UBS is on the verge of acquiring Credit Suisse with 6 billion in help from the Swiss government
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UBS faces millions in penalties over Credit Suisse’s $5.5bn Archegos debacle
Fines from the US and UK could range between $100m and $300mwww.fnlondon.com
UBS faces millions in penalties over Credit Suisse’s $5.5bn Archegos debacle
Fines from the US and UK could range between $100m and $300m
The likely hit comes just days after UBS’s completion of its acquisition of its beleaguered Swiss rival
AFP via Getty Images
By
Penny Sukhraj
Tuesday June 20, 2023 8:22 am
Credit Suisse’s relationship with family office Archegos Capital is set to hit UBS following investigations by UK, Swiss and US regulators.
Hundreds of millions in potential penalties could come just days after UBS completed its acquisition of its beleaguered Swiss rival in a landmark deal backed by the Swiss government, the Financial Times reported.
Fines from the US and UK could range between $100m and $300m, people familiar with the matter told the FT.
Credit Suisse had set aside around $35m for likely fines stemming from Archegos, amid an overall $5.5bn hit from the collapse of the firm – the biggest among the $10bn fallout for global banks that offered prime broking services. At the time, UBS’s losses stood at around $861m.
READ Bankers part ways with Credit Suisse over Archegos
Investments held by Archegos plummeted in March 2021, forcing Credit Suisse and other lenders to sell large positions at losses. The Swiss bank had lent more to Archegos relative to its size and was also among the last to exit the positions, The Wall Street Journal previously reported.
The fiasco pushed Credit Suisse to cut its dividend and raise fresh capital from investors to shore up its balance sheet. Top executives were also ousted in the wake of the loss as a Credit-Suisse commissioned report by law firm Paul Weiss revealed a “fundamental failure of management and controls” in its investment bank and a “lackadaisical attitude towards risk”.
The FT reports that according to people familiar with the matter, Credit Suisse has requested the publication of regulatory findings by the end of July.
UBS has a $4bn provision to deal with any litigation and regulatory fallout on the back of its takeover in March.
SNB Offers Roughly $100 Billion Liquidity Line to UBS as Part of Credit Suisse Deal, Sources
SNB Offers Roughly $100 Billion Liquidity Line to UBS as Part of Credit Suisse Deal, Sources
www.wsj.com
SNB Offers Roughly $100 Billion Liquidity Line to UBS as Part of Credit Suisse Deal, Sources
By Margot Patrick
and Ben Dummett
Updated March 19, 2023 1:14 pm ET
The Swiss National Bank has offered UBS Group AG around $100 billion in liquidity to help it take on the operations of Credit Suisse Group AG, according to the people familiar with the matter. Details of the liquidity offer couldn’t be learned but are part of the talks to engineer a takeover of Credit Suisse.
Credit Suisse’s Fund Outflows Continue With $6 Billion Pulled
(Bloomberg) -- Credit Suisse Group AG’s asset management arm saw clients continue to pull money from its investment funds this quarter, underscoring the challenges for UBS Group AG as it integrates its former rival. Most Read from BloombergUBS Preparing to Cut Over Half of Credit Suisse...finance.yahoo.com
Credit Suisse’s Fund Outflows Continue With $6 Billion Pulled
Steven Arons
Wed, June 28, 2023 at 3:14 AM EDT·1 min read
1 / 2
Credit Suisse’s Fund Outflows Continue With $6 Billion Pulled
(Bloomberg) -- Credit Suisse Group AG’s asset management arm saw clients continue to pull money from its investment funds this quarter, underscoring the challenges for UBS Group AG as it integrates its former rival.
Most Read from Bloomberg
Investors took out about $6 billion through June 22 from open-end funds and ETFs tracked by Morningstar Direct. The data covers funds holding more than $150 billion worth of assets, which is roughly equivalent to 40% of the investment unit’s total assets under management. It excludes money market funds, feeders and funds of funds.
The figures are an early indication of the performance of Credit Suisse asset management unit, which has seen clients pull for five consecutive quarters amid a crisis of confidence that saw it collapse into the arms of UBS in March. Stemming those outflows has been a key priority for the leadership of the combined bank.
Assets under management at Credit Suisse’s investment unit have been dropping since the end of 2021 when they stood at 477 billion Swiss francs ($533 billion). They hit 399 billion francs at the end of the first quarter.
--With assistance from Marion Halftermeyer.
