Societe Generale and Deutsche Bank declined to comment on the report. However, the bank is thought to be waiting until next week to make any decisions on lowering exposure.Īnother global bank is seeking to reduce its exposure to Credit Suisse through unsecured debts, Reuters reported, while a fifth has asked Credit Suisse to “gross settle”, or provide upfront payments, in trades. HSBC has also started scrutinising loans linked to Credit Suisse securities more closely, Reuters said. Major institutions were limiting or monitoring dealings with Credit Suisse on Friday.įrance’s Societe Generale was maintaining existing trades with Credit Suisse but has decided not to increase them, while Deutsche Bank has slashed the value it places on Credit Suisse securities that are put up by clients as collateral for loans, sources told Reuters. Some analysts have suggested only a takeover by arch-rival UBS would be enough to stabilise the situation. Top executives at Credit Suisse were preparing for talks this weekend to discuss options, which could include a more radical restructuring and a more rapid wind-down of its investment banking arm.Ī potential break-up is also being looked at, with one person involved in the talks telling the Financial Times: “We’re looking at everything possible that could be done. Global regulators met last night to discuss how to stabilise the bank and the wider financial system, the Financial Times reported. The latest slump came just a day after the Swiss central bank said it would lend up to $54bn (£44bn) to shore up Credit Suisse. It came as European banks were racing to cut back ties to Credit Suisse on Friday night as executives at the troubled lender prepared for weekend crisis talks over its future.Īt least four rivals were restricting or more closely scrutinising trades with the Swiss bank on Friday evening, including HSBC, Societe Generale and Deutsche Bank.Ĭredit Suisse, which insists it has strong, healthy finances, declined to comment on the reports.Įfforts to restore confidence fell flat on Friday, with the bank’s shares falling by as much as 12pc.
UBS is worth more than $56bn, while Credit Suisse closed on Friday with a value of $8bn after its share price tanked this week. The potential takeover, which was first reported by the Financial Times, will see the boards of both companies meet separately over the weekend to weigh up a potential deal. Switzerland's central bank and Finma, the country's financial regulator, were said to be orchestrating talks between the two companies, which could see UBS snap up all or part of its beleaguered rival. UBS is reportedly in talks to buy Credit Suisse as Swiss regulators bring the country's two biggest banks to the table in a bid to prevent a broader crisis.
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