Credit Suisse rescue talks hit crunch time

STORY: Talks over rescuing Credit Suisse rolled into Sunday as UBS sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival.

That's according to a source with knowledge of the talks.

Authorities are scrambling to resolve a crisis of confidence in 167-year-old Credit Suisse.

It's the mostly globally significant bank caught up in the turmoil after two U.S. lenders collapsed last week - Silicon Valley Bank and Signature Bank.

One source warned the Credit Suisse talks are encountering significant obstacles, and 10,000 jobs could be at stake if the banks combine.

Credit Suisse, UBS and the Swiss government declined to comment.

The frenzied weekend negotiations follow a brutal week for banking stocks.

Credit Suisse shares lost a quarter of their value.

U.S. President Joe Biden's administration has moved to backstop consumer deposits.

And the Swiss central bank lent billions to Credit Suisse to stabilize its shaky balance sheet.

UBS was under pressure from the Swiss authorities to take over its local rival, two people with knowledge of the matter said.

The plan could see Credit Suisse's Swiss business spun off.

Switzerland is preparing to use emergency measures to fast-track the deal, the Financial Times reported, citing two people familiar with the situation.

U.S. authorities are involved in brokering the deal, Bloomberg reported.

The White House and U.S. Treasury declined to comment.