UBS, regulators race to seal Credit Suisse deal as soon as Saturday – FT

(Reuters) – The Swiss National Bank and Swiss regulator FINMA have told their international counterparts they regard a deal with UBS Group as the only way to prevent a collapse in confidence in Credit Suisse Group, the Financial Times reported on Saturday.

UBS, Credit Suisse and key regulators are rushing to finalise a deal on the merger of the two Swiss banks as soon as Saturday evening, the FT reported, citing people familiar with the matter.

FINMA declined to comment on the FT report. UBS and Credit Suisse did not immediately respond to a Reuters request for comment.

Reuters earlier reported that UBS was coming under pressure from the Swiss authorities to carry out a takeover of its local rival to get the market turmoil surrounding Credit Suisse under control. The plan could see the Swiss government offer a guarantee against the risks involved, while Credit Suisse’s Swiss business could be spun off.

(Reporting by Jyoti Narayan in Bengaluru; Editing by Frances Kerry and Hugh Lawson)