UBS (UBS) will be absorbed by Credit Suisse (CS) in a $2 billion all-stock deal brokered by the government to stave off the failure of the struggling bank.
The Financial Times reports that the two banks have had little interaction and that the Swiss government is working to change rules that require a six-week period for shareholder comments. Swiss authorities will also offer UBS a $100 billion credit line to sweeten the terms.
Despite a CHF 50 billion (about $54 billion) loan from the Swiss government, Credit Suisse failed to restore investor confidence and stave off a sharp decline in its share price.
The bank has been plagued by a series of missteps over the past year, and the banking crisis that was sparked by the collapse of Silicon Valley Bank didn’t help the bank. sick stock price. Last time the company found “material weakness” in its accounting practices, delaying the annual report and raising questions from the US Securities and Exchange Commission.
About six months ago, the bank underwent restructuring trying to shake off scandals and losses.