UBS has unveiled its plan to integrate its workforce following the Credit Suisse acquisition. To achieve its cost-cutting goals, the bank will implement layoffs in five stages throughout 2024. The first wave is expected to begin in June, with subsequent waves following in august, September, October, and November.

UBS to slash costs with layoffs after Credit Suisse merger

Swiss banking giant UBS&nbsp;has reported its first quarterly loss in almost six years, mainly attributed to the ongoing process of integrating Credit Suisse into its operations, The Guardian reported on Tuesday.

According to the report, the bank revealed a net loss of $785 million for the three months ending in September, nearly double the $444 million forecasted by analysts. UBS cited approximately $2 billion in expenses related to the rescue and integration of Credit Suisse as the primary factor behind the loss.

The integration process has involved significant job cuts to reduce costs and eliminate duplicated roles across the combined entity. UBS confirmed that it had reduced over 4,000 jobs during the third quarter, contributing to a total of 13,000 job losses this year.

However, the bank highlighted its ability to attract new customer investments in its wealth management business. UBS managed to win back clients who had withdrawn their funds from Credit Suisse earlier in the year due to concerns about its stability.

UBS remains committed to the integration process, which is expected to create a stronger and more resilient financial institution. The integration aims to streamline operations and tap into the profitable aspects of Credit Suisse while winding down less favourable segments.

The merger between UBS and Credit Suisse, executed under tight time constraints, incurred an estimated $17 billion in costs, including expenses related to litigation, regulatory matters, and asset and liability adjustments.

Despite the associated risks, UBS sees Credit Suisse's acquisition for 3 billion Swiss francs as a strategic business opportunity.&nbsp;

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Swiss banking giant UBS has reported its first quarterly loss in almost six years, mainly attributed to the ongoing process of integrating Credit Suisse into its operations, The Guardian reported on Tuesday.

Swiss banking giant UBS has reported its first quarterly loss in almost six years, mainly attributed to the ongoing process of integrating Credit Suisse into its operations, The Guardian reported on Tuesday. According to the report, the bank revealed a net loss of $785 million for the three months ending in September, nearly double the $444 million forecasted by analysts. UBS cited approximately $2 billion in expenses related to the rescue and integration of Credit Suisse as the primary factor behind the loss. The integration process has involved significant job cuts to reduce costs and eliminate duplicated roles across the combined entity. UBS confirmed that it had reduced over 4,000 jobs during the third quarter, contributing to a total of 13,000 job losses this year. However, the bank highlighted its ability to attract new customer investments in its wealth management business. UBS managed to win back clients who had withdrawn their funds from Credit Suisse earlier in the year due to concerns about its stability. UBS remains committed to the integration process, which is expected to create a stronger and more resilient financial institution. The integration aims to streamline operations and tap into the profitable aspects of Credit Suisse while winding down less favourable segments. The merger between UBS and Credit Suisse, executed under tight time constraints, incurred an estimated $17 billion in costs, including expenses related to litigation, regulatory matters, and asset and liability adjustments. Despite the associated risks, UBS sees Credit Suisse's acquisition for 3 billion Swiss francs as a strategic business opportunity. WATCH WION LIVE HERE

UBS posts first quarterly loss in six years due to Credit Suisse integration

The US Department of Justice (DOJ) has turned up the heat on Credit Suisse Group and UBS over suspicions that the compliance failures allowed Russian clients to evade sanctions, according to a Bloomberg report.&nbsp;

Citing sources familiar with the matter, the report stated that the DOJ had briefed US-based lawyers for&nbsp;UBS about Credit Suisse’s alleged exposure to sanctions violations since UBS acquired its smaller rival in June.&nbsp;

"The probe is still at an early stage and may not result in charges or a settlement.&nbsp;Still, it comes at a delicate time for the Zurich-based bank, which is absorbing thousands of employees from Credit Suisse," the sources said.&nbsp;

The DOJ has requested information about how banks handled the accounts of sanctioned clients but refrained from seeking interviews with the executives or the staff just yet.&nbsp;

Notably, Credit Suisse in its&nbsp;latest financial report admitted that its officers in&nbsp;Britain, Netherlands, France and Belgium, had&nbsp;been contacted by law enforcement officials as part of the probe.&nbsp;

"Credit Suisse has conducted a review of these issues, the UK and French aspects of which have been closed, and is continuing to cooperate with the authorities," the bank said in its report.

After the news of DoJ stepping up its operations made headlines, UBS shares fell sharply on Wednesday. According to a Reuters report, trading was halted temporarily in UBS shares as they fell nearly eight per cent, before recovering to trade at 3.4 per cent lower.&nbsp;

<a href="https://www.wionews.com/videos/ubs-to-begin-layoffs-at-credit-suisse-next-month-609494">Watch |&nbsp;UBS to begin layoffs at Credit Suisse next month</a>

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<h2>What happened with Credit Suisse and UBS?</h2>

After reports came in that Credit Suisse had collapsed earlier this year, the Swiss government stepped up and arranged a takeover by the UBS Group for $3.25 billion. The takeover was aimed at preventing economic turmoil from spreading throughout the country and beyond.&nbsp;

Although&nbsp;UBS&nbsp;completed the takeover in June, it still needs approvals from regulators in markets where both the banks operate for the legal completion of the first rescue of a global bank since the 2008 financial crisis.

<a href="https://www.wionews.com/business-economy/over-17-billion-worth-of-bonds-become-zero-after-credit-suisse-takeover-by-ubs-574224" target="_blank">Also read | Over $17 billion worth of bonds become zero after Credit Suisse takeover by UBS</a>

UBS has identified at least four countries, including India and South Korea where it is having a tough time getting regulatory approvals, an internal documents accessed by Reuters has revealed.&nbsp;

Prepared by&nbsp;UBS&nbsp;after a global review to assess the timeline of regulatory approvals necessary for the integration of&nbsp;Credit&nbsp;Suisse&nbsp;to complete, the document said uncooperative regulators could put transactions such as the Swiss bank deal at risk.

(With inputs from agencies)

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The US Department of Justice (DOJ) has turned up the heat on Credit Suisse Group and UBS over suspicions that the compliance failures allowed Russian clients to evade sanctions, according to a Bloomberg report.

The US Department of Justice (DOJ) has turned up the heat on Credit Suisse Group and UBS over suspicions that the compliance failures allowed Russian clients to evade sanctions, according to a Bloomberg report. Citing sources familiar with the matter, the report stated that the DOJ had briefed US-based lawyers for UBS about Credit Suisse’s alleged exposure to sanctions violations since UBS acquired its smaller rival in June. "The probe is still at an early stage and may not result in charges or a settlement. Still, it comes at a delicate time for the Zurich-based bank, which is absorbing thousands of employees from Credit Suisse," the sources said. The DOJ has requested information about how banks handled the accounts of sanctioned clients but refrained from seeking interviews with the executives or the staff just yet. Notably, Credit Suisse in its latest financial report admitted that its officers in Britain, Netherlands, France and Belgium, had been contacted by law enforcement officials as part of the probe. "Credit Suisse has conducted a review of these issues, the UK and French aspects of which have been closed, and is continuing to cooperate with the authorities," the bank said in its report. After the news of DoJ stepping up its operations made headlines, UBS shares fell sharply on Wednesday. According to a Reuters report, trading was halted temporarily in UBS shares as they fell nearly eight per cent, before recovering to trade at 3.4 per cent lower. Watch | UBS to begin layoffs at Credit Suisse next month × What happened with Credit Suisse and UBS? After reports came in that Credit Suisse had collapsed earlier this year, the Swiss government stepped up and arranged a takeover by the UBS Group for $3.25 billion. The takeover was aimed at preventing economic turmoil from spreading throughout the country and beyond. Although UBS completed the takeover in June, it still needs approvals from regulators in markets where both the banks operate for the legal completion of the first rescue of a global bank since the 2008 financial crisis. Also read | Over $17 billion worth of bonds become zero after Credit Suisse takeover by UBS UBS has identified at least four countries, including India and South Korea where it is having a tough time getting regulatory approvals, an internal documents accessed by Reuters has revealed. Prepared by UBS after a global review to assess the timeline of regulatory approvals necessary for the integration of Credit Suisse to complete, the document said uncooperative regulators could put transactions such as the Swiss bank deal at risk. (With inputs from agencies) WATCH WION LIVE HERE:

US: DOJ opens probe into UBS, Credit Suisse over alleged Russian sanctions evasion

Ajay Singh, the chairman of SpiceJet, was strongly reprimanded by India’s Supreme Court on Monday, ordering him to pay $5,000,000 and $1,000,000 to Credit Suisse in addition to an installment due on September 22, The Economic Times reported.

