UBS - UBS closes Credit Suisse takeover reportedly sets strict curbs for staff

2023-06-12 04:51:41 ET

Right on schedule, UBS ( NYSE: UBS ) has completed its $3.25B deal to buy troubled rival Credit Suisse ( CS ), close to two months after the deal was brokered by the Swiss government to avoid the smaller bank's bankruptcy.

Pending further integration, UBS ( UBS ) will manage two separate banks – UBS AG and Credit Suisse AG. UBS' ( UBS ) board and executive team will oversee the consolidated group.

UBS ( UBS ) is also imposing strict curbs on Credit Suisse ( CS ) bankers to address 11 financial and 12 non-financial risks, the Financial Times reported citing unnamed sources.

These include a ban on new clients from high-risk countries such as Afghanistan and Russia, as well as launching new products without UBS ( UBS ) managers' approval. Ukrainian politicians and state-run entities will also be blocked.

UBS ( UBS ) expects its CET1 capital ratio to be ~14% in Q2 and to remain around that level throughout the year. Credit Suisse's ( CS ) operating losses and restructuring charges are expected to be offset by reductions in risk-weighted assets.

The last trading day of Credit Suisse shares on the SIX Swiss Exchange, which were up 1.2% at the time of writing, is June 12. Credit Suisse ( CS ) will no longer be traded on NYSE.

More on UBS-Credit Suisse deal

• Credit Suisse seeks buyers for China brokerage unit
• UBS, Swiss govt ink loss protection pact for CS deal
• Credit Suisse repays $113B government-backed lifeline
• UBS Acquisition Of Credit Suisse: More Problems Ahead

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