UBS buys Credit Suisse: Ralph Hamers, the CEO of UBS, recently told the Swiss broadcaster SRF that his company is ready to deal with any problems that may arise from buying Credit Suisse (CSGN.S).
The Swiss authorities on Sunday negotiated a deal in which UBS would pay 3.23 billion Swiss francs ($3.23 billion) for Credit Suisse, a bank that has been in operation for 167 years, and absorb losses of up to $5.4 billion. UBS will be able to manage the risks that could result from a so-called superbank, according to Hamers, who will serve as chief executive of the combined company.
Credit Suisse Stock
“At UBS, we have a very high capital ratio as well as a very strong liquidity position. Consequently, we have reduced market risks “In the interview that was aired early on Monday, Hamers said: “The next thing we need to do is change CS’s investment bank into an institution more akin to UBS’s. This type of investment bank is known as capital-light. We aren’t taking as much of a chance by doing UBS buys Credit Suisse.”
UBS Leads Stable Credit Suisse
He said he did not currently have any figures regarding layoffs at Credit Suisse, although there would always be cost savings.
He continued by saying that there were currently no firm plans in place. “Undoubtedly, there are chances and opportunities for growth. The numerous staff members—CS has 50,000 worldwide—also have a new future with us. Together, we can create a bank that is even more stunning.”
Credit Suisse Customers
He also said that the planned purchase would make Credit Suisse customers and the Swiss financial market safer and more stable. “With the takeover, we are restoring stability and security for CS clients,” said Hamers. “But also that we are maintaining the Swiss financial center’s reputation.”
