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☆ Credit Suisse appoints investment banking management committee -memo
▼ + stars: | 2023-06-29 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +1 min

NEW YORK, June 29 (Reuters) - Credit Suisse Group AG on Thursday appointed an investment banking management committee to oversee its integration with UBS Group AG (UBSG.S), according to a memo seen by Reuters. UBS completed its emergency takeover of embattled rival Credit Suisse in June, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet and overseeing more than $5 trillion in assets. Michael Ebert, head of Credit Suisse for the investment bank, will lead markets within the committee. Onu Odim will oversee investment banking risk management and the chief operating officers for markets and capital markets will be Olivier Charhon and Amy Clack, respectively. The committee will be supported by other executives such as investment banking CFO Tony Bullman and Chief Risk Officer David Krauss.

Persons: Michael Ebert, Marc, Michael Furber, Tan, Onu Odim, Olivier Charhon, Amy Clack, Tony Bullman, David Krauss, Tatiana Bautzer, Chris Reese, Mark Porter Organizations: YORK, Credit Suisse Group AG, UBS Group AG, Reuters, UBS, Credit Suisse, Capital, Kuan, Thomson Locations: Americas, APAC, Asia

☆ UBS faces big penalty over Credit Suisse's Archegos failings -FT
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +2 min

UBS has asked the U.S. Federal Reserve, the Swiss Financial Market Supervisory Authority and UK's Prudential Regulation Authority to publish their findings and announce any penalties jointly at the end of July, FT reported. The Swiss Financial Market Supervisory Authority does not have the power to fine financial institutions, president Marlene Amstad said in May. The New York-based firm's demise caused billions of dollars in losses for Credit Suisse. UBS completed its emergency takeover of embattled rival Credit Suisse last week, forging a Swiss banking and wealth management giant with a $1.6 trillion balance sheet. It set aside $4 billion for potential lawsuits on the Credit Suisse deal in May, according to a presentation.

Persons: Marlene Amstad, Archegos, Chandni Shah, Lisa Shumaker, Jonathan Oatis Organizations: UBS Group AG, Archegos, Swiss, Financial, UBS, U.S . Federal Reserve, Swiss Financial Market, Authority, Prudential, U.S . Federal, Suisse, Credit Suisse, U.S, Fed, Thomson Locations: U.S, New York, Bengaluru

☆ UBS’s $10 bln state guarantee is a useful fantasy
▼ + stars: | 2023-06-07 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, June 7 (Reuters Breakingviews) - UBS (UBSG.S) and the Swiss government have negotiated a state backstop that neither side wants to use. The scheme, designed to sweeten the Credit Suisse (CSGN.S) rescue, would see the government cover $10 billion of losses on former Credit Suisse assets after UBS swallows the first $6 billion. One option could be for the state to guarantee only a limited subset of former Credit Suisse assets – just the ones that UBS plans to get rid of, for example, like fixed-income derivatives. The government could also insist on dividend or buyback restrictions if the Swiss bank ever taps the scheme. The guarantee would only kick in after UBS has swallowed 5 billion Swiss francs ($6 billion) of losses.

Persons: Sergio Ermotti, Karin Keller, Sutter, Ermotti, that’s, ”, Neil Unmack, Oliver Taslic Organizations: Reuters, UBS, Swiss, bank’s, Credit Suisse, Switzerland’s Social, –, RBC, AG, U.S . Securities, Exchange Commission, Thomson Locations: Swiss

☆ UBS expects agreement on Credit Suisse loss guarantee by June 7 - SEC filing
▼ + stars: | 2023-06-06 | by ( ) www.reuters.com time to read: +1 min

ZURICH, June 6 (Reuters) - UBS (UBSG.S) expects to finalize its agreement with the Swiss government to cover up to 9 billion Swiss francs ($9.92 billion) in losses from its emergency takeover of Credit Suisse (CSGN.S) by June 7, the Swiss bank said in a regulatory filing published on Tuesday. "UBS Group AG expects that the Loss Protection Agreement will be finalized by June 7, 2023," a filing with the U.S. Securities and Exchange Commission said. Under the takeover of Credit Suisse, orchestrated by Swiss authorities, Bern agreed to shoulder up to 9 billion francs in losses after UBS agreed to cover the first 5 billion francs in losses. The government agreement is one of the last steps UBS needs to take before it can officially close the acquisition of its rival. The SEC document, which was dated June 5, reiterated that the UBS expects to complete the deal in the second quarter of 2023.

