Based on latest reports according to the FT, there might be talks going on between UBS and CS for a potential merger. Blackrock's Larry Fink is also allegedly preparing a bid for taking over the Swiss Giant. However UBS would want the Swiss National Bank to take over the loss from the distressed Swiss bank. These reports come in while CS is trying to shore up confidence and maintain its credibility after the $54bn liquidity injection.
Any potential merger between UBS and CS could have various hinderances ranging from Anti-competitive watch dogs, clients and even staffers. There is a reason why some clients chose to bank with CS over UBS and vice-versa which could lead to an exodus if the merger goes through. Leaving aside the Anti-competitiveness aspect of the deal the Swiss National Bank would also need to answer to various other Central banks regarding setting such a precedent ensuring such a move does not trickle to other banks amid rising doubts. Many private clients with the Swiss lender chose to have a swiss firm for a reason and they would not be very happy if they were taken over by an American firm like Blackrock, who currently is one of the biggest clients for CS' investment banking division. Various questions lie ahead but one thing is clear, CS is too big to fail.
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