scorecardresearch
Swiss authorities weigh nationalising Credit Suisse amid takeover talks with UBS

Swiss authorities weigh nationalising Credit Suisse amid takeover talks with UBS

According to sources familiar with the matter, the Swiss government is exploring all options to help salvage the beleaguered bank, which has seen its share price plummet this week.

Credit Suisse Credit Suisse

Swiss authorities are reportedly mulling over the possibility of fully or partially nationalizing Credit Suisse, as it looks for alternatives to a UBS takeover. The move comes in response to the growing crisis at the bank.

According to sources familiar with the matter, the Swiss government is exploring all options to help salvage the beleaguered bank, which has seen its share price plummet this week. The possibility of nationalization is being seriously considered as it would provide the bank with the necessary capital to weather the storm, and could also provide a measure of stability and assurance for investors.

Meanwhile, two sources with knowledge of the matter revealed that Swiss authorities are considering imposing losses on Credit Suisse bondholders as part of a rescue plan, a move that European regulators are wary of due to potential ripple effects on investor confidence in other institutions.

Also read: Credit Suisse reportedly resisting $1 billion takeover offer by UBS

Despite these concerns, Swiss authorities are said to be determined to find a solution to the crisis at Credit Suisse. The bank's problems were compounded by the collapse of Silicon Valley Bank and Signature Bank, which has triggered a sell-off in banking stocks and heightened fears of a wider banking crisis.

Also Read: First Citizens considers bid to acquire Silicon Valley Bank, report says

Also Read: 186 US banks at risk of failure similar to Silicon Valley Bank, says research; here's why

Published on: Mar 19, 2023, 8:19 PM IST
Posted by: Pranav Dixit, Mar 19, 2023, 8:13 PM IST