US authorities are working with their Swiss counterparts as they seek to hammer out a deal for UBS Group AG to buy all or part of its struggling rival Credit Suisse Group AG, according to people familiar with the matter.
(Bloomberg) —
US authorities are working with their Swiss counterparts as they seek to hammer out a deal for UBS Group AG to buy all or part of its struggling rival Credit Suisse Group AG, according to people familiar with the matter.Â
A tie-up between the two banks would be of interest to Washington regulators because both lenders have operations in the US and are considered systemically important in Switzerland. American officials may seek to weigh in on matters that could impact final terms of any deal, said one of the people, who asked not to be identified discussing the confidential conversations.
Representatives for the Federal Reserve and Treasury Department declined to comment.Â
The time scale for agreement is fluid. The goal is for an announcement of a deal between the two banks by Sunday evening at the latest, according to a person familiar with the matter, who also asked not to be identified discussing the talks. The Financial Times reported that a deal could emerge as soon as Saturday evening.Â
As the drama plays out in Europe, US officials are dealing with their own banking crisis at home following the collapse of three mid-sized lenders this month. On Friday, President Joe Biden sought to instill calm, telling reporters that the situation had improved after authorities took extraordinary measures.
–With assistance from Christopher Condon.
(Updates with Treasury declining to comment in the third paragraph.)
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