A merger this complex could turn out to be a nightmare, particularly given how little time UBS has had.

The move comes after two sub-committees supported a deeper investigation into how the government, Swiss central bank and financial market regulator acted in the run up to the emergency rescue of Credit Suisse.

While the government's commitment cannot be overturned, the vote marks a symbolic rebuke for the authorities, whose decision to largely bypass the nation's legislative has angered many politicians.

Last month, Swiss authorities announced that UBS would buy Credit Suisse in a shotgun merger to stem further banking turmoil after the smaller lender had come to the brink of collapse.

The decision 'will affect around 1,000 employees, who will be deprived of approximately 50-60 million Swiss francs with these measures,' reports say.

Last month, Swiss authorities announced that UBS would buy Credit Suisse in a shotgun merger to stem further banking turmoil after the smaller lender had come to the brink of collapse.

A poll of Swiss economists found that nearly half think the takeover of Credit Suisse was not the best solution, and warned that the situation had dented Switzerland's reputation as a banking centre.

Finma says its main focus is on 'the transitional phase of integration' and 'preserving financial stability'.

Some investors, including a large mutual fund group that also runs a hedge fund, said prospects for banks had gotten progressively worse in recent months given the economic outlook.

The takeover creates a banking giant such as Switzerland has never seen before – and raises concerns about possible layoffs.

UBS would require public guarantees to cover legal costs and potential losses, according to a report by Bloomberg, citing anonymous sources.

Following a crisis that wiped 25% off the value of Credit Suisse shares, the bank sought a liquidity line from the Swiss National Bank in the first such move for a global lender since the financial crisis of 2008.