Swiss Finance Minister Karin Keller-Sutter has confirmed that UBS’s multi-billion state-sponsored takeover of Credit score Suisse ought to proceed easily with none political obstructions.
Credit score Suisse’s rescue is a certain factor
In an interview with the newspaper, Finanz und Wirtschaft, revealed on Saturday, Keller-Sutter acknowledged that she doesn’t see any obstacles for the time being.
The Swiss parliament is because of maintain a unprecedented session subsequent week to debate the emergency merger engineered by Swiss authorities after Credit score Suisse got here near collapse.
UBS and Credit score Suisse will create a mixed financial institution with $1.6 trillion in property – double the dimensions of all the Swiss economic system – and greater than 120,000 workers.
Keller-Sutter emphasised that finishing the merger is the very best precedence, and the federal government’s intervention final month, which critics have stated got here too late and promised an excessive amount of taxpayer assist for a financial institution that paid out billions in bonuses to executives, was geared toward guaranteeing the soundness of the Swiss economic system and the Swiss monetary middle and to forestall a world monetary disaster.
The first purpose of the Federal Council was to make sure the soundness of the Swiss economic system and the Swiss monetary middle and to forestall a world monetary disaster. Underneath the circumstances, it was and is the very best alternative, which additionally locations the least burden on the state and the taxpayer.
Karin Keller-Sutter
Keller-Sutter criticized the tradition at Credit score Suisse, which she stated had set the flawed incentives and had not discovered from earlier scandals and prosecutions. She additionally defended the writedown of AT1 bonds to zero, a controversial a part of the rescue. “These are high-risk bonds with excessive yields, typically over 9%,” Keller-Sutter stated. “The prospectus for these bonds makes it clear that if an organization claims oblique authorities assist, they are often written off.”
UBS’s Chief Government Sergio Ermotti has instructed Credit score Suisse workers it’s “crucial” to stay centered on shoppers and maintaining the enterprise working because the merger of the 2 banks proceeds, in accordance with an inner memo seen by Reuters.
“We can not let ourselves get overly distracted by the mixing efforts,” Ermotti stated within the memo. “It’s crucial for us to stay centered on supporting our shoppers and sustaining operational excellence.”
Parliament’s particular session
The particular parliamentary session subsequent week was vital, she added, and a welcome alternative to get to the reality of the Credit score Suisse debacle.
Keller-Sutter additionally commented that UBS should maintain extra fairness after the takeover, which can relatively power them to shrink, and that the dangers to the taxpayer have been additionally acceptable – although the federal government might assume as much as 9 billion francs in losses incurred by UBS by the takeover.
Sergio Ermotti has additionally tried to calm the nerves of anxious staff apprehensive about huge layoffs and upheaval forward. In his first communication to Credit score Suisse workers after taking up as UBS CEO, Ermotti stated there could be “change and onerous selections” forward.
Nonetheless, he tried to reassure them by emphasizing that it’s crucial for UBS to stay centered on supporting their shoppers and sustaining operational excellence through the merger course of.