UBS has announced that it has completed the takeover of its local rival Credit suisse almost after three months since the Swiss government arranged a deal to combine the country’s two largest banks. UBS will manage two separate parent banks, UBS and Credit Suisse, with each continuing to have its own branches and customers.
The 167 years old Credit Suisse was is the spotlight for a series of scandals ranging from money laundering for a Bulgarian cocaine ring to bad debts at hedge fund and hiding secret offshore accounts of wealthy Americans who are evading tax payments in US.
The new group will oversee $5 trillion of assets. Along with this UBS will also inherit all the ongoing legal actions and cases against Credit Suisse that includes a recent ruling in Singapore that said Credit Suisse owes former Georgian Prime Minister Bidzina Ivanishvili hundreds of millions of dollars for failing to protect the billionaire’s money in a trust pilfered by a manager. The former Georgian president Ivanishvili have also filed a case against Credit Suisse in Bermuda says a bank subsidiary failed to prevent “fraudulent mismanagement” of Ivanishvilli assets in two life insurance policies.
Five most senior executive of Credit Suisse which includes CFO, General council, Head of Asia-Pacific region, Co-Head of investment banks and Co-Head of markets have departed just as the UBS completed the takeover. 10% of the employees had already left Credit Suisse in past three months while further job cuts are expected in the coming weeks, with Credit Suisse’s investment bank and its domestic business.
Today is the last trading day for Credit Suisse shares on Swiss stock exchange. Credit Suisse will also no longer be traded on New York stock exchange The U.S. Federal Reserve, the European Union’s executive branch and others worldwide have signed off on the takeover. Credit Suisse shareholders will receive one share in UBS for every 22.48 in stock. UBS said full integration of Credit Suisse could take three to five years.
