Rescue, relief

Authorities were scrambling to rescue Credit Suiss as UBS AG sought $6 billion from the Swiss government as part of a possible purchase of its rival, a person with knowledge of the talks said. A crisis of confidence has rocked 167-year-old Credit Suisse, among the world’s largest wealth managers, in the wake of the collapse of U.S. lenders Silicon Valley Bank and Signature Bank. As one of 30 global systemically important banks, Credit Suisse’s failure would ripple throughout the entire financial system.The last days of Credit Suisse, proclaimed the front page of Swiss newspaper NZZ am Sonntag over an illustration of the bank’s headquarters in flames. The guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people said. Credit Suisse, UBS and the Swiss government declined to comment.The frenzied weekend negotiations follow a brutal week for banking stocks and efforts in Europe and the United States to shore up the sector. U.S. President Joe Biden’s administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilise its shaky balance sheet.UBS was under pressure from the Swiss authorities to take over its local rival to get the crisis under control, two people with knowledge of the matter said. The plan could see Credit Suisse’s Swiss business spun off, while Bloomberg reported that the takeover talks were throwing into doubt plans to hive off its investment bank under the First Boston brand.Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.