The Swiss National Bank (SNB) and the Swiss financial regulator reportedly believe that the acquisition of investment bank Credit Suisse by Switzerland’s largest bank UBS is the “only option” to prevent a “collapse of confidence” in Credit Suisse.
According to a March 18 report by the Financial Times, citing three people familiar with the situation, Switzerland is preparing to use “emergency measures” to speed up its takeover of Credit Suisse by UBS to complete the acquisition before “markets open on Monday.”
It was noted that the emergency measures put in place would allow the deal to proceed without a shareholder vote, bypassing normal Swiss rules that require a “six-week” shareholder consultation period “for consultation on the acquisition.”
The SNB and the Swiss Financial Market Supervisory Authority (FINMA) were said to be working to “reach a regulatory agreement” by Saturday evening, reportedly telling international counterparts that “they see a deal with UBS as the ‘only option’ to prevent the ‘collapse’. trust” in Credit Suisse.
This is an evolving story and more information will be added as it becomes available.
