- UBS is in talks to acquire all or part of Credit Suisse, the Financial Times reports.
- The talks come after a harrowing week for Credit Suisse, which saw its stock fall to an all-time low.
- The potential tie-up of Switzerland’s 2 largest banks comes just a week after SVB’s collapse sent shockwaves through the banking industry.
Switzerland’s two largest banking giants are reportedly in talks to combine.
According to a report in the Financial Times, which cites multiple people briefed on the talks, UBS is weighing whether to acquire all or part of Credit Suisse.
Swiss National Bank, along with Swiss regulators, are arranging the talks in an effort to bolster confidence in the country’s banks, the FT reported.
UBS declined to provide a comment, while Credit Suisse could not be immediately reached for comment.
Discussion of a UBS-Credit Suisse tie-up comes just one week after the collapse of Silicon Valley Bank sent shockwaves throughout the banking sector as investors and deposit-holders feared other banks could be next.
Credit Suisse was hit particularly hard by investors’ concerns since it’s faced a slew of other challenges recently, including an announcement last week that it would delay its 2022 annual report after an inquiry from the SEC.
To make matters worse, this week, the Zurich-based bank’s largest shareholder, Saudi National Bank, warned it would be unable to invest more cash into the bank without facing regulatory hurdles.
On Thursday, after shares of Credit Suisse hit an all-time low, the troubled bank said it had secured a $50 billion lifeline from the Suisse National Bank.
The FT reported that Swiss regulators have told counterparts in the US and UK that a merger between UBS and Credit Suisse is their “plan A” to restore confidence in Switzerland’s banking system.