may complete the acquisition of the group
The group as of Saturday evening, according to the Financial Times, as regulators rush to sign off on a merger of Switzerland’s two biggest banks against a backdrop of industry turmoil.
swiss national bank
And regulator FINMA now sees the purchase of UBS (ticker: UBS) as the only option to address the growing crisis at Credit Suisse (CS), Ft. informed of on Saturday, citing unnamed sources close to the talks.
Credit Suisse declined to comment on the report, while UBS did not respond. Baron’s Request for comment.
(blk) was before Cited as another potential lover, although it has since been publicly denied that it is involved in an acquisition.
The urgency for a deal comes as investors continue to pull money from Credit Suisse, which saw outflows of nearly $11 billion in a single day late last week. Morningstar Direct said on Friday the bank saw net outflows of more than $450 million from its US and European managed funds from March 13 to 15, as retail and institutional counterparties pulled money out of funds managed by the troubled Swiss lender.
Credit Suisse’s potential end as a stand-alone entity 167 years after its founding isn’t entirely surprising: The bank has dealt with a string of problems in recent years, from its financial controls to government investigations, Court setbacks, and several quarters of eye-watering losses, along with other issues, have investors wondering whether it will survive.
Yet the timetable for a resolution has been supercharged in recent weeks in the wake of high-profile bank failures in the US, particularly at Silicon Valley Bank, which also owns assets. market for a buyer.
The closure of SVBs sparked worldwide fears about the health of the industry, with many customers trying to withdraw their funds and putting particular pressure on shares of vulnerable banks amid large market volatility. Shares of Credit Suisse have fallen more than 17% over the past five trading days, and have lost more than a third of their value so far in 2023.
UBS was also hit by the selloff in financial stocks, which fell more than 7% in the past week, though it is down just 4% this year.
According to the FT’s sources, talks are now focused on the concessions that UBS is seeking if the deal goes through. The bank wants to be able to phase in any global capital regulations over time and seek protection from ongoing legal costs, which Credit Suisse has already warned could cost around $2 billion.
Write to Teresa Rivas at [email protected]