class=”sc-29f61514-0 kHgAwW”>
The so-called closure will take place in a few days, after which UBS will be able to formally take over Credit Suisse. But there won’t be much clarity yet. UBS boss Sergio Ermotti (63) has announced that all international areas of the two banks will be merged. But what should happen in Switzerland remains unclear.
UBS wants to take time after the summer break to analyze options. For financial center professionals, Ermotti takes too much time: “He should say what he wants to do right after closing,” says an insider. Specifically: “He should now pour pure wine and say that there is nothing left of CS. This UBS will go through the full integration baseline scenario.”
UBS’s calculation that the political smoke will dissipate if you wait long enough may fail. Shortly after the memorable 19 March, when the decision was made to force the big banks into marriage, FDP Chairman Thierry Burkart (47) exposed himself, saying that Credit Suisse’s Swiss business should be separated from the rest.
Second largest bank for the competition
“I still think so today,” says Burkart two and a half months later. “A separate Credit Suisse Switzerland, Switzerland is better for SMEs and bank workers,” he says. Companies need a second commercial bank with an international network. It’s the only way to provide competition that is no longer with a single big bank. According to Burkart, there is no other bank that can breach.
“If CS Switzerland continues to exist, thousands of jobs will be protected,” he states. An outsourced CS Switzerland would also be better for the state, as the systemic risks would be lower should UBS go bankrupt, the Aargau Council of States said.
The starting position for Burkart has not changed since the merger announcement: “The combined major bank UBS/CS is too big for Switzerland.” The politician counts on UBS to surrender and leave CS Switzerland. If UBS does not do this, the big bank is threatened with the regulatory hammer: “If UBS does not leave CS Switzerland, it should be feared that politicians will regulate the financial center much more harshly.”
The pressure is huge: CH Media on Tuesday published a SP article calling for a massive reduction in total assets of up to CHF 400 billion, with a massive drop of over 70 percent. The party argues that the merged bank is too big for Switzerland. Mitte’s boss, Gerhard Pfister, is starting with equity and wants the unweighted equity ratio to quadruple to 20 percent.
CS Switzerland boss lobbying for split
Those familiar with the financial center would object that an independent CS Switzerland would have too small a balance sheet to make large corporate loans. CS Switzerland also lacks the necessary international network. Burkart said, “Of course I know these concerns. However, I believe that the right solutions can be found.
Senior representatives of CS Switzerland see things in a similar way. CS Switzerland boss André Helfenstein (56) and corporate client boss Andreas Gerber (54) are holding intense conversations with entrepreneurs and executives behind the scenes, a company boss contacted told SonntagsBlick. “They are trying to convince us that going alone with CS Switzerland is the best thing for Switzerland.”
The company director, who is skeptical of the purpose of an independent CS Switzerland, says Helfenstein and Gerber will therefore undermine UBS’s deal and its interests. Helfenstein and Gerber were not available for an interview. A CS spokesperson declined to comment.
Sergio Ermotti, in one of his first statements after returning to the head of UBS, said that the merger should be analyzed according to facts, not emotions. In the meantime, it should be said that feelings are rising on all sides about the independence of Credit Suisse.
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.
