The Swiss authorities are considering a full or partial nationalization of Credit Suisse Group AG as another possible option besides a UBS Group AG’s takeover, according to people with knowledge of the matter.
The country is considering taking over the bank entirely or keeping a significant equity stake if a takeover by UBS Group AG falls apart because of the complexities of arranging the deal and the short time frame involved, the people said. , who requested anonymity. because the matter is private.
The situation is highly fluid and could change as authorities seek to finalize a solution for the bank by the time Asian markets open, which will be overnight in Europe, the people said.
The Swiss finance ministry declined to comment.
There are many complexities to the UBS takeover, including thorny issues such as a government backstop that could cover possible legal and other losses. A larger rival also declined to take over Credit Suisse’s investment bank, Bloomberg reported on Saturday.
UBS has asked the government to pick up some of the legal costs and potential future losses of any takeover, the people said, with a report putting the figure at about $6 billion. It put in an offer of nearly $1 billion for Credit Suisse, which the small Swiss bank believed was too low.