The Swiss National Bank (SNB) and Swiss financial regulators reportedly believe that the acquisition of investment bank Credit Suisse by UBS, Switzerland’s largest bank, is the “only option” to prevent a “collapse of confidence” in Credit Suisse.
According to a Financial Times report on March 18 that cited three people familiar with the situation, Switzerland is ready to use “emergency measures” to speed up the takeover by UBS of Credit Suisse, in an effort to complete the acquisition before “the market opens Monday.”
It noted that the emergency measures taken would allow the deal to be carried out without a shareholder vote, bypassing Swiss regulations that normally require a “six-week” consultation period for shareholders “to consult on the acquisition.”
It said that the SNB and the Swiss Financial Market Supervisory Authority (FINMA) were working to “reach a regulatory agreement” on Saturday night, as it informed its international counterparts that “they consider a deal” with UBS to be the “only option” to prevent it. “collapsed in confidence” at Credit Suisse.
This is a developing story, and further information will be added as it becomes available.