According to sources familiar with the situation, the Swiss National Bank and Switzerland’s financial regulator, FINMA, are preparing emergency measures to accelerate the takeover of Credit Suisse by UBS, Switzerland’s largest bank.
The takeover is deemed the “only option” to prevent a “collapse in confidence” in Credit Suisse. The measures would allow the deal to proceed without a shareholder vote and bypass Swiss regulations requiring a six-week consultation period for shareholders to review the acquisition.
The SNB and FINMA are reportedly working to reach a regulatory agreement by Saturday night to finalize the acquisition before markets open on Monday.
UBS plans to continue Credit Suisse’s investment bank downsizing, with the combined entity to make up no more than a third of the merged group. The successful merge would create one of the biggest global systemically important financial institutions in Europe.