Credit Suisse Shareholder Stopped By FINMA For Increasing Stake: Report

Saudi National Bank's plan to increase its stake in UBS Group's (NYSE:UBS) Credit Suisse reportedly saw a red flag from Swiss regulator FINMA.

Saudi National Bank, already the largest Credit Suisse shareholder, intended to raise interest to 40% from 9.88%, as per Reuters. 

As per the regulation, a foreign investor willing to have an interest of over 10% in a major Swiss bank needs approval from FINMA.

The approval from FINMA would have led to Saudi National Bank injecting $5 billion into Credit Suisse.

As per the report, the reason for the rejection is not apparent.

Last month, UBS closed the acquisition of Credit Suisse.

Also Read: UBS Hopes To Avoid $10B Credit Suisse Backstop, Plans To Recruit Wealth Managers

Price Action: UBS shares are trading higher by 0.45% at $19.94 premarket on the last check Monday.