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☆ UBS chief draws up Credit Suisse leadership shortlist, FT reports
▼ + stars: | 2023-05-06 | by ( ) www.reuters.com time to read: +1 min

May 6 (Reuters) - UBS Group AG's (UBSG.S) Chief Executive Sergio Ermotti has shortlisted the Credit Suisse Group AG's (CSGN.S) executives most likely to become part of the management team, the Financial times reported on Saturday, citing people familiar with the plans. Dixit Joshi, chief financial officer, Francesca McDonagh, chief operating officer, and André Helfenstein, head of the Swiss business, are most likely to remain a part of the Swiss bank's executive team, the report said. Credit Suisse declined to comment on the report. UBS did not immediately respond to Reuters' request for a comment. ($1 = 0.8910 Swiss francs)Reporting by Rahat Sandhu in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ UBS chief draws up Credit Suisse leadership shortlist, FT says
▼ + stars: | 2023-05-06 | by ( ) www.reuters.com time to read: +1 min

☆ UBS wary of buying Credit Suisse in February, wanted more analysis - SEC filing
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +1 min

ZURICH, May 3 (Reuters) - UBS (UBSG.S) said it had concluded in February that buying its stricken rival Credit Suisse (CSGN.S) was not desirable, but that it should prepare in case the lender encountered "serious financial difficulties". In a filing to the U.S. Securities and Exchange Commission, UBS said it had been considering the potential impact of a Credit Suisse deal since December. In March, UBS agreed to take over Credit Suisse (CSGN.S) for 3 billion Swiss francs ($3.37 billion) and said it would assume up to 5 billion ($5.61 billion) in losses, as part of a rescue that is backed by as much as 250 billion Swiss francs of state support. UBS said in the filing that the merger still required approval from regulators in the European Union, India, Japan, Mexico and South Korea. Last month, UBS secured temporary approval from European Union antitrust regulators, while the U.S. Federal Reserve approved the UBS Group's acquisition of Credit Suisse's U.S. subsidiaries.

Companies UBS Group AG FollowMay 1 (Reuters) - The U.S. Supreme Court on Monday agreed to examine how difficult it should be for financial whistleblowers to win retaliation lawsuits against their employers as the justices took up a long-running case involving Switzerland's UBS Group AG (UBSG.S). A Supreme Court ruling in favor of UBS could significantly curtail financial whistleblower lawsuits because it is often difficult for plaintiffs to prove a defendant's motives. Robert Herbst, a lawyer for Murray, said the 2nd Circuit decision ignored the text of the whistleblower law, adding that he looked forward to arguing the case before the Supreme Court. A UBS spokesperson said, "We expect the court will uphold the 2nd Circuit's decision." The Supreme Court is due to hear the case in its next term, which begins in October.

☆ Nomura shares drop more than 7% after quarterly profit tanks
▼ + stars: | 2023-04-27 | by ( ) www.reuters.com time to read: +1 min

TOKYO, April 27 (Reuters) - Nomura Holdings Inc (8604.T) shares dropped more than 7% early on Thursday after Japan's biggest brokerage posted a sharp fall in quarterly net profit as worries about a global banking crisis roiled markets and hit its investment banking business. Moody's Japan senior analyst Tomoya Suzuki also blamed rapidly rising interest rates around the world and geopolitical tensions for dampened investor sentiment. "Moody’s has a negative outlook on Nomura Holdings’ rating, reflecting structural challenges to the company's profitability in the domestic retail segment," Suzuki wrong in a report. Nomura's wholesale division, which houses its investment banking and trading businesses, sank into the red for the second consecutive quarter with a pre-tax loss of 14.2 billion yen ($106.24 million). Its shares were down 7.5% in early trade, marking the biggest daily fall since March 2021.

