UBS Warns Rushed Credit Suisse Rescue Could Be ‘Considerably More Difficult And Risky’ Than Expected (2024)

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UBS Warns Rushed Credit Suisse Rescue Could Be ‘Considerably More Difficult And Risky’ Than Expected (2024)

FAQs

What happened between UBS and Credit Suisse? ›

UBS AG has succeeded to all the rights and obligations of Credit Suisse AG, including all outstanding Credit Suisse AG debt instruments. The merger facilitates the migration of clients and operations from Credit Suisse to integrated UBS platforms over time, following business, client- and product-specific requirements.

What will happen to Credit Suisse employees after merger with UBS? ›

Around 150 employees will be affected. The first wave of redundancies is scheduled for July. At the end of May, UBS announced the finalisation of its merger with Credit Suisse, after the collapse of the Swiss bank in spring 2023. Just over a year later, the UBS Group has announced the signing of a redundancy plan.

Why did Credit Suisse need to be rescued? ›

One of the key weaknesses that emerged last year was that banks' liquidity requirements proved insufficient. Credit Suisse saw billions of deposits exiting in a matter of days, burning through what had appeared to be comfortable buffers of cash.

Will UBS benefit from credit in Suisse? ›

UBS said its revenue was boosted by the acquisition of Credit Suisse, which it completed in May this year, even as its profits suffered from various expenses related to the takeover including higher staffing costs.

Is UBS at risk? ›

UBS said its risk exposure to the sector across the group increased to $55.09 billion in 2023 from $47.1 billion in 2022, largely due to the acquisition of its rival Credit Suisse. Several other big European banks have larger loan exposures to commercial real estate, official data shows.

Is Credit Suisse in trouble? ›

Without doubt, Credit Suisse's collapse was the fault of executives and board. Its investment bank used far too much capital for far too little return and dragged down the whole group's profits. It consistently destroyed value for investors.

Is UBS bailing out Credit Suisse? ›

The bailout of CS played out over only a few months. To recapitulate, on August 11, 2023, UBS had terminated the loss guarantee and PLB. By then, it had also paid back all emergency loans.

Is UBS laying off? ›

UBS will roll out five waves of job cuts starting in June as it pushes through its takeover of Credit Suisse, which is expected to lead to thousands of layoffs.

Is UBS expected to lay off thousands of employees in five waves? ›

Swiss banking giant UBS is gearing up to implement a series of layoffs in five stages starting from June, as part of its efforts to streamline operations and cut costs following its acquisition of Credit Suisse.

What happens if UBS fails? ›

UBS's balance sheet is already twice the size of the entire Swiss annual economic output. This means the bank could bring down the economy if it goes bust.

What triggered Credit Suisse collapse? ›

Shakeups of Credit Suisse's board, particularly in the aftermath of the Greensill and Archegos scandals, led to a loss of institutional knowledge at the lender. This left Credit Suisse's board unable to find long-term solutions to its shortcomings, leading to a “poor risk culture” inside the institution.

What led to the downfall of Credit Suisse? ›

Hobbled by a series of scandals and failed restructuring plans under successive management teams, Credit Suisse had experienced massive deposit outflows in October 2022.

Will UBS keep Credit Suisse employees? ›

UBS Group AG has been forking out hundreds of millions of dollars to keep Credit Suisse staff. Many have left anyway.

Who is UBS owned by? ›

Who are the shareholders of UBS? According to data from Simply Wall Street, UBS Group biggest shareholders are institutional investors, who own approximately 54% of UBS shares. 45.7% of shares are owned by the general public, which individual insiders own 0.3% and private companies – 0.007%.

Which bank is bigger UBS or Credit Suisse? ›

In terms of global assets under management, UBS was more than twice the size of Credit Suisse. Inside Switzerland, however, Credit Suisse was far closer, with a market share in loans of 12%, versus 14% at UBS.

What caused the collapse of Credit Suisse? ›

A series of scandals and major financial losses saw Credit Suisse suffer repeated hits to its share price in the years following the 2008 financial crash. These scandals undermined confidence in the bank, making it harder for Credit Suisse to either attract customers or raise capital from investors and public markets.

Is Credit Suisse now owned by UBS? ›

UBS Group completed the historic acquisition of its former rival Credit Suisse, marking a new chapter for the Swiss financial sector as the defunct bank has formally ceased to exist.

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