Persons: Noele Illien, John Revill Organizations: UBS, Credit Suisse, AG, U.S . Securities, Exchange Commission, Swiss, SEC, Thomson Locations: ZURICH, Swiss, Bern

The moves add to a trio of Barclays U.S. investment bankers that UBS announced it hired last month. Many Credit Suisse bankers are based in the United States. These bankers follow Barclays ex-colleagues Marco Valla, Jeff Hinton and Kurt Anthony, whose moves to UBS were announced in April. Sources told Reuters last month that UBS plans to retain only a small number of Credit Suisse senior bankers with strong client relationships. At Barclays, Braham was global chair of investment banking for technology, while Hardegree served as vice chair and head of technology M&A.

Persons: Laurence Braham, Richard Hardegree, Richard Casavechia, Ozzie Ramos, Jason Williams, Neil Meyer, Ken Tittle, Marco Valla, Jeff Hinton, Kurt Anthony, dealmaker Michael Klein, Braham, Hardegree, Casavechia, Ramos, Meyer, Tittle, Milana Vinn, Anirban Sen, Greg Roumeliotis, Lisa Shumaker Organizations: YORK, Barclays Plc, UBS Group AG, Barclays U.S, UBS, Credit, Group, Credit Suisse, Barclays, Reuters, Broadcom, VMware Inc, Thomson Locations: United States, Swiss, Zurich, New York

June 5 (Reuters) - UBS Group AG (UBSG.S) is looking to retain more than 100 Credit Suisse Group AG (CSGN.S) investment bankers across Asia as part of a plan to shore up talent in markets where its rival has a stronger presence, a source with direct knowledge of the matter said. Bloomberg said that UBS's retention target of more than 100 bankers did not include China. UBS and Credit Suisse declined to comment on the report. Credit Suisse also declined to say how many investment bankers it currently employs in Asia. Reuters last month reported that hundreds of Credit Suisse employees are resigning each week in a sign of the uncertainty gripping the lender while it is being taken over by its larger rival.

Persons: Sergio Ermotti, Yana Gaur, Jamie Freed, Kirsten Donovan Organizations: UBS Group AG, Credit Suisse Group AG, Suisse's, Reuters, Bloomberg News, Bloomberg, UBS, Credit Suisse, Thomson Locations: Asia, South Korea, Thailand, Vietnam, India, China, Bengaluru

☆ UBS to retain more than 100 Credit Suisse bankers in Asia -Bloomberg News
▼ + stars: | 2023-06-05 | by ( ) www.reuters.com time to read: +1 min

June 4 (Reuters) - UBS Group AG (UBSG.S) is looking to retain more than 100 Credit Suisse Group AG (CSGN.S) investment bankers across Asia, as the Swiss banking giant plans to shore up talent in markets where its rival has a stronger presence, Bloomberg News reported on Sunday. Bloomberg said that Switzerland's biggest bank's retention target of more than 100 bankers did not include China. It has held talks with a few bankers in China, but the final number being kept will depend on discussions with regulators, the report added. UBS did not immediately respond to a request for comment on the report, while Credit Suisse declined to comment. Reuters last month reported that hundreds of Credit Suisse employees are resigning each week in a sign of uncertainty gripping the lender while it is being taken over by its larger rival.

Persons: Sergio Ermotti, Mrinmay Dey, Jamie Freed Organizations: UBS Group AG, Credit Suisse Group AG, Bloomberg, Suisse's, UBS, Credit Suisse, Reuters, Thomson Locations: Asia, Swiss, South Korea, Thailand, Vietnam, India, China, Bengaluru

☆ UBS expects to seal Credit Suisse takeover as early as June 12
▼ + stars: | 2023-06-05 | by ( John Revill | ) www.reuters.com time to read: +5 min

"UBS expects to complete the acquisition of Credit Suisse as early as 12 June 2023. At that time, Credit Suisse Group AG will be merged into UBS Group AG," it said. UBS shares were indicated 1.1% higher in premarket activity in Switzerland, while Credit Suisse shares were up 0.7%. SIX said in a separate statement Credit Suisse shares would be delisted on June 13 at the earliest. Under the all-share takeover, Credit Suisse shareholders will receive one UBS share for every 22.48 shares they held.

