The government of Swiss has resumed this Sunday the meeting that began on Saturday night to see how to prevent Credit Suisse keep sinking this Monday. On Friday the situation in the stock market was complicated despite the fact that the country’s regulators approved a loan of more than 50,000 million euros to cushion the blow.
According to the Bloomberg agency, there are rumors that ensure that UBSa potential acquiring entity, has asked the Swiss government for guarantees that a partial or complete acquisition of its rival will not cause it legal problems or losses.
This bank employs more than 50,000 people worldwideof which 17,000 are in Switzerlanda large number of positions that would be in jeopardy if the bank is sold and its structure reduced.
The Swiss Association of Bank Employees (Aseb) “demands the immediate creation of a working group”, a team to address the problems of “jobs at risk“the union wrote in a statement.
“No decision should be taken before including the social partners” in the debates, he adds.
The union insists on the need to adopt measures that mitigate the “dramatic” economic consequences for employment.
Swiss authorities were locked in a race against time on Sunday to find a solution before the Swiss stock market opened on Monday, in order to save the bank, mired in chaos and unable to reassure investors.
According to various media outlets, the Swiss authorities are moving towards a full or partial takeover of the bank by its Swiss competitor UBS.
Like UBS, Credit Suisse is in the business of wealth management and investment banking and, like its competitor, it also relies on its local business, which offers mortgages and credit to SMEs. In Switzerland, Credit Suisse retail banking has 95 branches, while UBS has about 200.
The risk of duplication is considered significant as the profiles of UBS and Credit Suisse are similar.
The possibility of a takeover by UBS was raised by financial analysts on Thursday, following a historic drop in the share price. Analysts had suggested that Credit Suisse’s alpine business could be broken up or listed separately if UBS took control.
Shares of Credit Suisse fell to a record low of 1.55 Swiss francs (1.56 euros) on Wednesday at a time of stock panic over fears of contagion from the recent bankruptcy of US bank SVB. The Swiss central bank had thrown Credit Suisse a lifeline by making up to 50 billion francs available. But after a brief respite, shares fell again on Friday.
Source: Euronews Español
