UBS analysis: where does the bank that is about to rescue Credit Suisse from a giant problem stand?

The hottest news on the red-hot stock market is out. UBS is in talks to take over Credit Suisse, which is struggling with huge problems. Can UBS afford this acquisition and could it be a good choice for investors?

UBS Group $UBS is in talks to take over part or all of Credit Suisse $CS, which could involve government support as part of an urgent effort by Swiss and global authorities to restore confidence in the banking system.

Credit Suisse accepted a bailout of more than $50 billion from the Swiss National Bank this week after concerns deepened about its prospects. The measure was not enough to stop Credit Suisse's shares from falling or to stem the loss of bank deposits, prompting the central bank and Switzerland's top financial regulator to hold talks with Credit Suisse's bigger rival, UBS.

I wrote about the current situation at CS a few days ago here: Analysis of the current situation at Credit Suisse: The impoverished bank takes another giant hit after the collapse of SVB. Will it…