UBS is probably talking to the troubled Credit Suisse about a takeover

Dhe major Swiss bank UBS is apparently talking to its troubled competitor CreditSuisse about an acquisition. UBS could acquire all or part of Credit Suisse, the Financial Times reported, citing people familiar with the matter. The boards of directors of the two financial institutions wanted to sit down separately at the weekend. The Swiss National Bank (SNB) and the financial market regulator Finma organized the talks to build confidence in the country’s banking sector.

UBS and Credit Suisse declined to comment on the report. Credit Suisse shares were up 9 percent after hours. In regular trading in Switzerland, they fell by around eight percent on Friday.

Credit Suisse has been struggling with a loss of confidence from investors and customers for days. Originally, the triggers were home-made problems. But the crisis surrounding the American Silicon Valley Bank further fueled the uncertainty. On Wednesday evening they presented themselves Swiss National Bank and the financial market regulator Finma behind Credit Suisse. A few hours later, the institute began tapping into an emergency loan worth CHF 50 billion.

According to insiders, extraordinary meetings of different teams have been scheduled for the weekend. Financial data should be prepared and scenarios for the future of the Swiss big bank be worked out, as people familiar with the situation told the Reuters news agency on Friday.

According to a media report, UBS and Credit Suisse reject a forced merger. UBS prefers to focus on its existing strategy and is reluctant to take risks related to troubled Credit Suisse, news agency Bloomberg reported on Thursday, referring to insiders. Credit Suisse wants to take its time to turn the tide on its own.