Ulrich Koerner, Managing Director of Credit Suisse Group. Hollie Adams/Bloomberg via Getty Images
Swiss authorities are considering full or partial nationalization of Credit Suisse Group AG as the only other viable option apart from a takeover of UBS Group AG, according to people familiar with the matter.
The country is considering either taking over the bank in its entirety or having a significant stake if a takeover by UBS Group AG collapses due to the complexity of closing the deal and the short timeline, said the sources, asking not to be identified. because the matter is private.
The situation is very fluid and could still change as authorities seek to finalize a solution for the bank when Asian markets open, which is late in the evening in Europe, the sources said.
The Swiss finance ministry declined to comment.
A takeover of UBS presents multiple complexities, including thorny issues such as a government backstop that would cover potential legal and other losses. The biggest rival has also been reluctant to take on investment bank Credit Suisse, Bloomberg reported on Saturday.
UBS is asking the government to bear some legal costs and potential future losses in any takeover, the people said, with a report putting the figure at around $6 billion. He has submitted an offer of around $1 billion for Credit Suisse, which the small Swiss bank considers too weak.
