U.S. authorities weighing in on possible Credit Suisse-UBS deal: Bloomberg News
1:22 pm Saturday, March 18th, 2023
(Reuters) – U.S. authorities are working with Swiss counterparts to broker a deal for UBS AG to buy all or part of Credit Suisse Group AG, Bloomberg News reported on Saturday citing people familiar with the matter.
U.S. officials might seek to weigh in on matters which can impact the finals terms of the deal between the banks, according to the report.
An official at the Federal Reserve declined to comment on the report, while the Treasury Department did not immediately respond to a Reuters request for comment.
UBS is mulling a takeover of its embattled Swiss peer, sources have told Reuters. The plan could see the Swiss government offer a guarantee against the risks involved, while Credit Suisse’s Swiss business could be spun off.
U.S. and European banking executives and regulators have taken measures to shore up the industry to restore confidence. The Biden administration has moved to backstop consumer deposits while the Swiss central bank loaned billions to Credit Suisse to stabilize its shaky balance sheet.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Chizu Nomiyama)