UBS Asks Swiss Government to Cover $6 Billion for Credit Suisse Takeover

UBS AG is asking the Swiss government’s aid to cover $6 billion if it agreed to buy Credit Suisse, including  the cost of winding down parts of the Swiss bank and potential litigation charges, according to Reuters who cited a source that said both companies are discussing a deal to restore confidence.

One of the sources warned that the deal could lead to 10,000 jobs cut if the two banks combine.

Credit Suisse announced on Thursday it would borrow up to 50 billion Swiss francs ($53.69 billion) from the Swiss National Bank through a covered loan facility and a short-term liquidity facility, in bid to bolster liquidity and investor confidence after a sharp drop in its shares fueled concerns about a global financial crisis.


The crisis of the Swiss bank came after it disclosed in the statement, saying that  it found certain material weaknesses in its internal control over financial reporting, which related to the failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements, including various flaws in internal control and communication.

The failure of the U.S. banking system last week also fueled concerns of investors and customers of the Swiss bank.


Meanwhile, BlackRock who has been reported as a potential buyer of Credit Suisse, denied a report that it is preparing a takeover bid Credit Suisse.