Switzerland Archives - Page 2 of 2

Swiss prosecutors say investigating UBS-Credit Suisse merger

Swiss prosecutors are investigating the UBS takeover of Credit Suisse, following pressure from authorities and media leaks. The probe aims to identify any criminal offences and ensure Switzerland’s financial centre remains “clean.” The merger was arranged by the government to prevent a global financial meltdown after Credit Suisse’s share price collapsed due to a series of scandals. The rescue merger is not only “the biggest transaction” since the 2008 financial crisis but also “the first time” two systemically important banks at the global level will merge.

The Online Citizen
3 April 2023

UBS, Credit Suisse tie-up may not lead to Swiss bliss

The Swiss National Bank has acknowledged that the merger of UBS and Credit Suisse to prevent a global financial crisis could create competition issues and cause domestic problems in Switzerland. While UBS was already the largest bank in Switzerland, the acquisition of Credit Suisse will make it even bigger, and the resulting megabank would need careful attention to address competition concerns. Despite this, the SNB has assured that the Swiss banking industry remains resilient and robust. However, the formation of a bigger bank will present greater systemic risks and must comply with more stringent regulations.

The Online Citizen
24 March 2023

Swiss sweat over size of new superbank

UBS and Credit Suisse’s merger will create the biggest bank in Switzerland, raising concerns about its size. Both banks are considered too big to fail and are of strategic importance to the global banking system. Some in business, industry, and politics are sceptical about the merger and the impact on services offered to companies, costs, and competition. The merger prevented the collapse of Credit Suisse and triggered criticism among Swiss political circles, with calls for further regulation and partial nationalization.

The Online Citizen
22 March 2023

Credit Suisse deal wipes out high-risk debt holders

Credit Suisse’s $17.3 billion worth of high-risk debt will be written off as part of its merger with UBS, according to Swiss authorities. The 16 billion Swiss francs of additional tier 1 bonds will be written down, resulting in an increase in the bank’s core capital. Shareholders will receive three billion Swiss francs, while the AT1 bonds will be written off to zero, a blow to bondholders. The merger with UBS was designed to prevent Credit Suisse’s troubles from spreading to the wider banking industry.

The Online Citizen
20 March 2023

Swiss government to meet Thursday on Credit Suisse

Swiss government to hold a special meeting on Credit Suisse after shares plunge to record lows. The country’s second-largest bank borrowed up to CHF50bn from the Swiss central bank to reinforce the group, causing the share price to open 30% higher.