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Now UBS has definitely swallowed Credit Suisse. And immediately gives the tariff – as announced several times in advance. Despite this, the disclosure of the strict code of conduct was not well received by CS employees. This creates the impression of good and bad bankers, Blick hears from the banking community.
The hurdle uncovered by the “Financial Times”: The British financial scene writes “red lines” that CS employees should not cross from day one of the takeover. UBS management has set nearly two dozen strict rules for taming their new colleagues.
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.
Request permission for large loans
According to the report, the list of restrictions includes eleven financial and twelve non-financial risks and was prepared by the compliance department. In addition, CS bankers will have to ask for permission in the future if they want to make loans of more than US$60 million secured by assets such as yachts, ships and real estate. It’s a well-established practice in serving super-rich customers.
Neither UBS nor CS wanted to comment on this information from the Financial Times. Even if CS employees are now uncomfortable with the type of communication and suddenly feel like they’re being managed by the new owner, the instructions to take action shouldn’t come as a surprise.
UBS President Colm Kelleher (66) warned of “cultural contamination” by his new colleagues last month, adding: “At UBS we will raise the bar very high for new employees.” First of all, Kelleher meant CS’ “out of control” investment bank.
No compromise on risk
In terms of risk tolerance, CS has been showing zero tolerance since yesterday Monday. Kelleher and UBS boss Sergio Ermotti (63) made this clear in an “open letter”: “We will continue to rely on our strong UBS corporate culture, conservative approach to risk and high quality of service, and we will make no compromises.”
In the spirit of a clean financial center, as legal expert Peter V. Kunz (58) emphasized on Blick TV: “It’s about reducing risky financial products and larger risky clients. This way we control those risk areas that also led to CS’ demise. you will be more confident that you can get it under it. »
However, the red lines now make CS employees blush. In terms of communication, the start of the new UBS was not optimal to say the least, especially for new employees.
One in ten is already gone
In principle, the Swiss Bankers Association also wants to have a say in the upcoming downsizing. “SBPV requires transparent communication and eye-level negotiations,” says a media release. The aim should be to preserve as many jobs as possible in Switzerland.
Some CS employees didn’t even wait for the red lines or the blue letter and left the bank voluntarily, as UBS boss Ermotti confirmed on Swiss television SRF: “About 10 percent of the workforce in recent months – even taking over.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
