Regulators and the Swiss National Bank have heavily influenced the deal, requesting emergency measures to expedite the takeover because they are concerned about the viability of the country’s second-largest lender following deposit outflows and increased panic.
The deal will see UBS significantly reduce Credit Suisse’s investment bank, with the combined entity accounting for no more than one-third of the merged group.
However, the deal’s fairness to Credit Suisse and its shareholders has been questioned, and plans to bypass a shareholder vote and circumvent normal corporate governance rules have been dubbed poor corporate governance.
On Saturday night, the Swiss cabinet met in Bern’s finance ministry for a series of presentations from government officials, the SNB, and banking sector representatives, and the government is preparing emergency measures to expedite the takeover and plans to introduce legislation to seal the deal immediately. UBS will seek government concessions and protections, particularly in relation to any pending legal cases and regulatory investigations into Credit Suisse that could result in fines or losses.
