UBS Group AG is offering to buy Credit Suisse Group AG for up to $1 billion in an all share deal to take over the stricken lender, according to the Financial Times. Swiss authorities plan to change the country’s laws to bypass a shareholder vote on the transaction as they rush to finalize a deal before Monday, the newspaper reported on Sunday, citing four people with direct knowledge of the situation. The offer was communicated on Sunday morning with a price of 0.25 francs a share to be paid in UBS stock, according to the report. UBS has also insisted on a material adverse change that voids the deal if its credit default spreads jump by 100 basis points or more, the people said. Credit Suisse closed down 8% to 1.86 francs at the close on Friday. A government-brokered deal would address a rout in Credit Suisse that sent shock waves across the global financial system over the past week when panicked investors dumped its shares and bonds following the collapse of several smaller US lenders. A liquidity backstop by the Swiss central bank briefly arrested the declines, but the market drama carries the risk that clients or counterparties would continue fleeing, with potential ramifications for the broader industry. The complex discussions over what would be the first combination of two global systemically important banks since the financial crisis have seen Swiss and US authorities weigh in, according to people with knowledge of the matter. Talks accelerated Saturday, with all sides pushing for a solution that can be executed quickly after a week that saw clients pull money and counterparties step back from some dealings with Credit Suisse. The two banks have had limited contact, with terms heavily influenced by the Swiss National Bank and regulator Finma, the Financial Times reported. The situation is very fast moving and there’s no guarantee a deal will be reached or that the terms will remain the same, the newspaper reported. The government is preparing emergency measures to allow the takeover to proceed at pace and plans to introduce legislation that will bypass the normal six-week consultation period required for UBS shareholders, the newspaper reported. NN: Sunday rumors are a deal is very very close. If the problem child banks are saved the markets will breath a sigh of relief. Next its the FED on tap….. Tuesday