People familiar with the matter: UBS and Swiss regulators will complete the transaction with Credit Suisse as soon as Saturday evening

According to reports, the Financial Times quoted people familiar with the matter as saying that Credit Suisse, UBS and their main regulators are stepping up efforts to reach an agreement on the historic merger of Switzerland’s two largest banks, which will be reached as soon as Saturday evening. The Swiss Central Bank and the Swiss Financial Market Supervisory Authority (Finma) have stated to their international counterparts that they believe that reaching a deal with UBS is the only option to prevent the market from collapsing in confidence in Credit Suisse. Regulators in the United States, Britain, and Switzerland are considering the legal structure of the transaction, as well as several concessions UBS is seeking.

Interpretation of this information:

The Financial Times has reported that Credit Suisse, UBS, and their primary regulators are putting a lot of effort into finalizing an agreement regarding the historic merger of Switzerland’s two largest banks. The possible agreement is expected to be reached by Saturday night at the earliest. The Swiss Central Bank and the Swiss Financial Market Supervisory Authority (Finma) have expressed that reaching an agreement with UBS is essential to prevent a loss of confidence in Credit Suisse, which could have a severe impact on the market. Meanwhile, regulators in the United States, Britain, and Switzerland are currently examining the legal structure of the transaction and various concessions that UBS is requesting.

The possibility of a merger between Credit Suisse and UBS is a significant development in the Swiss banking industry. The two banks hold a considerable market share in Switzerland, and a merger would create a financial powerhouse. However, the consolidation of two banks also comes with certain risks, particularly in terms of regulatory compliance and competition within the market. Thus, it is not surprising that various regulatory agencies are scrutinizing the legal structure of the merger to ensure that it is in line with their respective countries’ rules and regulations.

Additionally, the regulators are considering the concessions that UBS is seeking as part of the deal. As a potential major shareholder of the merged bank, UBS will undoubtedly want to ensure that it has a say in the strategic direction of the new entity. Therefore, the regulators will need to evaluate the concessions that UBS is seeking to ensure that they are consistent with the wider interests of the banking industry, the broader economy, and the integrity of financial markets.

In summary, the news of Credit Suisse and UBS’s merger and the regulators’ efforts to arrive at an agreement are significant developments in the banking sector. Three essential keywords that can be used to summarize this content are: merger, regulation, and concession. The merger of the two banks may create a financial powerhouse; regulators are scrutinizing the deal’s legal structure, and they are considering the concessions that UBS is seeking.