Media reports say UBS AG is set to impose tight restrictions on Credit Suisse bankers.
Citing people with knowledge of the matter, the Financial Times (FT) reported on Sunday (June 12) that UBS AG sets ‘red lines’ for Credit Suisse staff as it completes takeover. It is reportedly set to impose tight restrictions on Credit Suisse bankers, including a ban on new customers from high-risk countries and on complex financial products.
Bloomberg News reported on Saturday (June 11) that the emergency takeover of Credit Suisse by UBS will close on Monday, June 13.
The FT report says UBS has come up with a list of nearly two dozen "red lines" that prohibit Credit Suisse staff from a range of activities, which include taking on customers from countries such as Libya, Russia, Sudan and Venezuela and launching new products without approval from UBS managers.
Ukrainian politicians and state-owned enterprises will also be blocked to prevent potential money laundering, the report said.
Belarus, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan and a number of other countries are also on the list of the “banned” countries.
Reuters says the Swiss government agreed on Friday (June 10) to guarantee up to 9 billion Swiss francs (US$9.96 billion) of losses UBS may incur from the sale of its rival's assets beyond 5 billion francs the lender is due to cover itself.
UBS, Switzerland's leading bank, was forced into the marriage on March 19 to prevent its closest domestic rival from going under — which potentially could have had catastrophic consequences for the global financial system.
UBS completed the acquisition of Credit Suisse on June 11. Credit Suisse Group AG has been merged into UBS Group AG and the combined entity will operate as a consolidated banking group.
At the end of 2022, the two giants had around 120,000 employees worldwide, including 37,000 in Switzerland.
Credit Suisse reportedly risked collapse when its share price plunged more than 30 percent during trading on March 15, after three US regional lenders folded. A series of scandals had undermined confidence in the 167-year-old bank.
