UBS is considering buying troubled Credit Suisse

An amalgamation of UBS Group with Credit Suisse Group is “plan A” for Swiss regulators who seek to strengthen confidence in the country’s banking system, the Financial Times reported.

The boards of Switzerland’s two biggest banks plan to meet separately this week to weigh the idea, the FT said in its report, citing people briefed on the talks that it did not name. The Swiss National Bank and regulator Finma are orchestrating the discussions, the FT said.

UBS and Credit Suisse are opposed to a forced combination, Bloomberg reported early Friday, citing people with knowledge of the matter. UBS prefers to focus on its own wealth-focused strategy and is reluctant to take risks associated with Credit Suisse, the people said, asking not to be identified because the deliberations are private.

Credit Suisse is working on a turnaround after being buffeted by deposit withdrawals and a stock slide. The company, receiving a $54 billion credit line from the Swiss central bank, has always said it has enough liquidity, and is working to get clients.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *