As part of its upcoming acquisition, UBS plans to place limitations on Credit Suisse bankers, such as a prohibition on hiring clients from high-risk nations.
According to an internal memo obtained by Bloomberg News, the emergency takeover of the bank by UBS is expected to end on Monday, 12 June, according to Credit Suisse CEO Ulrich Koerner, who made the announcement on Saturday. As the takeover nears its conclusion, Koerner expressed in the memo his hope for a brand-new and positive future.
As one of the last steps in their upcoming acquisition, UBS AG is expected to place stringent limits on Credit Suisse Group AG bankers, according to the Financial Times.
The list of limitations, which consists of almost twenty “red lines,” tries to reduce risk for UBS. Credit Suisse bankers are not permitted to sign up new clients from high-risk nations, which is one noticeable restriction. In addition, loans secured by high-value assets including yachts, ships, and real estate worth more than $60 million would need clearance, according to the Financial Times. Credit Suisse workers will now need permission from UBS managers before introducing new products.
The projected Monday closing of the UBS acquisition was announced by Credit Suisse Chief Koerner in a note to staff members, as reported by Bloomberg News. Both Credit Suisse and UBS, however, chose not to comment on the memo.
With the acquisition of Credit Suisse by UBS, a strong European banking titan will be born. A rough time for the sector has come to an end as a result of Credit Suisse’s considerable struggles.
According to the agreement between the two banks, Credit Suisse shareholders would receive one UBS share for every 22.8 outstanding shares they own. The deal, which the Swiss government supported in order to prevent the smaller bank from going under, will have significant effects on the worldwide wealth management sector. The resulting megabank will be twice as big as the Swiss economy and will dwarf all other Swiss lenders.
