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To be frank even that very low buying price together with the 6 billion CHF that UBS asked from the Swiss government as a warranty is not enough to cover for the almost unlimited amount of money they may lose in Credit Suisse related US class action and other liability related lawsuits due recent and not so recent events.

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That's likely why the offer is so low. The $1B doesn't go toward covering any potential losses. The $1B would go to Credit Suisse shareholders and then UBS would own the company and be on the hook for the liabilities. To put it another way, the deal's complete price is $1B in cash plus whatever the liabilities are.

Why would UBS take on potentially unlimited amount of liability? That doesn't make sense at all.

Conventional wosdom would say that liabilities were already priced in

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