The court also warned&nbsp;to send Singh to Tihar jail&nbsp;if the amount&nbsp;wasn’t paid.

“We have to move to the next drastic step. We are not worried if you shut down. Enough of this dilly-dally business… you will have to abide by the consent terms. We are not bothered even if you die. It is too much,” The Economic Times quoted the bench comprising Justices Vikram Nath and Ahsanuddin Amanullah as saying during the hearing.

The court also made it mandatory for Singh to attend the court on every hearing.

Court records indicated that Credit Suisse had&nbsp;requested India’s highest court in March to begin contempt proceedings against Singh and SpiceJet for “a willful and intentional disobedience” of court orders and refusal to pay dues totaling several million dollars as per a settlement between the two parties.

Due to a legal battle between Credit Suisse and SpiceJet over Credit Suisse’s supposed $24 million in unpaid debts, the Madras High Court ordered that the airline be shut down in 2021. Following an appeal against the high court’s decision, the top court decided to halt the winding-up process so that both sides may negotiate a settlement.

Both parties notified the Supreme Court that a settlement had been reached in August 2022.

However, Credit Suisse then launched a contempt lawsuit against managing director Ajay Singh in March, claiming that the airline and company secretary had failed to make payments as required by the conditions of the settlement.

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Ajay Singh, the chairman of SpiceJet, was strongly reprimanded by India’s Supreme Court on Monday, ordering him to pay $5,000,000 and $1,000,000 to Credit Suisse in addition to an installment due on September 22, The Economic Times reported.

Ajay Singh, the chairman of SpiceJet, was strongly reprimanded by India’s Supreme Court on Monday, ordering him to pay $5,000,000 and $1,000,000 to Credit Suisse in addition to an installment due on September 22, The Economic Times reported. The court also warned to send Singh to Tihar jail if the amount wasn’t paid. “We have to move to the next drastic step. We are not worried if you shut down. Enough of this dilly-dally business… you will have to abide by the consent terms. We are not bothered even if you die. It is too much,” The Economic Times quoted the bench comprising Justices Vikram Nath and Ahsanuddin Amanullah as saying during the hearing. The court also made it mandatory for Singh to attend the court on every hearing. Court records indicated that Credit Suisse had requested India’s highest court in March to begin contempt proceedings against Singh and SpiceJet for “a willful and intentional disobedience” of court orders and refusal to pay dues totaling several million dollars as per a settlement between the two parties. Due to a legal battle between Credit Suisse and SpiceJet over Credit Suisse’s supposed $24 million in unpaid debts, the Madras High Court ordered that the airline be shut down in 2021. Following an appeal against the high court’s decision, the top court decided to halt the winding-up process so that both sides may negotiate a settlement. Both parties notified the Supreme Court that a settlement had been reached in August 2022. However, Credit Suisse then launched a contempt lawsuit against managing director Ajay Singh in March, claiming that the airline and company secretary had failed to make payments as required by the conditions of the settlement. WATCH WION LIVE HERE

SpiceJet-Credit Suisse case: India’s Supreme Court presents Ajay Singh final chance to repay loans

Swiss banking giant UBS has set its course on a significant overhaul, announcing the elimination of 3,000 jobs as part of a sweeping cost-cutting strategy. The decision comes as UBS grapples with the integration of credit Suisse, which witnessed a substantial withdrawal of funds as concerned customers sought to secure their investments.

UBS plans 3,000 job cuts after Credit Suisse merger

After acquiring its struggling rival Credit Suisse, UBS announced on Thursday that it will eliminate 3,000 jobs in Switzerland alone as part of a $10 billion cost-cutting program.

The newly-expanded bank giant’s intention to eliminate one in every twelve Swiss positions provides a sense of the magnitude of the restructuring as UBS struggles to merge a rival that collapsed after terrified customers withdrew billions from their accounts.

The majority of savings are anticipated to come from personnel reductions, and analysts predict that between 30,000 and 35,000 jobs might be lost internationally.

The layoffs come after the largest wealth manager in the world chose to absorb Credit Suisse's local branch, which was its only successful division last year, rather than split it off, as UBS also thought about doing.

“Our analysis clearly shows that a full integration is the best outcome for UBS ... and the Swiss economy,” UBS Chief Executive Sergio Ermotti told Reuters.

3,000 Swiss positions would be lost, according to a memo from Ermotti to the workforce, although more workers are likely to leave on their own, perhaps through retirement. Credit Suisse had previously reported that 8,000 individuals left the bank in recent months, before Thursday’s layoffs, so the actual number could be far higher.

In contrast to an earlier estimate of $8 billion by 2027, the UBS forecast more than $10 billion in cost reductions by the end of 2026.

The cuts, disclosed alongside the first financial figures published since the acquisition, led to UBS shares rising six per cent in late afternoon trade, reaching highs not seen since 2008.

UBS, which has a market value of 77 billion Swiss francs, has also expressed optimism about its near-term prospects. Rich clients’ attitudes are improving, and the firm anticipates that better financial markets will increase the amount it earns through fees.

However, there is controversy in Switzerland over the choice to acquire Credit Suisse’s local unit. Swiss pension funds and foundations that owned stock in both banks, represented by proxy adviser Ethos, said that a spinoff would have prevented “a major systemic risk for Switzerland, an important negative impact on employment, and issues for the fair competition.”

Ethos has supported a class-action lawsuit that is suing UBS for the buyout at a lower price.

(With inputs from Reuters)

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After acquiring its struggling rival Credit Suisse, UBS announced on Thursday that it will eliminate 3,000 jobs in Switzerland alone as part of a $10 billion cost-cutting program.

After acquiring its struggling rival Credit Suisse, UBS announced on Thursday that it will eliminate 3,000 jobs in Switzerland alone as part of a $10 billion cost-cutting program. The newly-expanded bank giant’s intention to eliminate one in every twelve Swiss positions provides a sense of the magnitude of the restructuring as UBS struggles to merge a rival that collapsed after terrified customers withdrew billions from their accounts. The majority of savings are anticipated to come from personnel reductions, and analysts predict that between 30,000 and 35,000 jobs might be lost internationally. The layoffs come after the largest wealth manager in the world chose to absorb Credit Suisse's local branch, which was its only successful division last year, rather than split it off, as UBS also thought about doing. “Our analysis clearly shows that a full integration is the best outcome for UBS ... and the Swiss economy,” UBS Chief Executive Sergio Ermotti told Reuters. 3,000 Swiss positions would be lost, according to a memo from Ermotti to the workforce, although more workers are likely to leave on their own, perhaps through retirement. Credit Suisse had previously reported that 8,000 individuals left the bank in recent months, before Thursday’s layoffs, so the actual number could be far higher. In contrast to an earlier estimate of $8 billion by 2027, the UBS forecast more than $10 billion in cost reductions by the end of 2026. The cuts, disclosed alongside the first financial figures published since the acquisition, led to UBS shares rising six per cent in late afternoon trade, reaching highs not seen since 2008. UBS, which has a market value of 77 billion Swiss francs, has also expressed optimism about its near-term prospects. Rich clients’ attitudes are improving, and the firm anticipates that better financial markets will increase the amount it earns through fees. However, there is controversy in Switzerland over the choice to acquire Credit Suisse’s local unit. Swiss pension funds and foundations that owned stock in both banks, represented by proxy adviser Ethos, said that a spinoff would have prevented “a major systemic risk for Switzerland, an important negative impact on employment, and issues for the fair competition.” Ethos has supported a class-action lawsuit that is suing UBS for the buyout at a lower price. (With inputs from Reuters) WATCH WION LIVE HERE

UBS to cut 3,000 jobs to save costs after taking over Credit Suisse: Report 

After acquiring Credit Suisse, the biggest bank in Switzerland, earlier this year, UBS Group AG reported its first quarterly earnings on Thursday, reporting a profit of $28.88 billion for the second quarter of this fiscal year, according to a report by Business Today. In March, UBS purchased Credit Suisse for just 3 billion Swiss francs ($3.4 billion), saving it from bankruptcy.