Most Read from Bloomberg Businessweek
UBS ‘preparing to cut more than half of inherited Credit Suisse workforce’
Between 30,000 and 35,000 staff likely to leave combined group this year, according to reportwww.theguardian.com
UBS ‘preparing to cut more than half of inherited Credit Suisse workforce’
Between 30,000 and 35,000 staff likely to leave combined group this year, according to report
Phillip Inman
@phillipinman
Wed 28 Jun 2023 06.42 EDT
The Swiss investment bank UBS is reportedly preparing to cut more than half the 45,000 staff it inherited from the takeover of stricken rival Credit Suisse, in a move that is expected to begin as early as next month.
Insiders have indicated that between 30,000 and 35,000 staff are likely to leave the combined organisation this year in three rounds of cuts beginning in July, according to Bloomberg News.
Credit Suisse employees will bear the brunt of the cuts, with about 25,000 posts held by its staff before the takeover expected to be removed.
The prospect of the huge job losses is a further blow to the City of London after rivals Morgan Stanley and Goldman Sachs announced a reduction in staff numbers earlier this year.
Credit Suisse offices in the capital are expected to be among of the worst hit as UBS seeks to protect operations in Switzerland. Senior executives, traders and thousands of support staff in New York and some parts of Asia are also expected to be told their positions are redundant, according to the report.
UBS has previously stressed that the bank is keen to reduce costs overall and has not set a target for a reduction in the workforce. It reluctantly agreed to buy Credit Suisse in a deal thrashed out with the Swiss government and local regulators in March, after the rival bank came close to bankruptcy.
The costs of the merger were expected to reach $17bn (£13.4bn), although UBS is estimated to have inherited a portfolio of assets from Credit Suisse worth $35bn, and in the immediate aftermath of the takeover the combined workforce rose to 120,000.
Shares of UBS rose 1.4% at the open on Wednesday, trading at 17.81 Swiss francs ($19.907) as of 9.05am in Zurich. A spokesperson for UBS declined to comment on the report of job cuts.
At an event in Zurich on Tuesday the UBS chief executive, Sergio Ermotti, said the integration was going “very well”
ADevilYouKhow
Rhyme Reason
Credit Suisse collapse inquiry to keep files secret for 50 years
Swiss parliament declines to comment after time frame reported by newspaper Aargauer Zeitung
Credit Suisse collapse inquiry to keep files secret for 50 years
Swiss parliament declines to comment after time frame reported by newspaper Aargauer Zeitung
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The investigation will focus on the activities of the Swiss government, financial regulator and central bank in the run-up to the emergency takeover of Credit Suisse by UBS in March. Photograph: Yui Mok/PA Wire
John Revill
Sat Jul 15 2023 - 15:53
A parliamentary investigation into the collapse of Credit Suisse will keep its files closed for 50 years, according to a parliamentary committee document, a level of secrecy that has triggered concern among Swiss historians.
The document means the investigating commission would hand over its files to the Swiss Federal Archives after a longer gap than the usual 30 years to ensure high levels of confidentiality apply to the investigation, which has generated huge public interest.
The investigation will focus on the activities of the Swiss government, financial regulator and central bank in the run-up to the emergency takeover of Credit Suisse by UBS in March.
The investigation is only the fifth of its kind in the country's modern history and the committee of lawmakers conducting it has sweeping powers to call on the Swiss cabinet, finance ministry and other state bodies.
"After the completion of the investigation, the files shall be handed over to the Federal Archives and shall be subject to an extended protection period of 50 years," the committee said in a strategy paper outlining its communication policy.
The Swiss parliament declined to comment on Saturday after the 50-year requirement was first reported by newspaper Aargauer Zeitung.
The Swiss Society for History raised concerns about the length of time, with its president, Sacha Zala, writing to commission head Isabelle Chassot, a lawmaker from the Swiss upper house of parliament.
“Should researchers want to scientifically investigate the 2023 banking crisis, access to the CS files would be invaluable,” Mr Zala wrote, according to the newspaper.
"Ideally, it should be possible to secure and make accessible the archive after an appropriate protection period has expired and, if necessary, subject to historical research conditions," he added.
The committee held its first regular meeting in Bern on Thursday, where it stressed the confidentiality of its proceedings, which could include interviews with bankers.
"All persons participating in the meetings and the questioning are subject to the duty of secrecy, not only the members of the commission, but also the interviewees themselves," it said.
