UBS poised to acquire troubled Credit Suisse bank: report

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firm UBS is reportedly close to acquiring rival Suisse in an effort to prevent a complete collapse of the troubled institution.

wall journal reported on saturday That a deal for UBS 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 of Credit Suisse's retail arm who will be.

Credit Suisse, which has been in 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 of 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 as well as a short-term liquidity facility from the Swiss National Bank (SNB) is taking decisive action to consolidate pre-emptively, which are fully collateralized by high-quality assets,” Credit Suisse said in a statement.

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UBS Building

UBS Building in Troy, Michigan.

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

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The frenzied weekend talk comes after a brutal week for banking stocks and efforts in and the United States to shore up the sector, which was rocked 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 of combining the two giants raise the prospect that talks will last well into Sunday, the person said. who asked to remain anonymous because of the sensitivity of the credit card. 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 situation are working with their Swiss counterparts to help broker a deal, Bloomberg 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 entire bank. financial system,

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

Reuters contributed to this report