Due to the deal’s recent closure in June, the results for UBS as a whole only contain earnings for one month of Credit Suisse.

According to UBS, the $28.93 billion in negative goodwill on the Credit Suisse acquisition was the main factor in the result. Underlying earnings before tax, which excludes acquisition costs, negative goodwill, and integration-related expenditures, was $1.1 billion.

Negative goodwill indicates the fair market value of assets acquired as part of a merger that is higher than the purchase price.

&nbsp;“Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history,” Business Today quoted UBS CEO Sergio Ermotti as saying.

When it agreed to acquire Credit Suisse in March, the Swiss government imposed two agreements on UBS that it said it had terminated: a 9 billion Swiss franc ($10.24 billion) loss protection agreement and a 100 billion Swiss franc public liquidity backstop.

After acquiring Credit Suisse, the biggest bank in Switzerland, earlier this year, UBS Group AG reported its first quarterly earnings on Thursday, reporting a profit of $28.

After acquiring Credit Suisse, the biggest bank in Switzerland, earlier this year, UBS Group AG reported its first quarterly earnings on Thursday, reporting a profit of $28.88 billion for the second quarter of this fiscal year, according to a report by Business Today. In March, UBS purchased Credit Suisse for just 3 billion Swiss francs ($3.4 billion), saving it from bankruptcy. Due to the deal’s recent closure in June, the results for UBS as a whole only contain earnings for one month of Credit Suisse. According to UBS, the $28.93 billion in negative goodwill on the Credit Suisse acquisition was the main factor in the result. Underlying earnings before tax, which excludes acquisition costs, negative goodwill, and integration-related expenditures, was $1.1 billion. Negative goodwill indicates the fair market value of assets acquired as part of a merger that is higher than the purchase price. “Two and a half months since closing the Credit Suisse acquisition, we are wasting no time in delivering value for all our stakeholders from one of the biggest and most complex bank mergers in history,” Business Today quoted UBS CEO Sergio Ermotti as saying. When it agreed to acquire Credit Suisse in March, the Swiss government imposed two agreements on UBS that it said it had terminated: a 9 billion Swiss franc ($10.24 billion) loss protection agreement and a 100 billion Swiss franc public liquidity backstop.

UBS reports a $29 billion second quarter profit after Credit Suisse takeover

For the very first time since the 2008 financial crisis, global household wealth plunged as the interest rates ascended and inflation remained tenaciously elevated.

However, the numbers project a slightly hopeful narrative.&nbsp;

According to the annual Credit Suisse and UBS global wealth report, the grand total of all the personal wealth all over the globe dropped 2.4% to $454.4 trillion.

Considerably that was because of losses in stock and bond markets, which disproportionately impact more affluent people.

However, global median wealth, which is a more significant indicator that depicts how a typical person is progressing, actually ascended 3 per&nbsp;cent in the year 2022.&nbsp;

The exhaustion of wealth faced by the wealthier made the world lose about 3.5 million millionaires.

As per the UBS annual wealth report, that came out on Tuesday (August 15), the number of adults, who were in possession of assets worth more than $1 million descended from 62.9 million at the end of 2021 to 59.4 million at the end of 2022.

According to the Swiss bank, global wealth was affected by high inflation and the descent of numerous currencies against the dollar.

In the United States, the number of millionaires fell by 1.8 million to 22.7 million. However, there still are more millionaires in the United States than in any other country.

China is second on the list with 6.2 million millionaires.

In spite of the drop, the report revealed that there were four times as many dollar millionaires as there were at the turn of the century.

In the United Kingdom, the number of millionaires dropped by 440,000 to 2.6 million, which is the third largest fall after Japan.

In Japan, it dropped from 3.2 million to 2.6 million. Australia witnessed the fourth largest decline, with 360,000 people losing the status of millionaires, bringing down the total to 1.8 million.

Paul Donovan, the chief economist at UBS, said: “The global economy is experiencing a period of astonishing economic alteration. The sweeping changes of the fourth industrial revolution represent the most dramatic structural upheaval in 250 years. Revolutions, it turns out, are revolutionary, social as well as economic relationships will be challenged by this process.”

As per another research for the Bloomberg billionaires index, the most affluent 500 people in the world lost a combined wealth of $1.4 trillion in 2022.

(With inputs from the agencies) 
 
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For the very first time since the 2008 financial crisis, global household wealth plunged as the interest rates ascended and inflation remained tenaciously elevated.

For the very first time since the 2008 financial crisis, global household wealth plunged as the interest rates ascended and inflation remained tenaciously elevated. However, the numbers project a slightly hopeful narrative. According to the annual Credit Suisse and UBS global wealth report, the grand total of all the personal wealth all over the globe dropped 2.4% to $454.4 trillion. Considerably that was because of losses in stock and bond markets, which disproportionately impact more affluent people. However, global median wealth, which is a more significant indicator that depicts how a typical person is progressing, actually ascended 3 per cent in the year 2022. The exhaustion of wealth faced by the wealthier made the world lose about 3.5 million millionaires. As per the UBS annual wealth report, that came out on Tuesday (August 15), the number of adults, who were in possession of assets worth more than $1 million descended from 62.9 million at the end of 2021 to 59.4 million at the end of 2022. According to the Swiss bank, global wealth was affected by high inflation and the descent of numerous currencies against the dollar. In the United States, the number of millionaires fell by 1.8 million to 22.7 million. However, there still are more millionaires in the United States than in any other country. China is second on the list with 6.2 million millionaires. In spite of the drop, the report revealed that there were four times as many dollar millionaires as there were at the turn of the century. In the United Kingdom, the number of millionaires dropped by 440,000 to 2.6 million, which is the third largest fall after Japan. In Japan, it dropped from 3.2 million to 2.6 million. Australia witnessed the fourth largest decline, with 360,000 people losing the status of millionaires, bringing down the total to 1.8 million. Paul Donovan, the chief economist at UBS, said: “The global economy is experiencing a period of astonishing economic alteration. The sweeping changes of the fourth industrial revolution represent the most dramatic structural upheaval in 250 years. Revolutions, it turns out, are revolutionary, social as well as economic relationships will be challenged by this process.” As per another research for the Bloomberg billionaires index, the most affluent 500 people in the world lost a combined wealth of $1.4 trillion in 2022. (With inputs from the agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Over 3.5 million people lost 'dollar millionaire' status last year: Report

Credit Suisse's legacy reports suggest the once mighty investment bank is now facing its final days as UBS takes the reins in a historic deal.

UBS begins layoffs at Credit Suisse's NY office

Swiss banking giant UBS Group has laid off employees from Credit Suisse investment bank in New York, according to a source cited by Reuters.

The scale of layoffs and the businesses affected were not specified by the source.

