According to one of the sources, the aim is to agree on a solution before the markets open on Monday.
Switzerland’s largest bank UBS is in talks to acquire the country’s second-largest bank, Credit Suisse, which is struggling, reports Financial Times citing people familiar with the matter.
The sources detailed that the negotiations were organized by the Swiss National Bank and the regulator Finma in an attempt to shore up confidence in the banking sector from the country. For now, a decision has not yet been made on whether the acquisition would be full or partial, they added.
The newspaper points out that the issuance of the loan by the Swiss National Bank to Credit Suisse has failed to stop the fall in the price of the shares of the financial institution.
Thus, the boards of directors of the two largest banks in Switzerland will meet over the weekend to address the matter. According to one of the informants, the objective is to agree on a solution before the markets open on Mondaybut there are no guarantees that an agreement will be reached.
Meanwhile, both parties are trying to assess regulatory constraints in different jurisdictions, and UBS is also looking at potential risks the acquisition could have for its own business.
Credit Suisse suffered significant losses this week as a result of the banking crisis affecting the US and after its main shareholder, the Saudi National Bank, announced that it would not inject more money into the entity. In this context, the Swiss central bank was forced to lend Credit Suisse 50 billion francs (about $53.6 billion).
