The Swiss regulator FINMA forbade Saudi National Bank from increasing its ownership in Credit Suisse from 9.88% to around 40%, according to a story in Blick newspaper on Sunday.
In a rescue operation led by Swiss authorities, UBS agreed to purchase Credit Suisse on March 19 for a discounted price of three billion Swiss francs ($3.4 billion), saving Switzerland’s second-largest bank from bankruptcy.
For a foreign investor to acquire a holding greater than 10% in a significant Swiss bank, FINMA must approve the transaction.
It was unclear why FINMA opposed the plan that would have seen Saudi National Bank, which was already Credit Suisse’s largest shareholder; inject $5 billion into the bank, according to Swiss newspaper Blick, which did not name its sources.
Credit Suisse chose not to respond. Both FINMA and Saudi National Bank were unable to comment right away.
Last month, UBS completed the emergency purchase of Credit Suisse, creating a massive Swiss banking and wealth management conglomerate that is in charge of more than $5 trillion in assets and has a balance sheet worth $1.6 trillion.
Only 0.5% of UBS was acquired in exchange for the Saudi National Bank’s holding in Credit Suisse.
