(MENAFN- Trend News Agency) UBS AG is asking the Swiss government to cover about $6 billion
in costs if it were to buy Credit Suisse (CSGN.S), a person with
knowledge of the talks said, as the two sides raced to hammer
together a deal to restore confidence in the ailing Swiss bank,
trend reports citing
reuters .
The 167-year-old Credit Suisse is the biggest name ensnared in
the turmoil unleashed by the collapse of U.S. lenders Silicon
Valley Bank and Signature Bank over the past week, spurring a rout
in banking stocks and prompting authorities to rush out
extraordinary measures to keep banks afloat.
The $6 billion in government guarantees UBS is seeking would
cover the cost of winding down parts of Credit Suisse and potential
litigation charges, two people told Reuters.
One of the sources cautioned that the talks to resolve the
crisis of confidence in Credit Suisse are encountering significant
obstacles, and 10,000 jobs may have to be cut if the two banks
combine.
Swiss regulators are racing to present a solution for Credit
Suisse before markets reopen on Monday, but the complexities of
combining two behemoths raises the prospect that talks will last
well into Sunday, said the person, who asked to remain anonymous
because of the sensitivity of the situation.
Credit Suisse, UBS and the Swiss government declined to
comment.
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