REUTERS/Marco BelloNEW YORK, April 27 (Reuters) - JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon sent a clear message to employees this month: get back to the office. The largest U.S. lender's employees inundated an internal messaging forum with criticism after its operating committee posted an edict entitled, "The importance of being together." JPMorgan first called employees back to the office on a rotational basis in mid-2021 after months of pandemic shutdowns. "We don't want to punish everybody because of that, but people agreed to do three days a week; we expect three days a week." Many branch employees, building staff and other workers have reported to offices throughout the pandemic without the option to work remotely.

HONG KONG, April 26 (Reuters) - Standard Chartered PLC (StanChart) (STAN.L) on Wednesday said first-quarter profit jumped 21%, beating expectations, as rising interest rates buoyed income from its cash management and retail banking businesses. The earnings update showed how rising central bank rates have boosted revenue, as StanChart charged borrowers more interest while not passing all of the increase to depositors. StanChart, which earns most of its revenue in Asia, said January-March statutory pretax profit reached $1.81 billion. That compared with $1.49 billion a year earlier and the $1.43 billion average of 14 analyst estimates compiled by the bank. The bank said it saw signs of stabilisation in China's troubled commercial real estate market, with no increase in credit impairment from the previous quarter.

☆ StanChart profit swells on soaring global interest rates
▼ + stars: | 2023-04-26 | by ( ) www.cnbc.com time to read: +2 min

Standard Chartered PLC (StanChart) on Wednesday said first-quarter pretax profit jumped 21%, beating expectations, as rising interest rates buoyed cash management income and retail product sales for the emerging markets-focused lender. The earnings update showed how rising central bank rates have boosted revenue, as StanChart charged borrowers more interest while not passing all of the increase to depositors. StanChart, which earns most of its revenue in Asia, said January-March statutory pretax profit reached $1.81 billion. The bank said income in its corporate cash management business tripled due to "strong pricing discipline and passthrough rate management". Retail banking income rose 53%, propelled by deposit income which also tripled to $771 million.

☆ Credit Suisse Details Painful Final Days Before Rescue
▼ + stars: | 2023-04-24 | by ( Margot Patrick | ) www.wsj.com time to read: 1 min

Photo: Hannah McKay/ReutersCredit Suisse Group AG gave a glimpse of its chaotic final weeks before a rescue last month by UBS Group AG in a first-quarter earnings report that showed revenue diving and customers rushing to pull deposits. The Swiss bank lost more than $2 billion from its businesses in the first quarter, but posted a large net profit because of the benefit of writing off $17 billion in bonds. Customers withdrew around $75 billion in deposits, in a run that the bank says has moderated since the UBS deal announcement on March 19. Revenue fell across its investment-banking and wealth-management arms and its domestic bank.

☆ Credit Suisse Investors Challenge Switzerland’s $17 Billion Bond Write-Down
▼ + stars: | 2023-04-21 | by ( Alexander Saeedy | Margot Patrick | ) www.wsj.com time to read: 1 min

Credit Suisse Group AG bondholders have launched a legal challenge in Switzerland against regulators’ decision to write down $17 billion in securities as part of UBS Group AG’s rescue of the troubled bank last month. Bondholders holding about 4.5 billion Swiss francs ($5 billion) of Credit Suisse’s canceled debt want the decision to write down their bonds revoked or amended, according to an outline of their appeal made in a Swiss administrative court and reviewed by The Wall Street Journal. The bondholders are alleging the total write-down was disproportionately punitive to them and violated their property rights, according to the summary of the legal filing.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

WASHINGTON, April 14 (Reuters) - The Federal Reserve's Board of Governors on Friday said it has approved UBS Group AG's acquisition of the U.S. subsidiaries of Credit Suisse, clearing another major hurdle for the completion of the Swiss-brokered rescue deal. UBS has committed to give the U.S. central bank an implementation plan for combining its U.S. business and operations with those of Credit Suisse within three months of consummating the deal, the Fed's Board said in a statement. UBS agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), a fraction of its earlier market value. UBS has said it expects the deal to create a business with more than $5 trillion in total invested assets. Under the takeover deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in compensation terms, will receive $3.23 billion.

