The Swiss government wants emergency measures to enable UBS’s rival to quickly take over troubled Credit Suisse. This was reported by the British business newspaper “Financial Times” on the basis of insiders.
Under Swiss regulations, UBS normally has to give its shareholders six weeks to consider a takeover. With emergency measures, that consultation period has been skipped, although the exact details are still being worked out.
There was great turmoil in the stock markets around Credit Suisse after the collapse of several regional banks in the US. The Swiss National Bank has already pledged billions of dollars to support the bank.
The Swiss authorities and Swiss bankers are said to be keen on Saturday night to find a solution. None of the parties involved declined to comment. According to the Financial Times, Finma’s central bank and regulator, UBS, the largest bank in Switzerland, is the only option to take over Credit Suisse. In the event of a merger of the two banks, 10,000 jobs may be lost, according to an informed source told Reuters news agency.
UBS claims guarantees
UBS, led by former ING CEO Ralph Hamers, will have a particularly difficult time acquiring the investment bank from Credit Suisse, which has previously caused scandals and losses. According to informed sources, UBS is demanding guarantees from the Swiss government against certain risks. According to Reuters, an amount of $6 billion (more than 5.5 billion euros) is being discussed. This amount may change during negotiations.
Moreover, according to sources, Deutsche Bank and BlackRock are also interested in taking over Credit Suisse in whole or in part. However, the US asset manager denies being interested. Deutsche Bank did not respond.
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