No more unnecessary risks: UBS sets ‘red lines’ for CS bankers

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Citing People familiar with the measures, the Financial Times writes that UBS executives have compiled a list of nearly two dozen “red lines” barring Credit Suisse employees from a range of activities from day one of the two banks’ merger.

According to the report, the list of limitations includes 11 financial and 12 non-financial risks and was prepared by the compliance department. While many of the risks that govern matters such as the distribution of research results and the use of office space are operational in nature, other precautionary measures affect Credit Suisse’s business areas more directly.

Ukrainian politicians banned

According to the report, prohibited activities include recruiting customers from countries such as Libya, Russia, Sudan and Venezuela, and launching new products without the permission of UBS executives. Ukrainian politicians and state-owned companies will also be blocked to prevent possible money laundering. UBS itself did not want to comment on this information to the AWP news agency.

The background to the “red lines” is probably Credit Suisse’s earlier risk culture. Traditionally, they have been much more willing to accept risky customers and offer them high-risk products.

Last Trading Day of CS Shares

UBS completed its legal takeover of Credit Suisse on Monday, as announced in an “open letter” published in various daily newspapers. Last Friday, UBS and the federal government signed the required agreement on loss guarantees from the CS acquisition. Today will also likely be the last trading day for CS shares on the SIX Swiss Exchange. (pbe/SDA)

Source :Blick