Apart from the layoffs in New York, UBS is also in the process of closing Credit Suisse’s investment bank’s office in Houston, Reuters sources added.&nbsp;

Sources further told Reuters that the New York office will now handle the oil industry on behalf of the Houston office. But no clarity was provided on the number of workers that have been impacted by the layoffs.

UBS and Credit Suisse refused to make comments on the matter.

The latest layoffs come following UBS’s government-backed acquisition of Credit Suisse in June. Ever since the acquisition was announced,&nbsp;UBS has been clear that the layoffs will lower the risk of Credit Suisse’s investment bank.

After the emergency acquisition of Credit Suisse, UBS’s total employee count increased to nearly 120,000.&nbsp;

A Bloomberg report said that the bank has planned three rounds of cuts for 2023, with the July layoffs being the first and the other two could be carried out in September and October.

The Swiss banking giant hopes to save $6 billion in staff costs over the coming years through the job cuts.&nbsp;

(With inputs from agencies)

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Swiss banking giant UBS Group has laid off employees from Credit Suisse investment bank in New York, according to a source cited by Reuters. The scale of layoffs and the businesses affected were not specified by the source.

Swiss banking giant UBS Group has laid off employees from Credit Suisse investment bank in New York, according to a source cited by Reuters. The scale of layoffs and the businesses affected were not specified by the source. Apart from the layoffs in New York, UBS is also in the process of closing Credit Suisse’s investment bank’s office in Houston, Reuters sources added. Sources further told Reuters that the New York office will now handle the oil industry on behalf of the Houston office. But no clarity was provided on the number of workers that have been impacted by the layoffs. UBS and Credit Suisse refused to make comments on the matter. The latest layoffs come following UBS’s government-backed acquisition of Credit Suisse in June. Ever since the acquisition was announced, UBS has been clear that the layoffs will lower the risk of Credit Suisse’s investment bank. After the emergency acquisition of Credit Suisse, UBS’s total employee count increased to nearly 120,000. A Bloomberg report said that the bank has planned three rounds of cuts for 2023, with the July layoffs being the first and the other two could be carried out in September and October. The Swiss banking giant hopes to save $6 billion in staff costs over the coming years through the job cuts. (With inputs from agencies) WATCH WION LIVE HERE

UBS lays off Credit Suisse investment bank staff, closes Houston office  

Weeks after UBS took over its swiss rival Credit Suisse, the Swiss banking giant has opposed an initial public offering for Credit Suisse's domestic unit. A swiss media report cited UBS CEO Sergio Ermotti as saying that such a move may strengthen UBS' international competitors.

UBS opposes listing Credit Suisse's Swiss operations

Just weeks after Swiss banking giant UBS took over rival Credit Suisse, it is all set to axe over half of Credit Suisse's workforce. Media reports suggest that bankers, traders, and support staff in Credit Suisse's investment bank in London, new york, and in parts of Asia are expected to bear the brunt.

UBS to begin layoffs at Credit Suisse next month

UBS Group is preparing to reduce more than half of the Credit Suisse Group's workforce following the emergency takeover of the bank. The impact of these job cuts is expected to be felt primarily by bankers, traders, and support staff in Credit Suisse's investment bank located in London, New York, and certain parts of Asia.

<h2>When will the job cuts happen?</h2>

As per a report in Fortune, staff has been told to expect the cuts in three rounds, with the first round projected to take place by the end of July, followed by two additional rounds tentatively planned for September and October.

UBS, which recently completed the acquisition and now has a combined workforce of approximately 120,000 employees, aims to save around $6 billion in staff costs over the coming years.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/credit-suisse-ordered-by-court-to-pay-926-million-to-ex-pm-of-georgia-596934">Another jolt to Credit Suisse, court orders it to pay $926 million to Georgian ex-PM</a>

Quoting sources, Fortune reports that UBS plans to reduce the total combined headcount by roughly 30 per cent, or 35,000 individuals.

This estimate aligns with an approximate reduction of 30,000 predicted this month by analysts at Redburn. Credit Suisse's current headcount stands at approximately 45,000 employees.

<h2>How will the job cuts affect the global financial sector?</h2>

The reduction in staff at Credit Suisse is expected to exacerbate an already challenging year for global financial sector jobs, as other major banks such as Morgan Stanley and Goldman Sachs have also announced substantial cuts.

Watch |&nbsp;Credit Suisse is now a part of UBS | World Business Watch

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UBS had earlier signalled its intention to significantly scale back the size of Credit Suisse's investment bank, which experienced a $5.5 billion loss due to the Archegos Capital Management scandal in 2021.&nbsp;

Earlier this month, the company's chief executive Sergio Ermotti warned that the coming months will likely be "bumpy". He said that the UBS, and Credit Suisse merger will demand "waves" of difficult decisions, including regarding employment.

Although UBS initially planned to retain the top 20 per cent of dealmakers, particularly those focused on technology, media, and telecoms, many high-performing bankers have already left or been hired by rival institutions.&nbsp;

Also read |&nbsp;<a data-ctorig="https://www.wionews.com/world/silicon-valley-bank-to-cut-500-jobs-says-new-owner-report-596360" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/silicon-valley-bank-to-cut-500-jobs-says-new-owner-report-596360&amp;sa=U&amp;ved=2ahUKEwial-atieX_AhXmTmwGHahpC0gQFnoECAAQAg&amp;usg=AOvVaw1cP6ReS7Br9qR4j8hcpMqi" dir="ltr" href="https://www.wionews.com/world/silicon-valley-bank-to-cut-500-jobs-says-new-owner-report-596360" target="_blank">Silicon Valley Bank to cut 500 jobs, says new owner: Report</a>

UBS as per the Fortune report aims to retain most of Credit Suisse's private bankers, particularly in the Asia-Pacific region, where a few hundred private bankers are expected to join UBS's existing team of over 1,200.&nbsp;

As per the report, a source revealed that the company will also need to retain staff responsible for managing Credit Suisse's structured loans to wealthy clients and the equity derivatives books.

<h2>UBS and Credit Suisse integration</h2>

Regarding the Swiss domestic business, UBS reportedly intends to make a decision in the third quarter on whether to fully integrate it with its own Swiss unit, pursue alternative options such as spinning it off or listing it publicly, or adopt another approach.&nbsp;

The fate of the Swiss bank has drawn significant attention. The initial job cuts are likely to exclude roles related to the overlapping areas of the Swiss businesses. However, if the two domestic businesses are merged, it is estimated that up to 10,000 jobs could be eliminated.&nbsp;
(With inputs from agencies)

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UBS Group is preparing to reduce more than half of the Credit Suisse Group's workforce following the emergency takeover of the bank. The impact of these job cuts is expected to be felt primarily by bankers, traders, and support staff in Credit Suisse's investment bank located in London, New York, and certain parts of Asia.

