Credit Suisse brand likely to be liquidated – Kommersant

The leaders of UBS made a fundamental decision on the complete takeover of Credit Suisse, which involves the liquidation of the brand of the latter, reports NZZ am Sonntag.

UBS announced on the purchase of Credit Suisse for $2 billion in March of this year. On June 12, UBS completed the takeover of its competitor. Reportedthat UBS Group will manage two parent banks – UBS AG and Credit Suisse AG. Each institution will retain subsidiaries and branches, as well as continue to serve its clients and work with counterparties. And the united company will operate as a consolidated banking group.

Back in April reportedthat UBS after the merger with Credit Suisse is going to cut up to 30% of employees. After the merger, the total staff of the bank is 120 thousand people, so it can cut more than 35 thousand employees. According to sources, this primarily reflects the desire of UBS to absorb the Swiss business of Credit Suisse and reduce costs. In particular, cuts should affect such divisions of Credit Suisse as retail and investment banking.

The Swiss authorities, which initiated the merger of the country’s two largest banks in March, criticize the decision of the UBS management, wanting to save tens of thousands of jobs and recalling that the deal took place only thanks to billions of francs of state financial support. However, under the terms of the deal, UBS management has the right to dispose of the purchased bank as it sees fit. And despite the criticism from the Swiss authorities and the disagreement of some board members, most of the leaders of the UBS Group came to the decision that all the company’s customers will be served under a single brand, writes NZZ.

Kirill Sarkhanyants