The Swiss government is said to be prepared to take Credit Suisse under its wing. Could Switzerland's postal bank become a player?
What a difference a few days make. After getting a 50 billion Swiss franc liquidity lifeline from the Swiss National Bank late last week, talk has now turned to whether Swiss authorities are considering a full or partial nationalization of Credit Suisse.
In what might be its only option if a deal with UBS to take over Credit Suisse in whole or part collapses, the Swiss government could step in to take over Credit Suisse, according to a «Bloomberg» (behind paywall) story citing people familiar.
UBS over the weekend offered what some observers might consider a shockingly low offer price of 25 centimes for Credit Suisse relative to its Friday closing price of 1.86 Swiss francs.
Postfinance a Savior?
The deal under discussion for UBS to take over Credit Suisse is not only a complex transaction in a short time frame, but is also said to face resistance from Credit Suisse's largest shareholder, the Saudi National Bank.
UBS is said to be seeking government guarantees of around six billion dollars from the Swiss government to agree to the deal, according to «Reuters».
If nationalization does occur, Postfinance, a wholly owned subsidiary of the state-owned Swiss postal system, could become the savior of the historical bank which was born out of the Schweizer Kredit Anstalt.
More Details to Come
Authorities are trying to find a solution for the bank amidst the turmoil before exchanges in Asia open for trading.
The Swiss Federal Council has issued an invitation for an «important» Sunday evening.
