DodoFinance Breaking News Made For You!
The Swiss government is considering nationalizing the ailing bank Credit Suisse in whole or in part. According to the Swiss, nationalization is the only alternative to a takeover by Switzerland’s largest bank, UBS.
The Swiss government is considering, the news agency said Bloomberg If the deal with UBS fails, it could take over part or all of the bank. Switzerland’s biggest bank is interested in Credit Suisse, but it’s unclear whether such a big deal will come in such a short period of time.
According to insiders, the government hopes to make a decision before stock markets open in Asia. It’s tonight in Europe.
Earlier today it was announced that UBS had left a billion dollars (930 million euros) for Switzerland’s second-largest bank. Credit Suisse thought the offer was on the low side.
The acquisition was necessary because Credit Suisse was not performing well. Due to the series of scandals and misinvestments, customers have started putting their money elsewhere. Unrest was heightened last week when several regional banks collapsed in the US.
Swiss authorities are now trying to restore that confidence in the banking sector. This is necessary because Credit Suisse is a legitimate bank. This means that the bank is large and essential to the financial system. If a bank fails, it will have consequences not only for customers but also for companies and other banks.
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