March 19 (Reuters) – UBS AG is asking the Swiss government to cover about $6 billion in costs if it were to buy rival Credit Suisse, a person with knowledge of the talks said, as the two sides raced to hammer together a deal to restore confidence in the ailing Swiss bank.
DEVELOPMENTS
* A takeover of Credit Suisse (CSGN.S) by UBS (UBSG.S) could see the Swiss government offer a guarantee against the risks involved, two people with knowledge of the matter said.
* Credit Suisse’s plan to spin off its investment bank under the First Boston brand is being thrown into doubt by takeover talks, Bloomberg News reported on Sunday.
* The Bank of England has indicated to international counterparts and to UBS that it would back a proposed takeover of Credit Suisse, Sky News reported.
* Berkshire Hathaway Inc’s (BRKa.N) Warren Buffett has held discussions with senior Biden administration officials about the banking crisis, a source familiar with the matter told Reuters.
* U.S. Senator Elizabeth Warren, who is pushing tighter banking regulation, has called for an investigation into the failures of Silicon Valley Bank and Signature Bank, the Wall Street Journal reported on Sunday.
[1/3] A view shows logo of Swiss bank Credit Suisse in front of an office building in Zurich, Switzerland March 16, 2023. REUTERS/Denis Balibouse/File Photo
* First Citizens BancShares (FCNCA.O) is evaluating an offer for Silicon Valley Bank (SIVB.O) and at least one other suitor is seriously considering an offer, Bloomberg News reported on Saturday.
* The Mid-Size Bank Coalition of America has asked regulators to extend federal insurance to all deposits for two years, Bloomberg reported, citing a letter from the coalition.
* The lightning speed of the banking industry’s descent into turmoil has shaken global markets and governments, reviving eerie memories of the global financial crisis. Like 2008, the effects may be long-lasting.
ANALYSIS
* Asset concerns weigh on U.S. regional bank deal talks
* As worries over banks swirl, investors are seeking protection against a market crash.
* Financial or price stability? Fed faces calls to pause
* Bank panic raises specter of 2008, may bring lasting change
Compiled by Reuters editors
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