UBS will be able to start the integration of Credit Suisse after completing the purchase of the rival on Monday, a task that will be closely watched by Swiss clients, employees and political and economic leaders.
“We have completed the legal acquisition of Credit Suisse,” declared the main Swiss bank, in an open letter published in several newspapers. The new entity begins “a new historical chapter.”
The acquisition creates a mega bank the likes of which Switzerland has never seen. A dimension that worries politicians. In Switzerland alone, thousands of jobs can be lost due to duplication of tasks.
On Friday, UBS boss Sergio Ermotti warned that the coming months are “likely to be turbulent” as integration will lead to “waves” of tough decisions, particularly with regard to employment.
To avoid the bankruptcy of the second largest Swiss bank, UBS agreed on March 19 to buy Credit Suisse, under pressure from the authorities, for three billion Swiss francs (the equivalent in euros).
The country’s second largest bank had not withstood the loss of confidence, after several big scandals and poor risk management.
The formalization of this union opens a great project for UBS, which, in the open letter, underlined the strong corporate culture and the conservative approach to risk, making it clear that it will not make “any compromise”.
The two institutions currently have 120,000 employees worldwide, 37,000 of whom are in Switzerland.
Source: TSF