UBS Group is preparing to reduce more than half of the Credit Suisse Group's workforce following the emergency takeover of the bank. The impact of these job cuts is expected to be felt primarily by bankers, traders, and support staff in Credit Suisse's investment bank located in London, New York, and certain parts of Asia. When will the job cuts happen? As per a report in Fortune, staff has been told to expect the cuts in three rounds, with the first round projected to take place by the end of July, followed by two additional rounds tentatively planned for September and October. UBS, which recently completed the acquisition and now has a combined workforce of approximately 120,000 employees, aims to save around $6 billion in staff costs over the coming years. Also read | Another jolt to Credit Suisse, court orders it to pay $926 million to Georgian ex-PM Quoting sources, Fortune reports that UBS plans to reduce the total combined headcount by roughly 30 per cent, or 35,000 individuals. This estimate aligns with an approximate reduction of 30,000 predicted this month by analysts at Redburn. Credit Suisse's current headcount stands at approximately 45,000 employees. How will the job cuts affect the global financial sector? The reduction in staff at Credit Suisse is expected to exacerbate an already challenging year for global financial sector jobs, as other major banks such as Morgan Stanley and Goldman Sachs have also announced substantial cuts. Watch | Credit Suisse is now a part of UBS | World Business Watch UBS had earlier signalled its intention to significantly scale back the size of Credit Suisse's investment bank, which experienced a $5.5 billion loss due to the Archegos Capital Management scandal in 2021. Earlier this month, the company's chief executive Sergio Ermotti warned that the coming months will likely be "bumpy". He said that the UBS, and Credit Suisse merger will demand "waves" of difficult decisions, including regarding employment. Although UBS initially planned to retain the top 20 per cent of dealmakers, particularly those focused on technology, media, and telecoms, many high-performing bankers have already left or been hired by rival institutions. Also read | Silicon Valley Bank to cut 500 jobs, says new owner: Report UBS as per the Fortune report aims to retain most of Credit Suisse's private bankers, particularly in the Asia-Pacific region, where a few hundred private bankers are expected to join UBS's existing team of over 1,200. As per the report, a source revealed that the company will also need to retain staff responsible for managing Credit Suisse's structured loans to wealthy clients and the equity derivatives books. UBS and Credit Suisse integration Regarding the Swiss domestic business, UBS reportedly intends to make a decision in the third quarter on whether to fully integrate it with its own Swiss unit, pursue alternative options such as spinning it off or listing it publicly, or adopt another approach. The fate of the Swiss bank has drawn significant attention. The initial job cuts are likely to exclude roles related to the overlapping areas of the Swiss businesses. However, if the two domestic businesses are merged, it is estimated that up to 10,000 jobs could be eliminated. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

UBS plans to sack 'more than half' or 35,000 Credit Suisse staff: Report

Swiss banking giant UBS has completed its emergency takeover of local rival Credit Suisse. This will make UBS a trillion dollar banking behemoth. The combined group will oversee 5 trillion dollars of assets, which will give UBS a leading position in key markets. the two banks now jointly employ about 120,000 worldwide, although UBS has said it will be cutting jobs to reduce costs.

Credit Suisse is now a part of UBS | World Business Watch

A court in Singapore on Friday (May 26) ordered fallen banking giant Credit Suisse to pay USD 926 million to a former Georgian prime minister. The payment was ordered as it was determined by the court that Credit Suisse failed in its duty to safeguard the former PM's assets. The order is another blow to the collapsed bank.&nbsp;

Credit Suisse was recently bought by UBS, Switzerland's largest bank in order to prevent a financial collapse after series of scandals.

Credit Suisse was sued by former Georgia prime minister Bidzina Ivanishvili in Singapore, New Zealand and Bermuda. Ivanishvili blamed the bank for fraudulent mismanagement that led to the billionaire suffering investment losses. In Singapore, the lawsuit was filed against Credit Suisse Group's subsidiary, Credit Suisse Trust Ltd.

In its decision, the Singapore International Commercial Court ruled in favour of Ivanishvili. It ordered that he be compensated.

"That amount as presently calculated to the date of trial is USD 926 million," international judge Patricia Bergin said in a decision.

Bergin added that as a result of a settlement, the amount "should be reduced by USD 79,430,773."

Credit Suisse released a statement. In it, the collapsed bank said that it will appeal the decision.

"The judgment published today is wrong and poses very significant legal issues," it said.

The court in Singapore said that Credit Suisse failed to safeguard Ivanishvili's assets from fraudulent transactions by his relationship manager Patrice Lescaudron.

Lescaudron was handed a five-year jail term by Swiss authorities in 2018 on charges of fraud and forgery.

Credit Suisse had approached Ivanishvili in late 2004 to offer him wealth-management services just after the billionaire and his business partner sold a metallurgical complex in Russia for $1.6 billion.

Ivanishvili agreed a deposit of more than USD 1 million into a trust set up in 2005 for asset holding and inheritance planning.

Lescaudron, however, misappropriated millions of dollars over the next nine years until 2015 when his fraud was exposed, according to the judgement.

<h2>EU approves takeover</h2>

The European Commission meanwhile approved takeover of Credit Suisse by UBS on Thursday (May 25). It ruled that the merger does not harm competition in Europe.

The commission, which runs the EU's powerful anti-trust regulator, said "the merger would not significantly reduce competition in the markets where their activities overlap" within the European Economic Area.

(With inputs from agencies)

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A court in Singapore on Friday (May 26) ordered fallen banking giant Credit Suisse to pay USD 926 million to a former Georgian prime minister. The payment was ordered as it was determined by the court that Credit Suisse failed in its duty to safeguard the former PM's assets.

A court in Singapore on Friday (May 26) ordered fallen banking giant Credit Suisse to pay USD 926 million to a former Georgian prime minister. The payment was ordered as it was determined by the court that Credit Suisse failed in its duty to safeguard the former PM's assets. The order is another blow to the collapsed bank. Credit Suisse was recently bought by UBS, Switzerland's largest bank in order to prevent a financial collapse after series of scandals. Credit Suisse was sued by former Georgia prime minister Bidzina Ivanishvili in Singapore, New Zealand and Bermuda. Ivanishvili blamed the bank for fraudulent mismanagement that led to the billionaire suffering investment losses. In Singapore, the lawsuit was filed against Credit Suisse Group's subsidiary, Credit Suisse Trust Ltd. In its decision, the Singapore International Commercial Court ruled in favour of Ivanishvili. It ordered that he be compensated. "That amount as presently calculated to the date of trial is USD 926 million," international judge Patricia Bergin said in a decision. Bergin added that as a result of a settlement, the amount "should be reduced by USD 79,430,773." Credit Suisse released a statement. In it, the collapsed bank said that it will appeal the decision. "The judgment published today is wrong and poses very significant legal issues," it said. The court in Singapore said that Credit Suisse failed to safeguard Ivanishvili's assets from fraudulent transactions by his relationship manager Patrice Lescaudron. Lescaudron was handed a five-year jail term by Swiss authorities in 2018 on charges of fraud and forgery. Credit Suisse had approached Ivanishvili in late 2004 to offer him wealth-management services just after the billionaire and his business partner sold a metallurgical complex in Russia for $1.6 billion. Ivanishvili agreed a deposit of more than USD 1 million into a trust set up in 2005 for asset holding and inheritance planning. Lescaudron, however, misappropriated millions of dollars over the next nine years until 2015 when his fraud was exposed, according to the judgement. EU approves takeover The European Commission meanwhile approved takeover of Credit Suisse by UBS on Thursday (May 25). It ruled that the merger does not harm competition in Europe. The commission, which runs the EU's powerful anti-trust regulator, said "the merger would not significantly reduce competition in the markets where their activities overlap" within the European Economic Area. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Another jolt to Credit Suisse, court orders it to pay $926 million to Georgian ex-PM

A regulatory filing showed on Tuesday (May 16) that banking giant UBS felt that it was rushed into buying rival Credit Suisse in a deal it did not want. UBS told its investors in a filing to US Securities and Exchange Commission that it had less than four days to carry out due diligence.

It estimated a hit of about $17 billion from the takeover.

UBS is Switzerland's biggest bank. It agreed to buy Credit Suisse as its finances worsened given the global situation.&nbsp;

Clients of Credit Suisse were spooked and began withdrawing money after Credit Suisse' involvement in a series of corporate collapses. The trend accelerated after US bank failures, which sparked fear of a bigger banking crisis.

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.

On the very next day, UBS and Credit Suisse signed a confidentiality agreement. UBS then began its due diligence.

On March 19, the Swiss National Bank announced UBS would buy Credit Suisse for 3 billion Swiss francs ($3.4 billion) in stock and assume a loss of as much as 5 billion francs stemming from winding down parts of the business.

