Bloomberg: Swiss authorities are considering a merger between UBS and Credit Suisse

The Swiss authorities are exploring all possible options for saving Credit Suisse, including the forced merger of the bank with UBS. This is reported with reference to its own sources. Bloomberg. At the same time, according to the agency, both banks strongly oppose the merger.

Both UBS and Credit Suisse see the takeover as a last resort, sources said, given the complexities involved in completing such a deal and overlapping spheres of influence. In addition, sources say UBS is very reluctant to take on the risks associated with Credit Suisse.

According to Bloomberg, now the country’s authorities are considering many options for the future of Credit Suisse. In addition to the sale of the entire bank to UBS, there is the option of splitting it up for the purpose of further selling it in parts to different investors.

Credit Suisse has been experiencing serious problems for several years due to a series of high-profile scandals. And the bank ended 2022 with a loss of $7.9 billion, which was the bank’s worst result since 2008. The situation for the Swiss bank was exacerbated by the sudden bankruptcy of Silicon Valley Bank and the closure of Signature Bank, which caused massive investor anxiety. March 13 Credit Suisse informedthat it found “material deficiencies” in its financial statements.

After that, many experts started talking about the fact that Credit Suisse could have very serious problems: for example, the famous American investor Robert Kiyosaki saidthat awaits its bankruptcy. And the largest shareholder of Credit Suisse, the Saudi Saudi National Bank, refused new investments in the Swiss bank due to regulatory requirements. All this resulted in a collapse of Credit Suisse stock prices on March 15 by 30%, due to which the bank was forced to apply for help from the Swiss National Bank. Today it became known that the Central Bank of Switzerland approved the allocation of a loan of approximately 50 billion Swiss francs ($53.7 billion) by Credit Suisse.

Neither banks nor the Swiss government comment on Bloomberg information.

Kirill Sarkhanyants