While the crypto sector has seen a view strong days, the legacy banking system is still fighting a global bank crisis. In Switzerland, banks, authorities, and government officials are under intense time pressure to discuss the rescue of the struggling Credit Suisse. All sides want UBS to takeover Credit Suisse before the stock exchanges open on Monday. Credit Suisse has allegedly rejected an offer from UBS and may be nationalized.
UBS had previously offered to buy Credit Suisse for up to $1 billion, according to the Financial Times (FT). According to the report, the Swiss government planned to change the country’s laws to avoid a shareholder vote on the deal. However, Bloomberg reported a short time later that Credit Suisse was resisting the offer with the support of its largest shareholder.
According to the Financial Times, the proposed share swap between the two banks in Switzerland was expected to be signed as early as Sunday evening. But the price for the deal would have been a fraction of Credit Suisse‘s closing price on Friday.
UBS allegedly asks for extensive state guarantees for an emergency takeover of its rival Credit Suisse. It is about an order of magnitude of about six billion dollars. However, higher or lower amounts are possible depending on the terms of the deal, he said. The Swiss government also met in Bern on Saturday for a special session.
If the UBS deal falls through, Credit Suisse could be partially or fully nationalized. This is the only other option, reports the industry portal “Bloomberg.”