Switzerland-based multinational banking conglomerate UBS, is in talks to take over the entire or part of the troubled bank Credit Suisse. Shares of the troubled Suisse continued to plunge in the market despite receiving a $54 billion bailout from the Swiss National Bank.
The collapse of Silicon Valley Bank in the earlier week followed by the collapse of Signature bank triggered a sell-off in the banking sector. The crisis for Credit Suisse was aggravated after its largest shareholder, Saudi National Bank, stated in an interview with Bloomberg that they couldn’t increase their holding due to regulatory mandates. The bank has also been under stress from increased customer withdrawals.
The Swiss government is reported to hold an emergency meeting on Saturday night, but no official statements have been made. UBS is reported to have asked the Swiss government to cover $6 billion in costs if it were to buy the falling Credit Suisse bank.
While Credit Suisse and UBS are rivals, both being Swiss banks dealing in investment and wealth management, their fortunes are poles apart with Credit Suisse losing $7.9 billion in 2022 while UBS earned a profit of $7.6 billion for the same year.
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