UBS May Acquire Credit Suisse: Report

Facade of Swiss bank with Swiss flag, Bank Building of Credit Suisse, Bahnhofstrasse, Zurich, Canton of Zurich, Switzerland
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UBS Group (UBS) is in talks to acquire all or parts of Credit Suisse(CS), Financial Times reported Friday, though neither company has confirmed merger talks are on.

On Thursday, sources told Bloomberg the Swiss government may be trying to arrange a merger between UBS and Credit Suisse in a move the paper said was being resisted by both sides. Reuters reported Friday that Credit Suisse AG's CFO has called a Saturday meeting to explore possible options—including a sale, break up or winding down of any combination of the firm's operations.

Despite a $54 billion loan from the Swiss central bank this week, investors continue losing faith in the company. Credit Suisse shares slid nearly 7% on the day by Friday's close. Other financial institutions are reportedly distancing themselves from the firm, with Reuters reporting four major banks have limited their dealings with Credit Suisse and its securities.

For its part, the U.S. Treasury Department is reportedly reviewing the financial sector's exposure to the bank, according to Bloomberg.

The bank has spent the last few days trying to recover after its shares hit all-time lows Wednesday. Despite the liquidity infusion and vote of confidence from the Swiss National Bank, reports have surfaced of the firm exploring different options.

Credit Suisse was troubled before the collapse of Silicon Valley Bank sent financial tremors through the banking system. In the past few years, the company has been accused of spying on rivals, made bad hedge fund bets, and suffered earnings losses.

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  1. Financial Times. "UBS in talks to acquire Credit Suisse."

  2. Bloomberg. "UBS, Credit Suisse Oppose Idea of Forced Tie-Up."

  3. Reuters. "Exclusive: Credit Suisse to hold internal talks this weekend on scenarios for bank -sources."

  4. Reuters. "Exclusive: Some Credit Suisse counterparties put curbs on new dealings involving lender -sources."

  5. Bloomberg. "US Treasury Reviewing US Banks’ Exposure to Credit Suisse."

  6. AP. "Near ‘cliff’s edge,’ Credit Suisse not seen as systemic risk."

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