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UBS is discussing scenarios in which the government would take on certain legal costs or other specific losses in any deal, the report said, citing people with knowledge of the matter.
Under one likely scenario, the deal would involve UBS acquiring Credit Suisse to obtain its wealth and asset management units, while possibly divesting the investment banking division, the report added.
UBS Group and Credit Suisse did not immediately respond to Reuters requests for comment.
Reuters reported earlier that Credit Suisse is weighing several survival options as regulators urge the investment bank to pursue a deal with UBS.
