After a third straight quarter of losses at Credit Suisse as well as an upcoming round of layoffs, the Swiss blog Inside Paradeplatz has reported that State Street may make a bid for Credit Suisse at 9 francs per share.

Why should we care?
Especially when compared with the predicted consolidation and acquisition of fintechs due to a global downturn, the prospect of State Street acquiring a giant like Credit Suisse raises a number of questions. In particular, the bank’s relatively steady decline under CEO Thomas Gottstein should make us wonder what makes Credit Suisse a tantalizing prospect for acquisition. “Today’s profit warning blames ‘the current geopolitical situation’ and ‘significant monetary tightening,’ yet we would argue CS’ predicament may be largely self-inflicted,” according to Citigroup analysts in a note to clients. Despite its downturn, Credit Suisse still retains a massive portfolio and an extensive range of clients that make it a tantalizing prospect for a buyout. A State Street representative told Inside Paradeplatz that it’s preparing a response to the report, while Bloomberg named analysts who “were skeptical about a deal, citing the lack of strategic rationale for the US firm.” As the blog notes, while the rumors may be “inherently unsecured,” such a deal would “shake global banking.”