the mega bank and the job hub – Corriere.it
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The operation
We have completed the legal acquisition of Credit Suisse, UBS said in an open letter published today in the NZZ. In the letter, signed by the CEO Sergio Ermotti and by the president Colm Kelleher, the bank with three keys states that the goal is to guarantee stability. Credit Suisse banking services will continue to be provided as usual and without interruption. It is expected that the shares and Ads (American Depositary Receipts) of the former second largest Swiss bank, born from the Schweizerische Kreditanstalt founded in 1856, will be delisted from the New York and Zurich Stock Exchanges. CS shareholders will receive one UBS share for every 22.48 shares held. The legal closing on Monday (June 12, ed.) is the next important step, while we try to give you the answers you need as soon as possible, said the CEO of Credit Suisse, Ulrich Koerner, to his employees who were still waiting for clarity about their future.
A mega bank
The integration of the former rival will not be easy, and starting today Swiss customers, employees and political leaders will follow it closely. The coming months are likely to be bumpy, Ermotti warned, adding that integration will be accompanied by waves of difficult decisions, especially on employment. Starting today, UBS will be able to start being proactive – Vontobel financial analyst Andreas Venditti told AFP -. UBS has been preparing since mid-March and already has an idea of what it wants to keep, close or sell, but for now they are limited in what they can do until the merger is sealed, Venditti said.
The merger of the two largest Swiss banks will be technically and politically complex and create a megabank never seen before in Switzerland.
The jobs
Thousands of jobs could be lost due to duplication. But according to Thomas Jordan, president of the Swiss National Bank, there was no other solution. Of course, a pity that there is only one (large bank) left. But I’m sure that if the UBS takeover hadn’t succeeded, there would have been an international financial crisis, he said in an interview with the weekly Sonntagszeitung.
Credit Suisse risked collapse when its share price plunged more than 30% during trading on March 15 after the bankruptcy of three US regional lenders. The Swiss government, central bank and financial regulators intervened and forced UBS into a $3.25 billion takeover announced on March 19. The deal includes guarantees for UBS in case there are nasty surprises in Credit Suisse’s closets. UBS and the Swiss government signed the guarantee agreement on Friday June 9, which can go up to nine billion Swiss francs ($9.85 billion) if losses exceed five billion francs.
The other nodes
Many questions about the merger remain unanswered, but Venditti said the picture should clear up after the second-quarter financial results. UBS has pushed back the publication date by more than a month to August 31st. Ipek Ozkardeskaya, an analyst at Swissquote Bank, said retaining talent will be one of the biggest challenges, as staff departures multiply amid downsizing fears. Politically, financial regulators Finma should make sure they protect competition, which could prompt an eventual spin-off of some business units, Ozkardeskaya told AFP. The government and central bank have unblocked some 259 billion Swiss francs of liquid assets to facilitate the zkardeskaya takeover.
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