UBS is studying a takeover of Credit Suisse which could see the Swiss government offer a guarantee against the risks involved, two people with knowledge of the matter said on Saturday.
These people said that Swiss authorities were putting pressure on UBS to carry out a takeover. Under the plan, Credit Suisse’s Swiss operations could be spun off, they added.
UBS and Swiss financial regulator FINMA declined to comment when contacted by Archyde.com.
Regulators have urged Credit Suisse Group to press ahead with a deal with Swiss rival UBS as the struggling bank enters a breakthrough weekend after some rivals grew cautious in their dealings with it.
Dixit Joshi, chief financial officer of Credit Suisse, and his teams will hold meetings over the weekend to assess the bank’s options, people with knowledge of the matter said on Friday.
The 167-year-old bank is the biggest name caught in the market turmoil sparked by the liquidation of US creditors Silicon Valley Bank and Signature Bank over the past week, which forced the Swiss bank to draw 54 billion dollars in central bank funds.
Dating back to the mid-19th century, UBS is the largest Swiss bank, with a market value of 60 billion Swiss francs ($65 billion), and the largest wealth manager in the world.
UBS itself has seen tumultuous times, with a crackdown on bank secrecy and a bailout during the global financial crisis more than a decade ago.
It has gone through several restructurings, cutting thousands of jobs, and downsized its investment bank to reduce risk and improve returns.