UBS confident about Credit Suisse deal despite 'huge' risk
The head of UBS has voiced confidence that the Swiss bank will succeed in a government-engineered takeover of hobbled rival Credit Suisse
GENEVA (AP) — The UBS chairman voiced confidence Wednesday that the Swiss bank will succeed in a government-engineered takeover of hobbled rival Credit Suisse, pledging the deal will reduce costs, benefit shareholders and buttress Swiss finance despite “huge” risks in knitting the global lenders together.
Speaking to UBS shareholders, Colm Kelleher gave an overview of the 3 billion Swiss franc ($3.25 billion) takeover that he said would close in the next few months, alluding to the complexity of the first-ever merger of two “global systemically important banks.”
Swiss government officials and regulators hastily orchestrated the deal that was announced on March 19 after Credit Suisse’s stock plunged and jittery depositors quickly pulled out their money.
Authorities feared that a teetering Credit Suisse could further roil global financial markets following the collapse of two U.S. banks.