Persons: Zuercher, Michael Klien, Sergio Ermotti, Ermotti, John Revill, Noele, Tomasz Janowski Organizations: Suisse, UBS, Credit Suisse, U.S . Securities, Exchange Commission, Credit Suisse Group AG, UBS Group AG, Reuters, Swiss, SIX Swiss Exchange, New York Stock Exchange, SIX, Financial Times, Thomson Locations: premarket ZURICH, Swiss, Switzerland, Credit

Venkatakrishnan's intervention underscores the pressure that the British bank is under to protect its U.S. investment banking franchise. Venkatakrishnan promised during the meeting to invest in the investment banking business to boost morale, the sources said. Miller left Barclays to join Jefferies last month, while Barclays only announced a new role for Astier this week, naming him global head of financial sponsors. Still, the exodus that Venkatakrishnan and other Barclays executives have been trying to stem has continued apace. But it was its consumer, cards and payments division, rather than investment banking, that led the charge.

Persons: C.S, Venkatakrishnan, dealmakers, Cathal Deasy, Morgan Stanley, Taylor Wright, Marco Valla, Deasy, John Miller, Jean, Francois Astier, Miller, Jefferies, Jim Rossman, Christopher Ludwig, Pete Contrucci, Evan Rothenberg, Daniel Kerstein, Contrucci, Rothenberg, Kerstein, Milana Vinn, Abigail Summerville, David Carnevali, Svea Herbst, Bayliss, Anirban Sen, Greg Roumeliotis, Christopher Cushing Organizations: YORK, Barclays, Citigroup Inc, UBS Group AG, Jefferies Financial Group Inc, Reuters, Credit Suisse Group AG, UBS, Lazard Ltd, Credit Suisse, Svea, Thomson Locations: Americas, Europe, Middle East, Africa, United States, New York, Rhode Island

☆ Logs show Fed's Powell in whirlwind of meetings during March banking turmoil
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

That was five days before UBS agreed to buy Credit Suisse in a deal engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The bank failed March 10 and a smaller bank, Signature Bank, was taken over by banking regulators on March 12. The schedule shows Powell working two weeks straight from that point. Meetings were scheduled through both of the following weekends to come up with backstops to prevent the turmoil from cascading into a system-wide crisis with wider economic fallout. The pace was reminiscent of his schedule in March 2020, when the onset of the coronavirus pandemic forced the Fed onto a crisis footing.

Persons: Jerome Powell, Powell, Ralph Hamers, Dan Burns, Chizu Organizations: UBS Group AG, Swiss, Credit Suisse, Fed, UBS, Silicon, Bank, Signature Bank, Treasury, Office, Currency, Federal Deposit Insurance Corp, Federal Reserve, Thomson Locations: U.S, Republic

☆ Why wealthy Americans love UBS, the secretive Swiss banking giant
▼ + stars: | 2023-06-02 | by ( Carlos Waters | In Carloswaters | ) www.cnbc.com time to read: +2 min

With its $3.2 billion acquisition of Credit Suisse, UBS is poised to climb the ranks of global mega banks. Additionally, U.S. senators claim that Credit Suisse maintained accounts linked to Nazi clients as recently as 2020. The Swiss National Bank pledged over $100 billion in liquidity support to broker UBS's rapid takeover of Credit Suisse. In the deal, Credit Suisse shareholders expect to trade in 22.48 shares for 1 UBS share. "By and large, what the Swiss government mostly did is impose losses on creditors and shareholders of Credit Suisse," said Véron.

Persons: Nicolas Véron Organizations: Credit Suisse, UBS, Experts, Swiss, Bankers, Peterson Institute for International Economics, Washington , D.C, Swiss National Bank, AG Locations: Switzerland, United States, Singapore, New York, Swiss, Washington ,, Brussels, U.S

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow UBS became Switzerland's mega bankUBS Group AG, with over $5 trillion in invested assets, is Switzerland's largest bank. The company has a sprawling international footprint, with over half of its wealth management assets coming from clients in the United States. Experts believe these customers are drawn to strict bank-client laws in Switzerland. In recent decades, scandals have embroiled both UBS and its latest acquisition, Credit Suisse. After regulators quickly approved of the merger, fresh litigation risks have come to light.

