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UBS Nears $2 Billion Deal to Acquire Rival Credit Suisse

According to a source familiar with the matter, UBS is reportedly on the verge of finalizing an agreement to purchase its rival Swiss bank, Credit Suisse.

Credit Suisse and UBS logos
Credit Suisse and UBS logos

Deal Value and Increased Offer

The acquisition is estimated to be worth over $2 billion, following an increased offer by UBS. Credit Suisse's chairman has declined to comment on the matter.

Swiss National Bank's Liquidity Support

The Swiss National Bank has agreed to provide Credit Suisse with a $100 billion liquidity line, as reported by the Financial Times.

Global Impact of Credit Suisse Rescue

Efforts to save the 167-year-old bank, one of the world's largest wealth managers, have accelerated after recent major U.S. bank failures. A successful deal could have significant repercussions for the global financial markets.

European Banks Anticipate Contagion

At least two major European banks are exploring potential contagion scenarios within the region's banking sector and seeking stronger support signals from the Federal Reserve and European Central Bank.

UBS's Request for Swiss Government Guarantees

An individual familiar with the discussions informed Reuters that UBS requested $6 billion in guarantees from the Swiss government to cover the costs of winding down parts of Credit Suisse and potential litigation charges.

Potential Job Losses Due to Merger

One source mentioned that the merger of the two banks could eliminate approximately 10,000 jobs.

Credit Suisse's Struggles and Central Bank Funding

Credit Suisse shares dropped by a quarter in value last week, and the bank had to access $54 billion in central bank funding to recover from scandals that have shaken investor and client confidence.