British banking watchdogs have given their blessing to a takeover of Credit Suisse by its Swiss peer UBS, as financial regulators around the world race to contain the industry’s biggest crisis since 2008.
Sky News understands that the Bank of England has indicated to international counterparts and to UBS that it will support the emergency transaction, which both European banking giants want to announce later on Sunday.
Credit Suisse has been brought to the brink of financial calamity despite securing a $54bn (£44bn) credit line from Switzerland’s central bank several days ago.
The move, which was designed to reassure markets and depositors, failed to halt a rush of customer withdrawals, prompting a request from the Swiss government for UBS to explore a takeover of its historic rival late last week.
Jeremy Hunt, the chancellor, and Andrew Bailey, the Bank of England governor, are being kept informed about developments relating to the most significant global banking merger since the financial meltdown of 15 years ago.
Although Credit Suisse has a market capitalisation of just $8bn (£6.6bn) – down from close to $100bn (£82bn) at its 2007 peak – fears for its future have sent shockwaves through financial markets across the world.
Its vast investment bank balance sheet is reported to represent a stumbling block in the talks with UBS, and the precise structure of a deal remained unclear on Sunday morning.
UBS’s board, chaired by the former Morgan Stanley executive Colm Kelleher, is said to have been reluctant to explore a deal with its fellow Swiss bank, which has been forced into a string of capital-raisings after huge fines and restructuring charges.
City sources said authorities in the US had pressed the Swiss government to expedite a solution to the crisis during the course of this weekend.
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Reports suggest that UBS wants the Swiss government to provide a multibillion dollar backstop to insure it against losses arising from the takeover of its smaller rival.
The current tumult in the global banking sector was sparked by the collapse of Silicon Valley Bank in the US earlier this month.
Its UK branch was rescued by HSBC for £1, but a number of other mid-sized American lenders have also been forced to seek emergency funding.
Hopes takeover will avert contagion
Nevertheless, there are hopes that a takeover of Credit Suisse will avert the kind of contagion that evokes genuine comparisons with the crisis of 2008, when banks including Bear Stearns and Lehman Brothers collapsed.
Credit Suisse employs approximately 5,000 people in the UK, making it one of the largest investment banking employers in the City.
The Bank of England declined to comment on Sunday, while Credit Suisse and UBS have been contacted for comment.
England and Scotland fans have found out where their World Cup group games will be played when the tournament kicks off in June.
England, who are in Group L, will begin their tournament against Croatia in Dallas at 4pm EST (9pm BST) on 17 June. They will then go on to face Ghana in Boston at 4pm EST (9pm BST) on 23 June and Panama in New Jersey, New York, at 5pm EST (10pm BST) on 27 June.
Scotland are in Group C, and their first match will be against Haiti in Boston at 9pm EST on 13 June (2am GMT the following morning).
They will go up against Morocco also in Boston at 6pm EST (11pm GMT) on 19 June and then Brazil in Miami at 6pm EST (11pm GMT) on 24 June.
Fans are expected to rush to sort their travel and accommodation plans now that they know where and when the matches take place.
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2:44
England and Scotland learn World Cup fate
Wales and Northern Ireland have yet to find out if they will qualify.
Wales must face a play-off against Bosnia and Herzegovina in Cardiff, then either Italy or Northern Ireland, if they are victorious.
If they beat these play-off opponents, they will secure their place in Group B alongside Canada, Qatar and Switzerland.
However, Northern Ireland will also be vying to guarantee their spot in the same group if they can beat Italy and then either Wales or Bosnia and Herzegovina.
This breaking news story is being updated and more details will be published shortly.
England are in Group L along with Croatia, Panama and Ghana. Their first match will be against Croatia, who beat them in the semi-finals of the 2018 World Cup in Russia.
Image: Pic: Reuters
Scotland’s first match will be against Haiti, in Group C.
Brazil and Morocco are the other Group C teams – both countries were also in the same opening group as Scotland in the 1998 World Cup in France.