The final price was raised from an initial 1 billion francs, the filing showed.

Interest from UBS in buying Credit Suisse began in October when the ad hoc Strategy Committee of its board of directors reviewed its rival's distressed situation, according to the filing.

By that time, Credit Suisse was experiencing net assets and deposit outflows at levels that were substantially exceeding rates of the July September quarter, said UBS.

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 December 19.

In February, the Strategy Committee and board of directors each concluded an acquisition was "not desirable" and recommended further analysis to prepare for a scenario in which Credit Suisse was in such difficulty that regulators could ask UBS to step in.

UBS said it carried out financial analyses from January to mid-March and assessed potential legal structures and possible measures to address concerns, as well as any negative impact to itself, in case authorities proposed an acquisition.

(With inputs from agencies)

A regulatory filing showed on Tuesday (May 16) that banking giant UBS felt that it was rushed into buying rival Credit Suisse in a deal it did not want. UBS told its investors in a filing to US Securities and Exchange Commission that it had less than four days to carry out due diligence.

A regulatory filing showed on Tuesday (May 16) that banking giant UBS felt that it was rushed into buying rival Credit Suisse in a deal it did not want. UBS told its investors in a filing to US Securities and Exchange Commission that it had less than four days to carry out due diligence. It estimated a hit of about $17 billion from the takeover. UBS is Switzerland's biggest bank. It agreed to buy Credit Suisse as its finances worsened given the global situation. Clients of Credit Suisse were spooked and began withdrawing money after Credit Suisse' involvement in a series of corporate collapses. The trend accelerated after US bank failures, which sparked fear of a bigger banking crisis. 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. On the very next day, UBS and Credit Suisse signed a confidentiality agreement. UBS then began its due diligence. On March 19, the Swiss National Bank announced UBS would buy Credit Suisse for 3 billion Swiss francs ($3.4 billion) in stock and assume a loss of as much as 5 billion francs stemming from winding down parts of the business. The final price was raised from an initial 1 billion francs, the filing showed. Interest from UBS in buying Credit Suisse began in October when the ad hoc Strategy Committee of its board of directors reviewed its rival's distressed situation, according to the filing. By that time, Credit Suisse was experiencing net assets and deposit outflows at levels that were substantially exceeding rates of the July September quarter, said UBS. 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 December 19. In February, the Strategy Committee and board of directors each concluded an acquisition was "not desirable" and recommended further analysis to prepare for a scenario in which Credit Suisse was in such difficulty that regulators could ask UBS to step in. UBS said it carried out financial analyses from January to mid-March and assessed potential legal structures and possible measures to address concerns, as well as any negative impact to itself, in case authorities proposed an acquisition. (With inputs from agencies)

Was rushed into Credit Suisse merger, says UBS

Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank. Authorities in Switzerland forced Credit Suisse to merge with rival UBS to prevent own collapse.

Though the takeover averted a catastrophe in Swiss banking system, it made bonds worth USD 17 billion held by investors worthless.

An anonymous investor quoted by BBC had bought USD 500000 worth of bonds in January. The investor took the decision even after several problems in the bank.

"Whenever I spoke to them, the bank gave me constant reassurances that this was just a blip, so I decided to go for it. It didn't feel like I was gambling," BBC quoted the investor as saying.

The type of bonds bought in this case were reportedly AT1, a riskier type of bond the value of which can be written down to zero. This is something that happened when Credit Suisse was taken over by UBS.

Now, dozens of bondholders in Singapore are joining hands to hold the Swiss government responsible. The main grievance is the manner in which the merger was conducted.

The investors reportedly claim that terms of bonds should have made them first to be compensated when the bank was on the brink of collapse. The bondholders were to be given priority over shareholders. However, shareholders were allowed to exchange their Credit Suisse shares with UBS shares.

This in effect means that shareholders got something but bondholders did not.

The legal firm, which is representing bondholders, has alleged that the Swiss regulator's decision was "an unlawful action" and that it had "devastating consequences on thousands of retail and small investors globally."

Bondholders who talked to BBC expressed frustration after losing their money and&nbsp;questioned Switzerland's banking reputation.

"We're losing sleep over this. It should have been a rock solid investment, but now I think the reputation of Switzerland and Swiss banks has gone down the tube," said an Asian investor quoted anonymously by BBC.

"Who in the world is going to trust Switzerland anymore?"

(With inputs from agencies) 
 
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Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank.

Investors in Asia are joining international lawsuits against the Swiss government for its handling of affairs during the takeover of Credt Suisse, the iconic but troubled bank. Authorities in Switzerland forced Credit Suisse to merge with rival UBS to prevent own collapse. Though the takeover averted a catastrophe in Swiss banking system, it made bonds worth USD 17 billion held by investors worthless. An anonymous investor quoted by BBC had bought USD 500000 worth of bonds in January. The investor took the decision even after several problems in the bank. "Whenever I spoke to them, the bank gave me constant reassurances that this was just a blip, so I decided to go for it. It didn't feel like I was gambling," BBC quoted the investor as saying. The type of bonds bought in this case were reportedly AT1, a riskier type of bond the value of which can be written down to zero. This is something that happened when Credit Suisse was taken over by UBS. Now, dozens of bondholders in Singapore are joining hands to hold the Swiss government responsible. The main grievance is the manner in which the merger was conducted. The investors reportedly claim that terms of bonds should have made them first to be compensated when the bank was on the brink of collapse. The bondholders were to be given priority over shareholders. However, shareholders were allowed to exchange their Credit Suisse shares with UBS shares. This in effect means that shareholders got something but bondholders did not. The legal firm, which is representing bondholders, has alleged that the Swiss regulator's decision was "an unlawful action" and that it had "devastating consequences on thousands of retail and small investors globally." Bondholders who talked to BBC expressed frustration after losing their money and questioned Switzerland's banking reputation. "We're losing sleep over this. It should have been a rock solid investment, but now I think the reputation of Switzerland and Swiss banks has gone down the tube," said an Asian investor quoted anonymously by BBC. "Who in the world is going to trust Switzerland anymore?" (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Credit Suisse: Bondholders in Asia sue Swiss government after wipeout

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday.&nbsp;

The Swiss bank announced that it experienced a significant outflow of assets totaling 61 billion Swiss francs ($68 billion) in the first three months of 2023,&nbsp;with the bank's wealth management division being the hardest hit.&nbsp;

A bank run takes place&nbsp;when a large number of customers of a bank withdraw their deposits at the same time over fears about the bank's solvency.

Depositors began withdrawing their funds from the scandal-plagued Credit Suisse after it became entangled in the market upheaval caused by the failures of US lenders Silicon Valley Bank and Signature Bank.

As a result, Swiss authorities scrambled to create a rescue package in which UBS agreed to buy Credit Suisse for 3 billion Swiss francs in equity and accept up to 5 billion Swiss francs in damages. It also included state financial guarantees worth 200 billion francs.

A Tricky Position

Despite&nbsp;a major bank run, the Swiss banking giant also reported&nbsp;a net profit of 12.8 billion Swiss francs ($14 billion)&nbsp;for the first quarter ending March 2023. This was a notable increase compared to the significant loss incurred in the same period last year. The bank attributed the positive net profit mainly to the emergency takeover deal that wiped out high-risk debtors.

The significant asset outflows along with a&nbsp;rise in net profit&nbsp;was met with mixed reactions in the market. While the increase in net profit was viewed positively, the persistent outflows of assets raised concerns about the bank's ability to overcome its challenges.&nbsp;

Meanwhile, Credit Suisse's ability to generate revenue appeared to be impaired. London-based KBW analyst Thomas Hallett told&nbsp;Reuters that the "rescue deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced."

Credit Suisse also cancelled the planned $175 million acquisition of Michael Klein's investment banking business, which it had planned to spin alongside its own investment banking division.

