UBS poised to acquire troubled Credit Suisse bank: report

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Investment banking company is reportedly inching closer to a deal to take over rival Credit Suisse in an effort to prevent a complete collapse the troubled financial institution.

wall street journal reported on saturday That a deal for to acquire Credit Suisse could come on Sunday or earlier and that regulators have offered to waive the need for a customary shareholder vote, but a key point is that the owner Credit Suisse’s retail arm who will be.

Credit Suisse, which has been in business for 167 years, was announced earlier in the week accept a lifeline The company said it took a “decisive action” in a move to secure more than $50 billion from the Swiss National Bank amid the global banking crisis following the collapse Silicon Valley Bank and concerns about Credit Suisse’s future outlook.

“Credit Suisse intends to exercise its option to borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a covered loan facility with the Swiss National Bank (SNB) as well as a short-term liquidity facility is taking decisive action to strengthen the pre-emptively. which are fully collateralized by high quality assets,” Credit Suisse said in a statement.

Credit Suisse faces lawsuits from US shareholders for allegedly hiding financial woes

Building in Troy, Michigan.

Reuters reported on Saturday that is asking swiss government To cover the cost about $6 billion if it goes ahead with the purchase.

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The frenzied weekend talk came to shore after a brutal week for banking stocks and endeavors in Europe and the United States, which were left shaken by it. recent eruption Silicon Valley Bank, which represents the second largest bank collapse in US history.

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Swiss regulators are racing to offer a solution for Credit Suisse before markets reopen on Monday, but the complexities combining the two giants raise the prospect that talks will last well into Sunday, the person said. who asked to remain anonymous due to sensitivity. Situation.

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swiss bank credit suisse logo

The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland

UBS, which boasts more than $1.1 trillion in assets, was under pressure from Swiss authorities to acquire its local rival in a bid to bring the crisis under control, two people with knowledge of the matter said. The plan could lead to the closure of Credit Suisse’s Swiss business.

Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.

Prior to the collapse of Silicon Valley Bank there was no official chief risk officer but a DEI executive was employed.

People outside Silicon Valley Bank

People queue outside the headquarters of Silicon Valley Bank to withdraw their money on March 13, 2023 in Santa Clara, California.

american officials Those involved in the position are working with their Swiss counterparts to help broker a deal, Bloomberg News also cited people familiar with the matter.

Shares of Credit Suisse have lost a quarter of their value in the past week as it struggles to recover from scandals that have eroded investor and customer confidence.

The company is one of the world’s largest wealth managers and is considered one of 30 global, systemically important banks whose failure would spread across the country. financial system,

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Credit Suisse and did not immediately respond to a request for comment from Fox Business.

Reuters contributed to this report