LONDON: Wall Street bank JPMorgan said on Thursday that Credit Suisse being taking over by another lender, most likely its Swiss rival UBS, was the most likely scenario for the embattled lender.
JPMorgan said liquidity support indicated from the Swiss National Bank overnight was “not enough” and believed Credit Suisse’s situation was dominated by ongoing market confidence issues with its investment banking strategy and ongoing franchise erosion.
“We see a resolution scenario as most unlikely in our view and more likely an intervention with the 3rd option of a takeover as the most likely scenario especially by UBS.”
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Kian Abouhossein at JPMorgan wrote in a note to clients.
Credit Suisse shares were indicated up 28% in Zurich premarket trading, having fallen by as much as 30% to below 2 Swiss francs ($2.15) the previous day.
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