suisse, raised SFr10bn from strategic investors, including the Qatar Investment Authority.

The proceeds of the fundraising by UBS will be immediately ploughed back into the bail-out vehicle, which is backed by the central bank and designed to hold up to $60bn (£35bn) in mainly US mortgage assets.

Financial Times, Daily Telegraph