UBS Group is in talks with Swiss official with regard to sealing a deal to acquire embattled bank Credit Suisse, according to reports.
They are trying to work the deal out by this weekend as they seek to navigate thorny issues like government backstop
UBS has put aside its initial opposition to a deal at the prodding of regulators.
UBS is asking the Swiss government to bear certain legal costs and potential future losses in any deal.
Credit Suisse Group AG’s investment banking and trading operations are a key sticking point in talks on UBS Group AG taking over the troubled lender.
UBS is worried about the balance sheet risk associated with Credit Suisse and is also concerned about businesses including leveraged finance.
Credit Suisse was given a $54 billion lifeline by Swiss National Bank this week after investor confidence was lost in the beleagured bank, especially in the wake of the collapse of Silicon Valley Bank.
But even the liquidity boost failed to win trust of investors as the 167-year-old bank saw its shares nosedive more than 30 percent on Wednesday and overall 75 percent of their value over the past twelve months.
According to a Reuters report, UBS is asking the Swiss government to cover about $6 billion in purchasing costs.
The cash would cover the cost of winding down parts of Credit Suisse and potential litigation charges, sources told Reuters.
