Categories: Market

Merging UBS and CS doesn’t make sense

class=”sc-97fd9fa8-0 jNFKxv”>

The global banking earthquake also shook the Swiss financial center. First of all, the shares of the crisis-stricken big bank Credit Suisse have once again come under heavy pressure – most of all major European banks. The question arises, how to proceed with CS? Over the weekend, the possibility of a merger with UBS came up if the bank had a really serious problem, that is, a problem not only with costs and earnings, but also with liquidity.

However, the merger scenario is not respected among banking experts. Economist and financial market expert Klaus Wellershoff (59) rhetorically asks, “Who does this really help?” he asks. Probably no, that should be the answer. Unless CS’s problems turn out to be bigger than previously known. But even in this case a merger with UBS is not absolutely necessary, according to Wellershoff: “With the rule too big to fail, big banks can easily be split into individual institutes. CS Switzerland can easily survive on its own.”

very little competition

Economist Adriel Jost (37) sees this in a similar way: “UBS and CS will likely be forced to merge by the authorities, and UBS will have to get the fillets from CS virtually for free.” And the problem areas of CS are transferred to some kind of bad bank with the help of the state and national bank. But even then, a giant banking system would emerge in Switzerland from which no one could profit.

“The merged, cloned big bank will become a semi-official state bank on which the Swiss economy will depend for better or worse,” Jost notes. “The normally very slow competition between banks in Switzerland will slow down again.” This does not benefit anyone, neither the customers nor the financial center.

Source :Blick

Share
Published by
Tim

Recent Posts

Terror suspect Chechen ‘hanged himself’ in Russian custody Egyptian President al-Sisi has been sworn in for a third term

On the same day of the terrorist attack on the Krokus City Hall in Moscow,…

1 year ago

Locals demand tourist tax for Tenerife: “Like a cancer consuming the island”

class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…

1 year ago

Agreement reached: this is how much Tuchel will receive for his departure from Bayern

class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…

1 year ago

Worst earthquake in 25 years in Taiwan +++ Number of deaths increased Is Russia running out of tanks? Now ‘Chinese coffins’ are used

At least seven people have been killed and 57 injured in severe earthquakes in the…

1 year ago

Now the moon should also have its own time (and its own clocks). These 11 photos and videos show just how intense the Taiwan earthquake was

The American space agency NASA would establish a uniform lunar time on behalf of the…

1 year ago

This is how the Swiss experienced the earthquake in Taiwan: “I saw a crack in the wall”

class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…

1 year ago