The media learned about the urgent merger of UBS and Credit Suisse, which will be announced very soon
Both full and partial sale of some Credit Suisse divisions are being discussed
Two of the largest Swiss banks, UBS and Credit Suisse, are preparing to conclude a merger agreement. A successful deal could be announced as early as this weekend, according to Financial Times sources familiar with the situation. The historic merger deal has caused a stir in Switzerland, the newspaper writes.
According to the FT, the Swiss National Bank (SNB) and state regulator Finma have told international partners that they see a deal with UBS as the only way to stop the crisis of confidence in Credit Suisse.
Sources say that amid fears for Credit Suisse's financial position, deposit outflows from the bank exceeded $10.8 billion per day at the end of last week.
The boards of directors of UBS and Credit Suisse are meeting this weekend. Regulators in the US, UK, and Switzerland are reviewing the legal component of the deal, as well as several concessions sought by UBS, the FT reports.
The bank, in particular, asked the government for a document guaranteeing compensation for losses in covering future expenses.
Bloomberg has learned that both full and partial sales of some Credit Suisse units (such as asset management) are being discussed. The deal may be announced on Sunday evening.
According to sources, German Deutsche Bank and American BlackRock also showed interest in Credit Suisse's assets. However, the position of the SNB and Finma, which insist on a "Swiss" settlement, has limited the number of potential parties to the deal, the FT notes.
Background. As a reminder, the shares of Credit Suisse, which is at the center of the European banking crisis, fell by more than 30% after it became known that one of its major shareholders from Saudi Arabia would not support the bank with additional funds.
However, the next day, Credit Suisse shares rose by 24.22% after it was reported that the bank would take out a $54 billion loan from the Swiss Central Bank to maintain liquidity and investor confidence.
Read more about this in Mind's article "Why Credit Suisse has a chance to survive".
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