UBS has agreed to buy Swiss banking giant Credit Suisse after increasing its offer to more than $2 billion, the Financial Times reported on Sunday, as authorities bid to stave off turmoil when the markets reopen.
Officials have been racing to rescue the 167-year-old bank, among the world's largest wealth managers, after a brutal week that saw the second- and third-largest US bank failures in history. As one of 30 global banks seen as systemically important, any deal for Credit Suisse could ripple through global financial markets.
At least two major banks in Europe are examining scenarios of contagion possibly spreading in the region's banking sector and looking to the Federal Reserve and the European Central Bank to step in with stronger signals of support, two senior executives with knowledge of the discussions told Reuters.
A person with knowledge of the talks earlier told Reuters that UBS sought $6 billion from the Swiss government as part of a possible purchase of its rival. The guarantees would cover the cost of winding down parts of Credit Suisse and potential litigation charges. One source previously said the talks were encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combined. The Swiss Bank Employees Association on Sunday called for the immediate creation of a task force to deal with the risk to jobs.
Swiss broadcaster SRF and other media reported that the government would hold an "important" press conference later on Sunday. They did not give any more details.The bank was forced to tap $54 billion in central bank funding as it tries to recover from scandals that have undermined the confidence of investors and clients.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
UBS in talks to acquire embattled Credit Suisse – reportSWITZERLAND'S largest bank, UBS, is in talks to buy all or part of Credit Suisse, according to a report by the Financial Times.
Read more »
UBS seeks $6 billion in gov’t guarantees for Credit Suisse takeover – sourceA source cautions that talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine.
Read more »
UBS makes offer for Credit Suisse; bondholder losses consideredBloomberg News reports that Credit Suisse is resisting UBS' offer of up to $1 billion. Any deal for Credit Suisse could ripple through global financial markets.
Read more »
Credit Suisse faces crucial weekend with its future in balanceSwiss regulators are encouraging UBS and Credit Suisse to merge, one source with knowledge of the matter says, but adds that both banks do not want to do so.
Read more »
Swiss lawmakers tell Credit Suisse to clean up its act, seek to ring-fence crisisSwitzerland, while priding itself on its financial know-how, has few mechanisms for holding top bankers individually responsible for mismanagement.
Read more »
Rappler | CrowdfundingTo celebrate Rappler+ in its 50th month, we invite you to this Rappler+ donation challenge! Will you help us sustain independent journalism? Send your donations here: Learn more about the challenge here:
Read more »