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations as it earned more from borrowers paying higher interest on loans. Citi earned $1.86 per share in the first quarter, beating analysts' average estimate of $1.67, according to Refinitiv data. The bank's investment in services to corporations resulted in 31% growth in revenues in treasury and trade solutions. INVESTMENT BANKING BACK? Mason expressed cautious optimism about a recovery in investment banking.

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations on Friday as it earned more from borrowers paying higher interest on loans. While its net interest income rose 23% to $13.3 billion, Citi also set aside $241 million to cover potential loan losses, from $138 million a year earlier. Net income rose 7% to $4.6 billion, or $2.19 per share, in the three months to March 31 from $4.3 billion, or $2.02 per share, a year earlier. The banking sector was jolted by the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value. Analysts expect an economic slowdown to curb demand for loans and depress net interest margins (NIM) across the industry in the coming quarters.

☆ Citigroup profit beats estimates on higher interest income from loans
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +2 min

April 14 (Reuters) - Citigroup Inc's (C.N) first-quarter profit beat Wall Street expectations on Friday as it earned more from borrowers paying higher interest on loans, benefiting from a tighter monetary policy by the Federal Reserve. The banking sector was jolted by the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value. Its loans also fell marginally to $652 billion, while its net interest income rose 23% to $13.3 billion. Analysts expect an economic slowdown to curb demand for loans and depress net interest margins (NIM) across the industry in the coming quarters. Net income rose 7% to $4.6 billion, or $2.19 per share, in the three months to March 31 from $4.3 billion, or $2.02, a year earlier.

☆ BlackRock sells asset-backed bonds from Credit Suisse's books, Bloomberg reports
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +1 min

April 13 (Reuters) - Credit Suisse Group AG (CSGN.S) has hired BlackRock Inc (BLK.N) to help sell a portfolio of structured bonds for the Swiss bank, Bloomberg News reported on Thursday. BlackRock's Financial Markets Advisory group has been selling off securities over the last two weeks, including pieces of collateralized loan obligations, commercial mortgage bonds and niche asset-backed debt, Bloomberg reported, citing people with knowledge of the matter. BlackRock declined to comment, while Credit Suisse did not immediately respond to a Reuters request for comment. The move comes after the Swiss lender was acquired by UBS Group AG (UBSG.S) in a state-brokered deal. Reporting by Shivani Tanna in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ UBS considers retaining Credit Suisse's India unit - Bloomberg News
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: 1 min

April 12 (Reuters) - UBS Group AG (UBSG.S) is considering retaining Credit Suisse Group AG's (CSGN.S) private banking unit in India after the emergency rescue of its smaller rival last month, Bloomberg News reported on Wednesday citing people familiar with the matter. Reporting by Kanjyik Ghosh in Bengaluru; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

☆ UBS faces investors after shotgun Credit Suisse takeover
▼ + stars: | 2023-04-05 | by ( Noele Illien | ) www.reuters.com time to read: +2 min

Last month, Swiss authorities announced that UBS would buy Credit Suisse in a shotgun merger to stem further banking turmoil after the smaller lender had come to the brink of collapse. After a run on deposits, the Swiss government had turned to UBS, which agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion), while the Alpine state put up more than 200 billion francs of support and guarantees. Now, the bank is looking at how to navigate the mammoth task of integrating Credit Suisse, the success of which Switzerland depends on, without undermining its strengths. On Tuesday, Reuters also reported that the Bank of England had approved UBS' takeover of Credit Suisse in Britain, a key market for the Swiss lenders racing to close the rescue deal. UBS also secured a temporary green light from European Union antitrust regulators to complete its acquisition of Credit Suisse, but will still have to request clearance under EU merger rules, the European Commission said.

