A merger of UBS Group with Credit Suisse Group is plan A for Swiss regulators seeking to shore up confidence in the nations banking system, the Financial Times reported.
The boards of Switzerlands two biggest banks plan to meet separately this weekend to weigh the idea, the FT said in its report, citing people briefed on the talks whom it didnt name. The Swiss National Bank and regulator Finma are orchestrating the discussions, the FT said.
UBS and Credit Suisse are opposed to a forced combination, Bloomberg reported earlier Friday, citing people with knowledge of the matter. UBS would prefer to focus on its own wealth-centric standalone strategy and is reluctant to take on risks related to Credit Suisse, the people said, asking not to be identified because the deliberations are private.
Credit Suisse is working on a turnaround after being buffeted by deposit withdrawals and a stock slide. The firm, recipient of a $54 billion credit line from Switzerlands central bank, has consistently said it has sufficient liquidity, and is working to win back clients.
