March 19 (Reuters) - UBS Group AG (UBSG.S) is in emergency talks to buy fellow Swiss banking giant Credit Suisse (CSGN.S) as authorities bid to stave

UBS makes offer for Credit Suisse as contagion fears grow

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2023-03-19 16:30:05

March 19 (Reuters) - UBS Group AG (UBSG.S) is in emergency talks to buy fellow Swiss banking giant Credit Suisse (CSGN.S) as authorities bid to stave off turmoil when markets reopen on Monday, with reports saying UBS has offered to pay up to $1 billion.

Swiss authorities are examining imposing losses on Credit Suisse bondholders as part of a rescue, two sources with knowledge of the matter said on Sunday, while European regulators are apprehensive.

Officials have been racing to rescue the 167-year-old bank, among the world's largest wealth managers, after a brutal week that saw the second- and third-largest U.S. bank failures in history. As one of 30 global banks seen as systemically important, any deal for Credit Suisse could ripple through global financial markets.

At least two major banks in Europe are examining scenarios of contagion possibly spreading in the region's banking sector and looking to the Federal Reserve and the European Central Bank to step in with stronger signals of support, two senior executives with knowledge of the discussions told Reuters.