A merger of UBS Group AG with Credit Suisse Group AG is “plan A” for Swiss regulators seeking to shore up confidence in the nation’s banking system, the Financial Times reported.
(Bloomberg) — A merger of UBS Group AG with Credit Suisse Group AG is “plan A” for Swiss regulators seeking to shore up confidence in the nation’s banking system, the Financial Times reported.
The boards of Switzerland’s two biggest banks plan to meet separately this weekend to weigh the idea, the FT said in its report, citing people briefed on the talks whom it didn’t name. The Swiss National Bank and regulator Finma are orchestrating the discussions, the FT said.
Representatives of both banks declined to comment.
UBS and Credit Suisse are opposed to a forced combination, Bloomberg reported earlier Friday, citing people with knowledge of the matter. UBS would prefer to focus on its own wealth-centric standalone strategy and is reluctant to take on risks related to Credit Suisse, the people said, asking not to be identified because the deliberations are private.
Credit Suisse is working on a turnaround after being buffeted by deposit withdrawals and a stock slide. The firm, recipient of a $54 billion credit line from Switzerland’s central bank, has consistently said it has sufficient liquidity, and is working to win back clients.
(Updates with banks declining to comment in third paragraph.)
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