According to RBC Capital Markets analysts,&nbsp;the results show&nbsp;the difficult work ahead for UBS in acquiring&nbsp;its rival.&nbsp;UBS is yet to announce how many Credit Suisse jobs will be cut. Following the takeover, UBS executives stated that the deal will result in $8 billion in cost savings by 2027, $6 billion of which will come from reducing the number of full-time employees.

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday.

Credit Suisse, one of the leading banks in Switzerland, faced a significant "bank run" ahead of its collapse in March 2023, a Reuters report indicated on Monday. The Swiss bank announced that it experienced a significant outflow of assets totaling 61 billion Swiss francs ($68 billion) in the first three months of 2023, with the bank's wealth management division being the hardest hit. A bank run takes place when a large number of customers of a bank withdraw their deposits at the same time over fears about the bank's solvency. Depositors began withdrawing their funds from the scandal-plagued Credit Suisse after it became entangled in the market upheaval caused by the failures of US lenders Silicon Valley Bank and Signature Bank. As a result, Swiss authorities scrambled to create a rescue package in which UBS agreed to buy Credit Suisse for 3 billion Swiss francs in equity and accept up to 5 billion Swiss francs in damages. It also included state financial guarantees worth 200 billion francs. A Tricky Position Despite a major bank run, the Swiss banking giant also reported a net profit of 12.8 billion Swiss francs ($14 billion) for the first quarter ending March 2023. This was a notable increase compared to the significant loss incurred in the same period last year. The bank attributed the positive net profit mainly to the emergency takeover deal that wiped out high-risk debtors. The significant asset outflows along with a rise in net profit was met with mixed reactions in the market. While the increase in net profit was viewed positively, the persistent outflows of assets raised concerns about the bank's ability to overcome its challenges. Meanwhile, Credit Suisse's ability to generate revenue appeared to be impaired. London-based KBW analyst Thomas Hallett told Reuters that the "rescue deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced." Credit Suisse also cancelled the planned $175 million acquisition of Michael Klein's investment banking business, which it had planned to spin alongside its own investment banking division. According to RBC Capital Markets analysts, the results show the difficult work ahead for UBS in acquiring its rival. UBS is yet to announce how many Credit Suisse jobs will be cut. Following the takeover, UBS executives stated that the deal will result in $8 billion in cost savings by 2027, $6 billion of which will come from reducing the number of full-time employees.

Credit Suisse faced 'bank run', depositors withdrew $68 billion ahead of UBS takeover

Swiss President Alain Berset on Tuesday (April 11) defended Credit Suisse takeover by UBS saying that letting Credit Suisse fall would have triggered a catastrophe. He was addressing an extraordinary session of Swiss parliament. The session was called to debate the controversial March 19 deal that was arranged by the government quickly behind closed doors.

Letting Credit Suisse go bankrupt once the stock markets reopened on March 20 "would potentially have created an international financial crisis with devastating effects for Switzerland, for companies, for private customers but also for the reputation of our country", the president said.

"The demise of Credit Suisse is not the demise of Switzerland. It is the loss of a bank; a large bank but only a bank. Nothing more, nothing less."

Watch | Saudi Prince Fahad to pay Credit Suisse $41 million

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The three-day session at the Federal Assembly in Bern was called after lawmakers found themselves before a fait accompli.

Credit Suisse takeover by UBS has dramatically changed financial landscape of Switzerland. The Alpine country stakes much of its national prestige on sound banking.

The takeover triggered unease among the public and lawmakers alike, with the country's second-largest bank rapidly imploding after 167 years, during which it helped finance Switzerland's industrial growth.

"Without intervention, Credit Suisse would have found itself, in all likelihood, in default on March 20 or 21," Berset said. 
Rather than bankruptcy, nationalisation or attempting to restructure a bank in which confidence was shot, the takeover was considered the most likely option to restore market confidence, the president told the 46-member Council of States, the upper house of parliament.

(With inputs from agencies)

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Swiss President Alain Berset on Tuesday (April 11) defended Credit Suisse takeover by UBS saying that letting Credit Suisse fall would have triggered a catastrophe.

Swiss President Alain Berset on Tuesday (April 11) defended Credit Suisse takeover by UBS saying that letting Credit Suisse fall would have triggered a catastrophe. He was addressing an extraordinary session of Swiss parliament. The session was called to debate the controversial March 19 deal that was arranged by the government quickly behind closed doors. Letting Credit Suisse go bankrupt once the stock markets reopened on March 20 "would potentially have created an international financial crisis with devastating effects for Switzerland, for companies, for private customers but also for the reputation of our country", the president said. "The demise of Credit Suisse is not the demise of Switzerland. It is the loss of a bank; a large bank but only a bank. Nothing more, nothing less." Watch | Saudi Prince Fahad to pay Credit Suisse $41 million × The three-day session at the Federal Assembly in Bern was called after lawmakers found themselves before a fait accompli. Credit Suisse takeover by UBS has dramatically changed financial landscape of Switzerland. The Alpine country stakes much of its national prestige on sound banking. The takeover triggered unease among the public and lawmakers alike, with the country's second-largest bank rapidly imploding after 167 years, during which it helped finance Switzerland's industrial growth. "Without intervention, Credit Suisse would have found itself, in all likelihood, in default on March 20 or 21," Berset said. Rather than bankruptcy, nationalisation or attempting to restructure a bank in which confidence was shot, the takeover was considered the most likely option to restore market confidence, the president told the 46-member Council of States, the upper house of parliament. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Fall of Credit Suisse not a fall of Switzerland, says president

Investors in the now-defunct Swiss lender have been losing money for the past several months, but if there is reason to be optimistic, it is the fact that a London court has ruled in its favour. A Saudi prince who owes millions of dollars in credit will have to pay back for his lavish lifestyle.

Saudi Prince Fahad to pay Credit Suisse $41 million

Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland.

The hastily arranged takeover by Zurich-based UBS, for which Switzerland invoked emergency legislation, bypassed Credit Suisse shareholders, who would otherwise have had a say, and all but wiped them out.

Credit Suisse was 167-year-old bank founded by Alfred Escher, a Swiss magnate who was affectionately nicknamed King Alfred the First. Escher helped build country's railways and then the bank.

Protesters gathered outside the concert venue where the meeting took place, with some erecting a capsized boat to depict the bank's demise.

Inside, chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief "until the beginning of the fateful week" that it could survive.

After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities.

"I can understand the bitterness, the anger and the shock of all those who are disappointed, overwhelmed and affected by the developments," Lehmann said at the Hallenstadion, Zurich's biggest indoor arena.

With the bank's share price in free-fall and fearing an imminent collapse that could have triggered an international banking crisis, the Swiss government, the central bank and the financial regulators strongarmed UBS into taking over Credit Suisse on March 19.

(With inputs from agencies)

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Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland.

Chairman of Credit Suisse apologised to shareholders in their final meeting on Tuesday (April 4). Axel Lehmann, the chairman faced shareholder anger over demise of the bank that was among symbols of Switzerland. The hastily arranged takeover by Zurich-based UBS, for which Switzerland invoked emergency legislation, bypassed Credit Suisse shareholders, who would otherwise have had a say, and all but wiped them out. Credit Suisse was 167-year-old bank founded by Alfred Escher, a Swiss magnate who was affectionately nicknamed King Alfred the First. Escher helped build country's railways and then the bank. Protesters gathered outside the concert venue where the meeting took place, with some erecting a capsized boat to depict the bank's demise. Inside, chairman Axel Lehmann issued an apology, saying he had run out of time to turn the bank around, despite his belief "until the beginning of the fateful week" that it could survive. After years of scandal and losses, Credit Suisse came to the brink of collapse before UBS rode to the rescue with a merger engineered and bankrolled by the Swiss authorities. "I can understand the bitterness, the anger and the shock of all those who are disappointed, overwhelmed and affected by the developments," Lehmann said at the Hallenstadion, Zurich's biggest indoor arena. With the bank's share price in free-fall and fearing an imminent collapse that could have triggered an international banking crisis, the Swiss government, the central bank and the financial regulators strongarmed UBS into taking over Credit Suisse on March 19. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Credit Suisse chairman apologises for bank's demise in last shareholders' meeting

The bank created by UBS's stakeholder of Credit Suisse is reportedly planning to cut its Workforce by 20 to 30 percent, the Swiss daily reported. UBS agreed to acquire credit Suites for 3.3 billion dollars to prevent a meltdown in Switzerland's Financial system that was also to ensure Financial stability globally, however the merger of two banks with 1.6 trillion dollars in assets and over 120 000 employees worldwide has sparked concerns about the size of the new bank the job cards are expected to impact around 11 000 jobs in Switzerland where the two Banks had previously employed slightly over 72 000 to 50 000 people respectively.

