UBS is in talks to buy all or part of Credit Suisse. The news comes from Financial Times which cites several sources close to the dossier according to which the marriage between the first and second Swiss banks would be the "plan A" of the Swiss authorities, committed to keeping Credit Suisse afloat after the 50 billion franc credit line announced by the Swiss central bank. The imperative is to act quickly, also in order to avoid new stock market storms on a title already reached the historic lows.
Ubs-Credit Suisse wedding: the "plan A"
According to the Financial Times, the boards of directors of the two banks will meet separately over the weekend to evaluate the transaction. To orchestrate the possible negotiations between UBS and Credit Suisse in an attempt to strengthen confidence in the financial system they will be the Swiss central bank and the FINMA, the market regulator. An urgent need given that, reports Reuters, at least four big European banks, including SocGen and Deutsche Bank and Bnp Paribas, would have restricted transactions involving Credit Suisse or its securities.
Swiss authorities have told their American and British counterparts that the Credit Suisse and UBS merger is their “Plan A to stop the collapse of trust in Credit Suisse”. The British newspaper, citing some sources, also claims that the goal is to find a simple and direct solution before the markets open on Monday. According to some rumors, the project could also involve other Swiss intermediaries, including savings banks (Raiffeisen in primis) and some of the major cantonal banks.
On Thursday, the agency Bloomberg had reported that the top management of UBS and Credit Suisse had objected to a forced marriage, with the former who would have preferred to focus on her own strategy focused on asset management without taking on the risks associated with her rival.