Image: Trump and Infantino at the World Cup draw
Wales have yet to find out if they will qualify as they must face a play-off against Bosnia and Herzegovina in Cardiff, and then either Italy or Northern Ireland, if they are victorious.
If they can overcome these play-off opponents then they will secure their place in Group B along with Canada, Qatar and Switzerland. But Northern Ireland will also be vying and hoping to guarantee their spot in the same group if they can beat Italy and then either Wales or Bosnia and Herzegovina.
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1:20
‘Bring it on!’: Scotland fans react to World Cup draw
The Republic of Ireland also need to get through the play-offs first and are paired against the Czech Republic for their semi-final. Should Ireland win that match, they will need to beat either North Macedonia or Denmark to get to the finals where an opening group containing joint hosts Mexico, South Africa and South Korea awaits.
This was a World Cup draw like no other. Crafted less for the teams but for one man.
The choice of venue. The creation of a new trophy. The closing music act.
Donald Trump was lavished with the adulation he craves by FIFA President Gianni Infantino and feels others unfairly deny him.
Knowing how much being overlooked by the Nobel Committee hurt the US president, there was Mr Infantino with FIFA’s newly-created Peace Prize to hand over. And a medal for Mr Trump to wear.
“This is truly one of the great honours of my life,” he said. “And beyond awards, Gianni and I were discussing this. We saved millions and millions of lives.”
This was all on the stage in front of an audience who turned up to find out who they will be playing at the World Cup.
England handed an undaunting route past Croatia, Panama and Ghana. Scotland paired with newcomers Haiti before tricky reunions from their last men’s World Cup in 1998 against Brazil and Morocco.
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Image: Pic: Reuters
But the show before the draw could even begin – presided over by Rio Ferdinand – took almost as long as a football match, at 87 minutes after the noon kick-off was delayed.
There was a walk of self-promotion to complete – “I guess they have to wait” – before taking his seat in the Kennedy Center. Or the Trump Kennedy Center as the president takes to calling the venue picked 1.5 miles from the White House.
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0:35
England manager Thomas Tuchel reacts to draw
“It was falling apart,” he said, delaying the walk into the auditorium. “And now it’s, it’s pretty much back.”
Mr Infantino could only watch on, beaming, at his friend.
“We had a dead country,” Mr Trump went on, “and now we have the hottest country anywhere in the world”.
There was the awkwardness of being reminded, before receiving the peace accolade, about threats to launch military strikes on Venezuela to stop the drugs trade.
“I did settle eight wars, and we have a ninth coming,” he swatted away the question. “Which nobody’s ever done before. But I want to really save lives. I don’t need prizes.”
But FIFA knew how much he wanted more gold for the collection with the prize.
Image: Donald Trump and FIFA president Gianni Infantino. Pic: Reuters
Image: Pic: Reuters
And for all the mockery and disdain targeted at FIFA, how many sports would relish having the US president spend several hours attending a procedural event determining the placing of teams in groups for a tournament?
How many would dish out the same flattery to secure direct lines to the leader of the nation staging their championship?
Many have benefited from Mr Trump’s stardust and swagger being attached to this spectacle.
Even Port Vale’s most famous fan – Robbie Williams – secured a walk-on role, exceeding his profile this side of the Pond.
And the Village People are reaping the rewards of becoming the unlikeliest of Trump hype acts.
The festivities ended with eyes fixed back up to the presidential seating and the YMCA dance being performed.
This was an afternoon that dispelled any pretence that FIFA keeps a distance from politics. It was unapologetically political. But few speak out in the FIFA world as the redistributed wealth keeps rolling back in their direction.
It would be easy to forget this isn’t entirely America’s World Cup. They’re sharing hosting with Canada and Mexico.
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1:20
‘Bring it on!’: Scotland fans react to World Cup draw
And eventually the spotlight was ceded to their leaders – very briefly – as Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney drew out their countries’ names.
But it did live up to FIFA’s mantra that football can unite the world.
The neighbours were brought together here on a snowy day in Washington. And tensions – often stoked by Mr Trump with Canada and Mexico – thawed in the name of football.