RT.com
20 Mar 2023, 04:14 GMT+10
UBS reportedly wants the Swiss state to partly cover the acquisition of the failing lender
Multinational investment bank UBS wants the Swiss government to cover about $6 billion of the costs if it agrees to buy Credit Suisse, a rival lender whose shares plummeted this week amid customer outflows and a loss of investors, Reuters reported on Saturday, citing sources.
Earlier media reports indicated that the banks were discussing a merger, an idea pitched by the Swiss National Bank and Financial Market Supervisory Authority (FINMA), to save Credit Suisse from insolvency.
The government funds are expected to help cover the cost of winding down parts of Credit Suisse following the merger, as well as potential litigation charges, sources told Reuters. However, the negotiations on the deal are reportedly tense, as the merger may lead to some 10,000 jobs needing to be cut.
According to a report by The Wall Street Journal, the deal could be announced on Sunday. The news outlet also notes that, in order to speed up the merger process, regulators had offered to waive a requirement that a shareholder vote be held.
Analysts say that Swiss regulators need to present a solution to the crisis at Credit Suisse before markets open on Monday, to avoid a further drop in the lender's stock price.
The two banks, as well as the Swiss government, have so far declined to comment on the reports.
Credit Suisse shares lost roughly a quarter of their value during the past week, despite having secured a $54 billion loan from the Swiss central bank. The bank is Switzerland's second largest, behind USB, and is considered systemically important both in Switzerland and globally. Banking experts warn that the bank's failure would affect the entire global financial system.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Sydney Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sydney Sun.
More InformationNEW YORK, New York - The bulls had the upper hand again on Friday, pushing the major indices to new ...
LOS ANGELES, California: After adjusting its battery supply chain to qualify for federal credits and other tax breaks, Tesla's Model ...
NEW YORK CITY, New York: Before the start of its annual Worldwide Developers Conference this week, Apple shares hit a ...
FREMONT, California: Elon Musk's brain implant startup Neuralink, valued at some $2 billion during a private fundraising round two years ...
NEW YORK, New York - U.S. stocks moved higher Thursday as investors and traders took a break from their recent ...
LISBON, Portugal: Carsten Spohr, Chief Executive of Lufthansa, has said that as Portugal's government is still debating whether to sell ...
WASHINGTON D.C.: The Biden administration has announced that it is providing grants worth $570 million to eliminate many dangerous railroad ...
PARIS, France: According to a report by BFM TV, Britain's King Charles is considering a visit to France in September, ...
WASHINGTON D.C.: The Federal Aviation Administration has said that a drone sighting disrupted some flights at Pittsburgh International Airport this ...
PORTLAND, Oregon: A federal trial has begun in Portland, Oregon examining the constitutionality of a stringent gun control law approved ...
PHILADELPHIA, Pennsylvania: Philadelphia Mayor Jim Kenney and members of the city's historical commission have been sued by a group which ...
LANSING, Michigan: Michigan's Department of Natural Resources said by a wildfire in the state has burned through more than 3 ...