2023-05-03 15:29:40
Until the finalization, the communication of UBS will remain hampered, underlined Sergio Ermotti. “We want to act quickly but without haste,” he added. As far as Swiss activities are concerned, “all options are on the table”.
Job cuts are inevitable, said the director general. Much of it, however, will be absorbed by natural fluctuations. As for the layoffs, they will be backed by a generous announced social plan.
Not too big for Switzerland
Sergio Ermotti believes that it is wrong to consider that the new UBS is too big for Switzerland. Both UBS and Credit Suisse have reduced their balance sheets in recent years, he pointed out. What matters, however, is not the size but the risks contained in the balance sheets. Thus, the Silicon Valley Bank, which caused the banking crisis in the United States, had only 1% market share in the country of Uncle Sam.
We will do everything so that the taxpayer suffers no loss
As far as market shares are concerned, the cantonal banks often have larger shares than the big banks in certain cantons for mortgage business. As for the network of Raiffeisen subsidiaries, it is denser. While UBS has a comprehensive offering, there is competition in every segment.
No losses for the taxpayer
“We will do everything so that the taxpayer suffers no loss,” promised Sergio Ermotti. He recalled that the bank should first absorb potential losses of 5 billion francs before using the state guarantee. Losses for the Confederation or the SNB due to the liquidity loans are “highly unlikely”, is convinced the managing director.
The image of the “monster bank” evoked by certain newspapers is not to the liking of the boss of UBS, who nevertheless says he understands the concerns. The discussion must be “regarding the facts”, he insists. The recovery must be an opportunity to create something positive. It is in the interest of customers, the financial center and the Swiss economy.
Heated political debates
If politics has its role to play, it is a question of not “playing with fire” and not losing sight of Switzerland’s long-term interests, according to Sergio Ermotti. The vigor of the debates can also be explained in the context of the approach of the federal elections. “He urges me that we are in October,” said the general manager.
He does not call for a system of banking partitioning or stricter rules in terms of capitalization. “Credit Suisse experienced this crisis because, following a series of setbacks, it lost confidence there and was no longer able to remain profitable in a sustainable way,” he explained. “You can’t regulate customer confidence or profitability, not even with more capital or liquidity.”
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