FT: UBS is in talks to buy Credit Suisse

According to a Financial Times source, the Swiss National Bank wants lenders to agree on a solution before markets open on Monday.

Swiss the major bank UBS is negotiating to buy the Swiss Credit Suisse either in whole or in part, reports the financial magazine Financial Times (FT) on Friday.

According to the FT, UBS and Credit Suisse will meet at the weekend to discuss the matter. FT’s information is based on anonymous sources.

According to sources, the Swiss National Bank (SNB) and the financial regulator Finma are negotiating to strengthen confidence in the country’s banking sector. The central bank and Finma told their US and UK counterparts that their primary plan to stop Credit Suisse’s crisis of confidence would be to merge it with UBS, one source told the FT.

One source said the Swiss central bank wants lenders to agree on a solution before markets open on Monday. However, there is no guarantee of the contract, the source continued.

Credit Suisse and UBS declined to comment on the matter to the FT, as did the Swiss Federal Reserve Bank of the United States and Britain.

On Saturday FT reported citing unnamed sources that the US asset management company Blackrock is preparing a competing bid for Credit Suisse.

According to FT, Blackrock would have been in contact with Credit Suisse about the matter. Blackrock may make an offer for only part of the bank’s business, FT writes.

However, a representative of Blackrock states to the Reuters news agency that the company has no intention of buying Credit Suisse in whole or in part.

To problems on Friday, the shares of the drifting Swiss giant Credit Suisse fell sharply again.

The banking chaos that has lasted for more than a week has brought down three US banks and pushed Credit Suisse into acute trouble.

By Editor

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