After Credit Suisse Group AG announced it would borrow 50 billion Swiss francs from the Swiss National Bank, UBS Group AG is reportedly considering acquiring the banking giant. However, UBS is requesting that the government issue a backstop to protect against any losses if it purchases Credit Suisse. According to unnamed sources familiar with the matter, UBS, which is the world’s largest private bank, wants the government to safeguard the deal.
Credit Suisse’s Troubles Deepen as UBS Considers Takeover Amidst Banking Industry Challenges
There are many deals happening behind the scenes in the modern banking world. On Friday, it was reported that UBS Group AG is in discussions to acquire all or parts of the banking giant Credit Suisse Group AG. Sources familiar with the talks say that the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss National Bank are involved in the discussions between UBS and Credit Suisse. Regulators from Switzerland note that the merger, called “Plan A,” is an attempt to bolster investor and depositor confidence in Credit Suisse. On Thursday, Credit Suisse announced it was borrowing 50 billion Swiss francs ($54 billion) from the Swiss National Bank to bolster liquidity.
On Saturday,…
