2023-06-12 05:10:11
UBS CEO Sergio Ermotti warned Friday that the coming months will likely be “difficult”, adding that they will be accompanied by a “wave” of difficult decisions, especially with regard to employment.
The country’s most prominent bank, UBS, was forced into the merger to prevent the collapse of rival Credit Suisse, but did not wait until Monday to start it.
“From Monday, UPS can be proactive,” Andreas Vendetti, financial analyst at Vontobel, told AFP, if the schedule remains the same.
UPS has been preparing for the process since mid-March and already has an idea of what it will keep and what it will sell or close, but “what it can do is still limited” until the merger is completed, according to Vendetti.
The process of merging the two largest banks in Switzerland will be technically and politically complex, and will lead to a giant bank unlike any bank known to Switzerland. The size of the bank created by the move is worrying political leaders.
It is expected that thousands of jobs will be lost due to their duplication.
But according to Swiss Central Bank President Thomas Jordaan, there was no alternative solution.
“Of course it is unfortunate that there is only one (large bank) left. But I am sure that if the acquisition by UBS was not successful, we would have witnessed an international financial crisis,” he said Sunday in an interview with the weekly “Sundag Tzitog” magazine. .
Credit Suisse faced the risk of collapse when its share prices fell more than 30 percent during the March 15 trading session, following the collapse of three US regional banks.
The Swiss government, central bank and financial regulators then stepped in and forced UBS to launch a $3.25 billion takeover announced on March 19.
© 2023 AFP
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