“Indiscretions complicate the work or damage the credibility of the commission and can have negative consequences for the Swiss financial centre,” the committee added. - Reuters
(c) Copyright Thomson Reuters 2023
ADevilYouKhow
Rhyme Reason
Peak fukkery
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Exclusive: Swiss authorities, banks mull new rules to prevent bank runs -sources
Swiss authorities and lenders, including UBS , are discussing new measures to prevent bank runs after Credit Suisse’s rescue earlier this year, four sources familiar with the matter said, a move that could affect billions in deposits.
www.reuters.com
Exclusive: Swiss authorities, banks mull new rules to prevent bank runs -sources
By Stefania Spezzati, Oliver Hirt and Elisa MartinuzziNovember 2, 202312:48 PM EDTUpdated 8 hours ago
[1/3]A logo of Swiss bank UBS is seen in Zurich, Switzerland March 29, 2023. REUTERS/Denis Balibouse Acquire Licensing Rights
LONDON/ZURICH, Nov 2 (Reuters) - Swiss authorities and lenders, including UBS (UBSG.S), are discussing new measures to prevent bank runs after Credit Suisse’s rescue earlier this year, four sources familiar with the matter said, a move that could affect billions in deposits.
The talks, which have not been previously reported and are part of a broader review of the country's banking rules, are intended for the top Swiss banks and could target mainly their wealth clients, two of the sources said.
Among the measures being discussed is the option to stagger a greater portion of withdrawals over longer periods of time, one of the sources said. Imposing fees on exits is also an alternative being discussed, two of the sources said.
Rewarding clients who tie up their savings for longer with higher interest rates is being debated, one of the sources said.
Discussions are in the early stages, according to two sources. The Swiss National Bank and the Swiss Finance Ministry are part of the conversations with lenders, one source said.
A representative for the finance ministry said that the issue of bank runs is part of an overall evaluation of the too-big-to-fail regulatory framework in Switzerland. The Swiss government is due to publish a report in spring next year, he added.
The SNB said the review of too-big-to-fail rules, which focuses on so-called systemically important banks, is ongoing. The central bank declined to comment on ongoing work.
UBS declined to comment.
Reuters could not determine which other banks were involved in the conversations with Swiss authorities.
In Switzerland, UBS, Raiffeisen Group, Zürcher Kantonalbank and PostFinance are deemed systemically important lenders as their failure could cause serious damage to the country’s economy and financial system.
A spokesperson for PostFinance said it is not involved in the discussions while a spokesperson for ZKB declined to comment. A representative for Raiffeisen did not have an immediate comment.
DEPOSIT RUNS
Earlier this year, some regional U.S. banks and Credit Suisse suffered massive deposit runs, causing some to fail and regulators to intervene to prevent a broader financial crisis.Regulators worldwide have since been grappling with the risk of bank runs, which in the era of digital banking have accelerated in speed.
In the case of Credit Suisse, the Swiss lender suffered unprecedented outflows and came close to a disorderly wind-down in March. Wealth managers tend to have a greater concentration of deposits than some of the retail banking competitors, which emerged as a weakness for the lender.
In the last three months of 2022, the bank, at the time Switzerland's second-largest lender, was hit by 111 billion Swiss francs of outflows. Another 61 billion Swiss francs left in the first quarter, with the wealth unit which caters to affluent clients hit the hardest.
Its near-implosion prompted the SNB to step in with emergency funding and to facilitate its takeover by UBS, making the country's biggest bank even larger.
While it’s early days, the measures under discussion in Switzerland are making some people nervous.
They risk penalizing Swiss banks if they were to be introduced only in Switzerland, one of the sources said.
UBS is trying to attract customers with above-market rates on deposits, Reuters reported in October.
The new rules could dent competitiveness or, in a more extreme scenario, push clients to withdraw their money preemptively, the person added.
Reporting Stefania Spezzati, Oliver Hirt and Elisa Martinuzzi; additional reporting by John O'Donnell; Editing by Paritosh Bansal and Nick Zieminski
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UBS reports higher-than-forecast Q3 loss of $785 mln
UBS Group on Tuesday reported a loss of $785 million attributable to shareholders in the third quarter, higher than the expected loss of $444 million forecast by analysts in a company-provided poll.
www.reuters.com
UBS reports higher-than-forecast Q3 loss of $785 mln
ReutersNovember 7, 20236:36 AM EST
Updated 2 days ago
People walk past the headquarters of Swiss bank UBS in Zurich April 30, 2013. REUTERS/Arnd Wiegmann/File Photo Acquire Licensing Rights
ZURICH, Nov 7 (Reuters) - UBS Group (UBSG.S) on Tuesday reported a loss of $785 million attributable to shareholders in the third quarter, higher than the expected loss of $444 million forecast by analysts in a company-provided poll.
Reporting by Noele Illien, editing by Rachel More
Hood Critic
The Power Circle
Looks like it's fake.
Fillerguy
Veteran
I work at UBS, fake news. A competitor is fukking with the news today, trying to induce panic on Black Friday