On Monday, Switzerland is witnessing a major economic event that the government is closely monitoring, which is the completion of the UBS acquisition of its former competitor, Credit Suisse, which faced the risk of collapse on March 15 following the collapse of three US regional banks. The merger process will be technically and politically complex, and will lead to a giant bank unlike any bank known to Switzerland, and it is expected that thousands of jobs will be lost due to its duplication.
Complete bank “UPS” On Monday, the acquisition of former rival Credit Suisse launched a massive merger that is raising concerns and being watched closely by customers, employees and political leaders in Switzerland.
UBS CEO Sergio Ermotti warned that the coming months will be “difficult”, and said that they will be accompanied by a “wave” of difficult decisions, especially with regard to employment.
The country’s most prominent bank, UBS, was forced into the merger to prevent the collapse of rival Credit Suisse.
He has been preparing for the operation since mid-March and has an idea of what he will keep and what he will sell or close, but “what he can do” was limited before the merger was completed, according to Vontobel financial analyst Andreas Vendetti.
It will be a technically and politically complex process, and it will lead to a giant bank unlike any bank known to Switzerland, and it is expected that thousands of jobs will be lost due to its duplication.
The story of the collapse of Credit Suisse
Credit Suisse faced the threat of collapse when its share prices fell more than 30 percent during the March 15 trading session, following the collapse of three US regional banks.
The Swiss government, central bank and financial regulators then stepped in and forced UBS to launch a $3.25 billion takeover.
The deal, announced on March 19, includes guarantees for UPS in the event of any negative surprises in Credit Suisse’s files.
And UBS signed a guarantee contract with the Swiss government on Friday that could amount to nine billion Swiss francs ($8.85 billion) if losses exceed five billion francs.
Analyst at Swissquote Bank Ipek Ozkardskaya said that “preserving talent” will be one of the biggest challenges in light of the increasing number of employees leaving due to fears related to job cuts.
For its part, the Swiss government and the central bank released cash of 259 billion Swiss francs to facilitate the acquisition.