Credit Suisse and UBS may see a possible merger as the chairmen of both banks are already considering creating a single European banking giant, according to reports.
The move would create one of Europe's largest financial institutions, and could boost the efforts of both to gain valuable market share in Asia. Consultants from McKinsey & Company have reportedly been tapped to draw up plans for a "mega-merger."
Reported by vetted financial blog Inside Paradeplatz, the merger project has been named Signal and is headed by UBS chairman, Axel Weber, who is in talks with Urs Rohner from Credit Suisse. Weber is said to have already warned Finance Minister Ueli Maurer and the Federal Financial Market Supervisory Authority of the planned merger.
Weber is likely to become the chairman of the combined entity, which means someone from Credit Suisse will fill the position of CEO.
With annual revenues of more than $30bn, the UBS Group is a multinational investment bank and financial services company founded and based in Switzerland. Credit Suisse Group is a global wealth manager, investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centres around the world, and has annual revenues of more than $24bn.
If approved, the merged entity would be one of Europe's largest investment entities and on a par with Wall Street giants Goldman Sachs, JP Morgan and Wells Fargo.