UBS to reduce workforce by 20-30 % after Credit Suisse buy

Switzerland's Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse&nbsp;by UBS Group, the office of the attorney general said on Sunday.

The prosecutor, based in the Swiss capital Bern, is looking into potential breaches of the country's criminal law by government officials, regulators and executives at the two banks, which&nbsp;agreed on an emergency merger&nbsp;last month to avoid a meltdown in the country's financial system.

There were "numerous aspects of events around Credit Suisse" that warranted investigation and which needed to be analysed to "identify any criminal offences that could fall within the competence of the [prosecutor]", it said in a statement.

"The Office of the Attorney General wants to proactively fulfil its mandate and responsibility to contribute to a clean Swiss financial centre and has set up a monitoring system so that it can take action immediately on any issues that fall within its area of responsibility," it added.

It gave no indication of any specific aspects of the merger agreement it might look into or how long the investigation might last.

Both UBS and Credit Suisse declined to comment.

<h2 data-testid="Heading">Out of ordinary</h2>

"It's astonishing that the prosecutor would comment," said Mark Pieth, professor emeritus of the University of Basel, where he has taught criminal law and criminology. But the rescue "is so out of the ordinary that they had to say something."

Pieth said the prosecutor could be probing breaches of secrecy provisions by officials, or the trading on inside information, adding that the wiping out of some bondholders as planned under the deal is also problematic.

In the deal announced on March 19 and orchestrated by the Swiss government, the central bank and market regulator, UBS would acquire rival Credit Suisse for 3 billion Swiss francs ($3.3 billion). The bank is trying to close the deal by as soon as the end of April, sources have told Reuters.

The Swiss public and politicians have voiced concerns about the level of state support, with nearly 260 billion Swiss francs in liquidity and guarantees offered by the government and Swiss National Bank.

A poll of Swiss economists&nbsp;found that nearly half think the takeover of Credit Suisse was not the best solution, and warned that the situation had dented Switzerland's reputation as a banking centre.

The takeover, which was also designed to help secure financial stability globally during a period of turmoil, has sparked concern among critics about the size of the merged bank, with $1.6 trillion in assets and more than 120,000 staff worldwide.

Up to 30% of staff&nbsp;could lose their jobs due to the takeover, according to an unnamed senior UBS manager quoted in Swiss media.

Switzerland's Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse by UBS Group, the office of the attorney general said on Sunday.

Switzerland's Federal Prosecutor has opened an investigation into the state-backed takeover of Credit Suisse by UBS Group, the office of the attorney general said on Sunday. The prosecutor, based in the Swiss capital Bern, is looking into potential breaches of the country's criminal law by government officials, regulators and executives at the two banks, which agreed on an emergency merger last month to avoid a meltdown in the country's financial system. There were "numerous aspects of events around Credit Suisse" that warranted investigation and which needed to be analysed to "identify any criminal offences that could fall within the competence of the [prosecutor]", it said in a statement. "The Office of the Attorney General wants to proactively fulfil its mandate and responsibility to contribute to a clean Swiss financial centre and has set up a monitoring system so that it can take action immediately on any issues that fall within its area of responsibility," it added. It gave no indication of any specific aspects of the merger agreement it might look into or how long the investigation might last. Both UBS and Credit Suisse declined to comment. Out of ordinary "It's astonishing that the prosecutor would comment," said Mark Pieth, professor emeritus of the University of Basel, where he has taught criminal law and criminology. But the rescue "is so out of the ordinary that they had to say something." Pieth said the prosecutor could be probing breaches of secrecy provisions by officials, or the trading on inside information, adding that the wiping out of some bondholders as planned under the deal is also problematic. In the deal announced on March 19 and orchestrated by the Swiss government, the central bank and market regulator, UBS would acquire rival Credit Suisse for 3 billion Swiss francs ($3.3 billion). The bank is trying to close the deal by as soon as the end of April, sources have told Reuters. The Swiss public and politicians have voiced concerns about the level of state support, with nearly 260 billion Swiss francs in liquidity and guarantees offered by the government and Swiss National Bank. A poll of Swiss economists found that nearly half think the takeover of Credit Suisse was not the best solution, and warned that the situation had dented Switzerland's reputation as a banking centre. The takeover, which was also designed to help secure financial stability globally during a period of turmoil, has sparked concern among critics about the size of the merged bank, with $1.6 trillion in assets and more than 120,000 staff worldwide. Up to 30% of staff could lose their jobs due to the takeover, according to an unnamed senior UBS manager quoted in Swiss media.

Swiss prosecutor probes state-backed Credit Suisse takeover of UBS

The hastily arranged alliance of Credit Suisse and UBS could trigger a loss of 36,000 jobs across the world, according to German media. The management brought in to wade through the stormy waters of the merger may be looking to cut between 20 per cent to 30 per cent of the workforce, meaning somewhere between 25,000 to 36,000 could end up losing their jobs, reported SonntagsZeitung.

The hastily arranged alliance of Credit Suisse and UBS could trigger a loss of 36,000 jobs across the world, according to German media. The management brought in to wade through the stormy waters of the merger may be looking to cut between 20 per cent to 30 per cent of the workforce, meaning somewhere between 25,000 to 36,000 could end up losing their jobs, reported SonntagsZeitung. UBS and Credit Suisse employ 72,000 and 50,000 people worldwide respectively. Switzerland, the base of Credit Suisse, may alone see a cut of 11,000 jobs. Meanwhile, jobs in the US could also be at severe risk, the publication stated. The release of the report comes in the same week when UBS announced it was bringing its former chief executive Sergio Ermotti to handle the absorption of troubled rival Credit Suisse. WATCH | Why you should be worried if Credit Suisse collapses Apart from thousands losing their jobs, investors have also lost billions. Reportedly, over $17.3 billion worth of bonds issued by Credit Suisse bank have become worthless after UBS came in with the takeover bid. Under the takeover deal, UBS will be writing down the bank's additional tier 1 (AT1) bonds to increase core capital. “The extraordinary government support will trigger a complete write-down of the nominal value of all AT1 shares of Credit Suisse in the amount of around 16 billion [Swiss francs],” said Swiss regulator FINMA. The AT1 bonds were primarily created for the failing banks to absorb losses, thereby reducing the chances of a taxpayer-funded bailout. Because of the higher risks, the AT1 bonds provided a greater yield than most other bonds and they became a quick favourite of institutional investors. ALSO READ | Over $17 billion worth of bonds become zero after Credit Suisse takeover by UBS After reports came in that Credit Suisse had collapsed, the Swiss government stepped up and arranged a takeover by the UBS Group for $3.25 billion. The takeover was aimed at preventing economic turmoil from spreading throughout the country and beyond. (With inputs from agencies) WATCH WION LIVE HERE:

Hastily arranged marriage of UBS-Credit Suisse could lead to loss of 36,000 jobs: Report

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