Swiss authorities are considering a full or partial nationalization of Credit Suisse Group AG as the only other viable option outside of the acquisition of UBS Group AG, according to people with knowledge of the matter.
The country is considering either taking over the bank entirely or taking a significant stake if the takeover by UBS Group AG falls apart due to the complexities in arranging the deal and the short time frame involved, the people said, who They asked not to be identified. since the matter is private.
The situation is very fluid and may still change as authorities seek to finalize a solution for the bank by the time Asian markets open, which is late in Europe, the people said.
There are multiple complexities to a UBS takeover, including thorny issues such as a government backing that would cover potential legal and other losses. The biggest rival has also refused to take on Credit Suisse’s investment bank, Bloomberg reported on Saturday.
UBS is asking the government to bear certain legal costs and possible future losses on any acquisitions, the people said, with a report putting the figure at around $6 billion. It has submitted an offer of around $1 billion for Credit Suisse, which the smallest Swiss bank believes is too low.