[1/2] A logo of the Swiss bank UBS is seen on the Paradeplatz in Zurich, Switzerland March 21, 2023. Representatives for UBS and Credit Suisse declined to comment. The longer the deal takes to close, the harder it could be for Credit Suisse to hold on to its business. The United Kingdom, where Credit Suisse has $60 billion of risk-weighted assets primarily in its investment banking division, is one of its biggest markets outside of Switzerland. John Glen, chief secretary to the UK Treasury, said last week he did not have any immediate concerns about the execution of Switzerland's Credit Suisse rescue by UBS.

☆ Swiss Prosecutors Probe State-Backed Credit Suisse Takeover by UBS
▼ + stars: | 2023-04-02 | by ( Patricia Kowsmann | ) www.wsj.com time to read: 1 min

UBS is paying more than $3 billion for Credit Suisse. Switzerland’s prosecutors are probing the government-orchestrated takeover of Credit Suisse Group AG by rival UBS Group AG. The federal prosecutor has reached out to national and local authorities and “issued investigation orders” to analyze and identify if any criminal offenses took place under the deal, which also involved the government, the financial regulator, Finma, and Switzerland’s central bank, a spokeswoman said in a statement.

March 30 (Reuters) - Citigroup Inc (C.N) hired Andy Sieg to lead its global wealth arm, the lender said on Thursday, from Bank of America Corp (BAC.N), where he led the Merrill Wealth Management unit. Two years ago, Citigroup unified its various wealth businesses into a single organization led by Jim O'Donnell that included its private bank and personal wealth management divisions. Fraser signaled the bank's intention to become a global leader in wealth management at its investor day last year. "This is a fantastic opportunity to build a leading wealth management business at the world's most global bank at a time of massive wealth creation," he said in a statement. Sieg's departure prompted the appointments of Lindsay Hans and Eric Schimpf as co-leads of Merrill Wealth Management, Bank of America said in a separate statement.

And that has the impact of postponing some announcements," said Anu Aiyengar, global head of M&A at JPMorgan Chase & Co (JPM.N). M&A volumes dropped 44% to $282.7 billion in the U.S. and 70% to $81.87 billion in Europe. Reuters Graphics"Having a well-functioning financing market is a critical ingredient for M&A. Global M&A volumes in Q1 2023LACK OF CONFIDENCEThe depressed market valuations also presented an opportunity for prominent activist investors to launch new proxy fights, with dealmakers anticipating a boost to M&A volumes from activist campaigns in the coming quarters. "Inflationary pressures aren't subsiding as fast as people expected; there's still a lot of geopolitical tensions, and in a lot of ways, the disruption in the financing market is intensifying," Langston said.

March 30 (Reuters) - Citigroup Inc (C.N) on Thursday it has hired Andy Sieg to lead its global wealth arm from Bank of America Corp (BAC.N), where he led the Merrill Wealth management unit. Two years ago, Citigroup unified its various wealth businesses into a single wealth management organization, which was led by Jim O'Donnell and included the Citi Private Bank and Citi Personal Wealth Management. At its investor day last year, Fraser signaled the bank's intention to become a global leader in wealth management. Sieg's departure led to the appointments of Lindsay Hans and Eric Schimpf as co-leads of Merrill Wealth Management, Bank of America said in a separate statement. Sieg joined Merrill Lynch in 1992 and had served as Merrill president since 2017.

☆ Credit Suisse withdraws certain proposals to AGM following UBS merger
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Credit Suisse Group AG (CSGN.S) said on Wednesday it has withdrawn certain proposals to the 2023 annual general meeting following the lender's recent merger with UBS Group AG (UBSG.S). The withdrawn proposals includes the discharge of the board of directors and executive board for the financial year 2022. It also withdrew a proposal for a one-time deferred share-based transformation award for the executive board, the lender said in a statement. UBS this month agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) in stock and agreed to assume up to 5 billion francs ($5.4 billion) in losses, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. Reporting by Anirudh Saligrama in Bengaluru;Our Standards: The Thomson Reuters Trust Principles.

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