According to the newspaper, the Swiss authorities want a merger to restore confidence in the Alpine country’s banking sector. UBS is Switzerland’s largest bank.
There would be further consultations this weekend led by the Swiss central bank and the financial regulator FINMA. It is according to the Financial Times not sure that Credit Suisse and UBS, which is led by former ING CEO Ralph Hamers, will make a deal.
Credit Suisse has been under pressure for some time as customers continue to withdraw money from their bank accounts. They do this because they have lost confidence in the bank. Switzerland’s second-largest bank has been in the news a lot in recent months due to scandals, such as a money laundering investigation and bad investments.
There was great unrest on the stock markets around Credit Suisse after the collapse of several regional banks in the United States. The Swiss central bank has already pledged billions in support to Credit Suisse.
The unrest flared up again on Friday. Shares of the 167-year-old bank fell sharply on the Zurich stock exchange. Press agency Reuters reported that at least four major banks, including France’s Société Générale and Deutsche Bank, have restricted their trading transactions with Credit Suisse.