The Financial Times reported today that UBS AG, Switzerland’s largest bank, is in talks to acquire all or part of Credit Suisse’s business, and the boards of both sides are expected to meet separately over the weekend to discuss the possibility of a deal.
Credit Suisse, Switzerland’s second-largest bank, is under extreme pressure this week following the recent failures of two regional banks in the United States, shocking the financial world, Agence France-Presse reported. As of today’s market close, Credit Suisse shares in the Swiss stock market have fallen 8%.
The Financial Times report also said Swiss regulators informed their U.S. and U.K. counterparts late this evening that their “Plan A” was to merge UBS and Credit Suisse to bolster market confidence in the Swiss banking system. .
The Financial Times noted that other options are also being discussed between the two banks.
The report also said that the SNB’s focus is to reach a simple solution before the stock market opens on the 20th; the report added, but this does not guarantee an agreement.
Credit Suisse and UBS declined to comment for this story. The Swiss National Bank and the Swiss Financial Market Supervisory Authority (FINMA) did not immediately respond to Reuters’ requests for comment.
As of the evening of the 15th, the Swiss National Bank has injected $53.7 billion in life-saving money to strengthen Credit Suisse.
JP Morgan also floated the idea of UBS taking over Credit Suisse this week, saying it was the “most likely” scenario. (Translator: Li Peishan / Verified manuscript: Yan Siqi) 1120318
further reading
Swiss-led merger with Credit Suisse and UBS refused to “send it as a pile”
U.S. shareholder sues Credit Suisse for cover
How to solve the crisis of Credit Suisse? 3 possible endings exposed
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