By The Financial District
UBS In Talks To Acquire Stake In Credit Suisse
Banking giant UBS is in discussions to take over all or parts of Credit Suisse, with the boards of Switzerland’s two biggest lenders set to meet separately over the weekend, the Financial Times reported.
Photo Insert: Swiss regulators informed their counterparts in the US and UK that the merger of the two banks was their “Plan A” to salvage the confidence in Credit Suisse.
The Swiss National Bank and regulator FINMA are organizing the talks in an attempt to build confidence in the country’s banking sector, the report said, citing people familiar with the matter, Yomiuri Shimbun also reported.
On Friday evening, Swiss regulators informed their counterparts in the US and UK that the merger of the two banks was their “Plan A” to salvage the confidence in Credit Suisse, the report added.
Several other options are also under discussion between the two banks as both sides try to evaluate regulatory constraints in different jurisdictions, the newspaper reported.
The Swiss central bank’s focus is on agreeing to a straightforward solution before markets open on Monday, the report said, adding there is no guarantee a deal will be reached.
Bloomberg reported on Thursday that UBS Group AG and Credit Suisse were opposed to a forced merger, with UBS preferring to focus on its own wealth-centric strategy and reluctant to take on risks related to its smaller rival, Reuters also reported on Mar. 18.
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