Swiss Governmentis holding talks on the sustainability of Credit Suisse, a bank that has problems with stability.
The scenarios the government has spoken about include the public statement of support and return. Floating options also have Swiss unit separation, UBSconnection is also on the table.
Agenda in the Swiss Government Credit Suisse
According to sources close to the subject, Swiss authorities and Credit Suisse Group AGThey are discussing ways to stabilize the bank after statements by the bank’s largest shareholder on Wednesday triggered a decline in stocks.
The firm’s executives and government officials talked about options ranging from a public statement of support to a possible liquidity return. In addition, among the ideas expressed, the separation of the Swiss unit is on the agenda. The breakup follows a planned long-term tie-up with the bank’s larger Swiss rival, UBS Group AG. Sources knowledgeable about the subject stated that they did not have any information about which of the options on the table would be applied.
While scenario planning had been going on for some time, urgency was added as the firm’s stock plunged to a record low and the cost of insuring the bank’s debt reached crisis levels.
