‘Swiss Urgent Measures to Swift Takeover of Credit Suisse’ | economy
The Swiss government wants urgent measures to speed up the takeover of troubled Credit Suisse by rival UBS. A British business newspaper reported this Financial Times Based on intuition.
Under Swiss regulations, UBS usually gives its shareholders six weeks to consider a takeover. Due to emergency measures, that consultation period was skipped, although the exact details are still being worked out.
After the collapse of several regional banks in the U.S., there has been a lot of turmoil in the stock markets around Credit Suisse. The Swiss central bank has already pledged billions in support of the bank.
On Saturday evening, Swiss authorities and two Swiss banks were said to be interested in a settlement. None of the parties involved declined to comment. As stated therein Financial Times UBS, Switzerland’s biggest bank, is seen by the central bank and Finma as the only option to take over Credit Suisse. An insider told Reuters news agency that the two banks would lose 10,000 jobs if they merged.
UBS, led by former ING CEO Ralph Hamers, will particularly struggle to acquire investment banking from Credit Suisse, which has previously been plagued by scandals and losses. According to insiders, UBS is seeking guarantees from the Swiss government against certain risks. According to Reuters, 6 billion dollars (over 5.5 billion euros) is being discussed. This amount may change during negotiation.
Also, according to sources, Deutsche Bank and BlackRock are interested in taking over Credit Suisse in whole or in part. However, the US asset manager denies showing interest. Deutsche Bank did not respond.
read more: Fears of new banking crisis after problems at Credit Suisse: ‘Everyone is worried’
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