UBS is a Swiss multinational investment bank and financial services company headquartered in Zurich, Switzerland. With a history dating back to 1862, UBS is one of the largest and most prominent banks in the world, operating in over 50 countries and offering a wide range of financial services, including investment banking, wealth management, asset management, and retail banking. Despite facing challenges such as the 2008 financial crisis and a scandal involving the manipulation of the LIBOR interest rate, UBS has been working to rebuild its reputation through improved risk management and compliance practices.
Swiss bank UBS has offered to purchase Credit Suisse, which has been at the center of the banking crisis, for $1 billion. In order to expedite the acquisition, a legal change is planned that would bypass shareholder voting by Swiss authorities.According to four sources close to the matter, the deal between Switzerland’s two largest banks could be signed before the markets open on Monday.Sources indicated that an offer of 0.25 Swiss francs per share was made, which is considerably below Credit Suisse’s Friday closing price of 1.86 francs.
It is uncertain whether the fast-paced negotiations will result in a deal
Along with the banking sector crisis in the United States last week, Credit Suisse also became the focus in Europe. The bank’s largest shareholder, the Saudi National Bank, announced that it would not increase its capital, and the bank’s stock prices experienced a sharp drop. The bank experienced daily withdrawals of more than 10 billion francs last week.
Credit Suisse announced that it would borrow up to 50 billion francs (54 billion dollars) from the Swiss National Bank (SNB) “to strengthen its liquidity.” Sources noted that if the acquisition goes through, there will be job losses in Credit Suisse’s investment banking unit. It is said that the Swiss government will take emergency measures to expedite the acquisition and bypass the six-week deadline given for shareholder consultations.
Another claim is that Credit Suisse will be nationalized by the Swiss National Bank
New developments continue to emerge about troubled Credit Suisse. It was recently alleged that the banking giant would be purchased by UBS. According to recent information, the Swiss government is holding talks to nationalize all or part of Credit Suisse.
Nationalization Plans for Credit Suisse
Credit Suisse, which has been going through difficult times for a long time, recently requested assistance from the Swiss National Bank. According to news reports, UBS, one of Switzerland’s largest banks, has started talks to acquire Credit Suisse. However, according to the latest information, Credit Suisse found UBS’s offer too low and turned to other alternatives.
Sources familiar with the matter reported that Swiss authorities are planning to nationalize all or part of Credit Suisse Group AG. Sources who requested anonymity said that if the deal to acquire Credit Suisse by UBS proves to be too complex and unsuccessful in a short period of time, the government is considering nationalization. Officials recently noted that the situation with Credit Suisse would become clear in a short period of time.