Post by account_disabled on Feb 28, 2024 4:32:33 GMT -6
The bank resulting from the acquisition of Credit Suisse by UBS could be ready to face its workforce reduction of between 20% and 30% , according to information in the Swiss newspaper Tages-Anzeiger in reference to a senior UBS manager and that collects Reuters . The operation could, in this way, materialize, as suspected , in the elimination of some 11,000 jobs in Switzerland. It was 2 weeks ago, when UBS agreed to buy its Zurich rival, Credit Suisse, for 3 billion Swiss francs ($3.3 billion), less than half its value, to create a large Swiss bank and dispel doubts that They loom over the system. The deal has also raised concerns about the size of a new bank : $1.6 trillion in assets and more than 120,000 employees worldwide.
UBS offers $2 billion to take over Credit Suisse: what are the main difficulties posed by a potential agreement? Jobs at its US investment banking division will also be affected, according to the news, as UBS is in talks to end a deal that would have given merger expert Michael Klein control of much of Credit Suisse's investment banking. In parallel, the Norwegian Asia Phone Number List sovereign fund, Norges Bank Investment Management, has announced on its website that it will vote against the re-election of the president of Credit Suisse, Axel Lehmann, and six other directors at the annual general meeting of the Swiss bank that will take place. will celebrate on Tuesday. "It is not a rescue, it is a commercial solution" The purchase operation was a joint plan and devised by the Swiss Government, the central bank and the market regulator to avoid a collapse of the country's financial system: "It is not a rescue, it is a commercial solution, the best solution "said Karin Keller-Sutter, Swiss Finance Minister.
The agreement reached included a liquidity injection to UBS by the Swiss National Bank for 93,000 million euros (100,000 million dollars) with which to face the possible continuity of client deposit outflows. This support also includes a valuable guarantee of €9 billion for losses in Credit Suisse's credit portfolio. As they have agreed, UBS will absorb the first 5 billion euros in credit losses, the Swiss government the next 9 billion and the former the possible additional losses. The operation, on the one hand, sought to close the crisis opened by Credit Suisse in mid-March when in its annual report the bank itself recognized, among many other problems, "weaknesses" in its financial control system. Likewise, there are several doubts that the operation raises. The main obstacle is that UBS did not have, among its intentions, to take over the bank.