Organizations: UBS, UBS Group AG, Experts, Credit Suisse Locations: United States, Switzerland

☆ Credit Suisse staff prepare to sue Swiss regulator over lost AT1 bonuses-FT
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

May 22 (Reuters) - Credit Suisse AG (CSGN.S) staff are preparing to sue the Swiss financial regulator over $400 million of bonuses that were canceled after the troubled lender's rescue by UBS Group AG (UBSG.S), the Financial Times reported on Monday. Quinn Emanuel and Pallas, law firms which are already suing Swiss regulator Finma on behalf of investors who owned AT1 bonds, have received multiple requests from senior managers at Credit Suisse to take legal action on their behalf, the report said. Credit Suisse declined to comment, while Law firms Quinn Emanuel, Pallas and Finma did not immediately respond to Reuters' request for comment. Following this, Switzerland's Federal Council instructed Credit Suisse to cancel or reduce all outstanding bonus payments for the top three levels of management and examine whether those already paid can be recovered. read moreUnder Swiss banking law, the Federal Council can impose bonus-related measures on a systemically important bank if it received state aid from federal funds.

Shareholders of Credit Suisse and UBS were not granted a vote on the deal that was sealed over one weekend in March. Officials for QIA, UBS, the Swiss finance ministry and Credit Suisse declined to comment. QIA's investment in Credit Suisse dates back to the global financial crisis of 2008. The sovereign wealth fund had increased its stake in Credit Suisse to just under 7%, only trailing largest shareholder Saudi National Bank's roughly 10% stake, according to a January filing. Among them, Middle Eastern backers which own more than 20% of Credit Suisse face the largest hit.

☆ UBS says it was rushed into unwanted Credit Suisse rescue merger
▼ + stars: | 2023-05-17 | by ( Kane Wu | ) www.reuters.com time to read: +3 min

The wave of deposit outflows and a major share-price drop prompted Switzerland's central bank on March 15 to offer Credit Suisse liquidity assistance. The next day, UBS and Credit Suisse signed a confidentiality agreement upon which the former began due diligence, the UBS filing showed. By then, Credit Suisse was experiencing deposit and net asset outflows at levels substantially exceeding rates of the July-September quarter, UBS said. In early December, UBS management undertook a preliminary assessment of the consequences of a Credit Suisse purchase, which it presented to the Strategy Committee on Dec. 19. From December to mid-January, Credit Suisse executives had also been discussing with the government about its options including a merger with UBS, the UBS filing showed.

☆ Morning Bid: Are we there yet? Market holds breath for debt ceiling deal
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Ankur BanerjeeNervousness in the market over the looming U.S. debt ceiling deadline prevailed through the Asian hours and will remain the main focus for investors as Europe wakes up. McCarthy, the speaker of the House of Representatives, told reporters the two sides remained far apart on an agreement. But he said, "It is possible to get a deal by the end of the week. European markets are set for a lower open, with traders waiting for April inflation data for the eurozone. Japan's economy emerged from recession and grew faster than expected in the first quarter as a post-pandemic consumption rebound offset global headwind.

☆ UBS flags $17 bln hit from Credit Suisse takeover
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +3 min

May 16 (Reuters) - UBS Group AG (UBSG.S) expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG (CSGN.S), the bank said in a presentation early on Wednesday as it prepares to complete the rescue of its struggling Swiss rival. The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds. Switzerland's government is providing a guarantee of up to 9 billion francs for further potential losses on a clearly defined part of Credit Suisse portfolio. Credit Suisse faces certain restrictions in its ability to do business until its acquisition by UBS is completed, according to a regulatory filing on Tuesday. Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies – UBS AG and Credit Suisse AG, UBS said last week.

☆ Credit Suisse faces restrictions on business till deal closure
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

May 16 (Reuters) - Credit Suisse Group AG faces certain restrictions in its ability to do business until its acquisition by rival UBS Group AG (UBSG.S) is completed, according to a regulatory filing on Tuesday. In certain cases, without prior UBS approval, Credit Suisse cannot grant a new credit facility or credit line in an amount exceeding 100 million Swiss francs ($113 million) to investment grade borrowers or more than 50 million francs to non-investment grade borrowers, the filing showed. In addition, Credit Suisse cannot undertake any capital expenditure of more than 10 million francs or enter into certain contracts worth more than 3 million francs per year. The filing also showed Credit Suisse cannot order any "material amendments" to its employee terms and conditions, including remuneration and pension entitlements, while the merger is underway. UBS estimated a "negative goodwill" of $34.8 billion from its acquisition of Credit Suisse.

