2023-05-16 22:44:42
Swiss bank UBS Group AG has set aside $4 billion in provisions to deal with potential litigation and regulatory issues arising from its takeover of Credit Suisse, the bank said in a filing on Tuesday, as it prepares to complete the rescue of its Swiss rival.
UBS estimated the “negative goodwill” resulting from the acquisition of Credit Suisse at $34.8 billion.
The massive one-time gain from the transaction, resulting from the “negative goodwill” attached to the 167-year-old bank, which has struggled for years with scandals and losses, will allow UBS to absorb one-time losses related to the acquisition.
Jefferies analysts had said restructuring costs, litigation provisions and the planned liquidation of the non-core unit could be as high as $28 billion, but only a portion of that could be accounted for up front. .
Since UBS does not yet have an overview of Credit Suisse accounts, the figures could change in the coming months.
The operation – the first bailout of a global bank since the 2008 financial crisis – will create a global wealth manager with more than $5 trillion in invested assets and employing more than 120,000 people worldwide . (Reporting by John Revill, Noele Illien, Nupur Anand and Manya Saini; Writing by Elisa Martinuzzi, Lananh Nguyen, Tomasz Janowski and Lisa Shumaker)
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