According to UBS, the government guarantees should cover the costs of liquidating parts of Credit Suisse and any legal disputes.
According to the Financial Times (FT), the Swiss National Bank wants to find an uncomplicated solution to the current situation before the markets open on Monday. If the banks merge, it would be the largest banking merger in Europe since the 2008 financial crisis.
Credit Suisse announced this week that it will use the option to borrow up to 50 billion Swiss francs (1.2 trillion CZK) from the Swiss central bank to boost liquidity. According to a Reuters analysis, this only buys time, and the American investment bank JPMorgan, for example, considers a takeover by UBS to be the most likely scenario.
Economist: Credit Suisse bank will not fail
Credit Suisse has had long-standing problems, culminating this week in its announcement that it had found serious deficiencies in its financial reporting and control procedures over the past two years.
The financial markets have also been under tension in recent days due to the collapse of the American financial institutions Silicon Valley Bank (SVB) and Signature Bank. The development prompted US President Joe Biden to call on Congress on Friday to allow regulators to crack down on executives at failed banks. He also expressed his belief that the banking crisis has calmed down.
According to Reuters, however, concerns about broader problems in the banking sector remain. On Saturday, high-ranking representatives of the Biden administration also discussed the situation with well-known investor and billionaire Warren Buffett, the agency said.
Experts: Credit Suisse’s collapse must not happen. It would threaten the world economy