According to a media report, the major Swiss bank UBS is in talks with its crisis-ridden competitor Credit Suisse about a takeover. UBS could acquire all or part of Credit Suisse, the Financial Times (FT) reported yesterday, citing people familiar with the matter. The boards of directors of the two banks wanted to meet separately at the weekend.
The Swiss National Bank (SNB) and the financial market regulator FINMA organized the talks to build confidence in the country’s banking sector. UBS and Credit Suisse declined to comment on the report. Credit Suisse shares rose 9 percent in after-hours trading. In regular trading in Switzerland, they fell by around eight percent yesterday.
Credit Suisse has been struggling with a loss of confidence from investors for days. Originally, the triggers were home-made problems. But the crisis surrounding the American Silicon Valley Bank further fueled the uncertainty. On Wednesday evening, the SNB and FINMA backed Credit Suisse. A few hours later, the institute began tapping into an emergency loan worth CHF 50 billion.