Credit Suisse Investment Bank Said a Key Sticking Point in Talks

Credit Suisse Group AG’sinvestment banking and trading operations are a key sticking point in the government-brokered talks for rival UBS Group AG to take over the troubled lender, according to people with knowledge of the matter.

UBS is worried about the balance sheet risk associated with the investment bank, which has suffered a string of losses and scandals in recent years, the people said, asking not to be identified at the matter is private. It’s concerned about businesses including leveraged finance, which has been in the crosshairs of regulators in recent months, the people said.

UBS declined to comment. ...