☆ UBS sets aside $4 bln for potential lawsuits on Credit Suisse deal
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +1 min

May 16 (Reuters) - Swiss bank UBS Group AG (UBSG.S) has set aside $4 billion in provisions for potential litigation and regulatory issues stemming from its takeover of Credit Suisse (CSGN.S), the bank said in a filing on Tuesday, as it prepared to complete the rescue of its Swiss rival. UBS estimated a "negative goodwill" of $34.8 billion from its acquisition of Credit Suisse (CSGN.S). The transaction's massive one-off gain, a result of "negative goodwill" attached to the 167-year-old bank that has struggled for years with scandals and losses, will allow UBS to absorb one-off losses related to the takeover. Since UBS has yet to gain full insight in Credit Suisse's books, the numbers may change in coming months. Reporting by Manya Saini in Bengaluru Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, May 16 (Reuters) - Ed Wehle, a senior Barclays Plc (BARC.L) technology banker, has resigned to join U.S. rival Citigroup Inc (C.N) in New York, according to an internal memo seen by Reuters, adding to an exodus of top investment bankers from the London-based bank. An investment banking veteran of nearly three decades, Wehle will join Citigroup as its global head of technology services, Mark Keene, Citigroup's global head of technology investment banking, wrote in the memo to employees on Tuesday. "Technology services complements Citi’s unparalleled global client position, and Ed will work closely with partners in Asia, EMEA and Latin America," said Philip Drury, global head of technology & communications banking, capital markets & advisory at Citi. He was previously head of global technology services banking at Barclays, which he had joined in 2018 from Deutsche Bank AG (DBKGn.DE). Reuters reported on Monday that at least seven top Barclays technology, media and telecommunications (TMT) bankers have resigned to join UBS Group AG (UBSG.S) in the U.S. in the last few days.

☆ UBS flags $17 billion hit from Credit Suisse takeover
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +3 min

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway. Credit Suisse also cannot undertake capital expenditure of more than 10 million francs or enter into certain contracts worth more than 3 million francs per year. The filing shows Credit Suisse cannot order any "material amendments" to its employee terms and conditions, including remuneration and pension entitlements, till deal closure. The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds. Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies – UBS AG and Credit Suisse AG, UBS said last week.

NEW YORK, May 15 (Reuters) - At least seven top Barclays Plc (BARC.L) bankers have resigned to join to UBS Group AG (UBSG.S) in the United States in the last few days, people familiar with the matter said. The moves add to a trio of Barclays investment bankers that UBS announced internally it hired last month. Many Credit Suisse bankers are based in the United States. UBS has hired Laurence Braham, Richard Hardegree, Richard Casavechia, Ozzie Ramos, Jason Williams, Neil Meyer and Ken Tittle from Barclays, the sources said. These bankers follow Barclays ex-colleagues Marco Valla, Jeff Hinton and Kurt Anthony, whose moves to UBS were announced in April.

The moves add to a trio of Barclays U.S. investment bankers that UBS announced it hired last month. Many Credit Suisse bankers are based in the United States. Sources told Reuters last month that UBS plans to retain only a small number of Credit Suisse senior bankers with strong client relationships. At Barclays, Braham was global chair of investment banking for technology, while Hardegree served as vice chair and head of technology M&A. Williams, Meyer and Tittle were managing directors in the investment banking group.

Besides Koerner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Commenting on Koerner's future role, UBS said Koerner would be responsible for Credit Suisse's operational continuity and client focus, while supporting its integration. Credit Suisse executive board members will report to both their relevant UBS executive board member and Koerner. Reuters reported last week that options under consideration for that business include a sale or an initial public offering of Credit Suisse's domestic unit. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry," Ermotti said in the statement.

☆ UBS says Credit Suisse CEO Ulrich Koerner will join its board
▼ + stars: | 2023-05-09 | by ( ) edition.cnn.com time to read: +4 min

Besides Körner, who spent over a decade at UBS before returning to Credit Suisse in 2021, UBS CEO Sergio Ermotti largely leaned on UBS executives in pulling together his new team. Some media had speculated that a number of Credit Suisse bankers would take up senior roles at the new group. Credit Suisse executive board members will report to both their relevant UBS executive board member and Körner. “This is a pivotal moment for UBS, Credit Suisse and the entire banking industry,” Ermotti said in the statement Tuesday. Zuercher Kantonalbank said this meant there would be initially no big changes for the current Credit Suisse management.

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