The Swiss government will inject capital into UBS and Credit Suisse, its two largest banks, as part of a larger effort to released credit from its freeze. The Swiss National Bank will assume up to $60 billion of risky securities from UBS, leaving it nearly free of toxic assets, a move meant to restore trust in UBS. This move followed the actions taken earlier in the week by the U.S. Treasury, when it announced that it will purchase equity shares from America's nine largest banks, in a move meant to show investors that the banks were stable. The Swiss government will end up with a 9 percent stake in UBS, which relies on its reputation as a money manager for the wealthy for its profits. UBS shares dropped in early trading but quickly recovered to head higher, traders said because investors are seeing the plan as a safe solution to UBS's woes. By midmorning in Zurich, UBS shares were up 5 percent.
