Credit Suisse, UBS and regulators in rush to seal historic merger

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UBS and regulators rush to seal Credit Suisse takeover via IrishTimesBiz

Credit Suisse set aside 1.2 billion Swiss Francs in legal provisions in 2022 and warned that as yet unresolved lawsuits and regulatory probes could add another 1.2 billion Swiss Francs.

This failed to arrest a slide in its share price, which has fallen to record lows after its largest investor ruled out providing any more capital and its chair admitted that an exodus of wealth management clients had continued. The former has a market capitalisation of $56.6 billion , while Credit Suisse closed trading on Friday with a value of $8 billion. In 2022, UBS generated $7.6 billion of profit, whereas Credit Suisse made a $7.9 billion loss, effectively wiping out the entire previous decade’s earnings.

The fact that the SNB and Finma favour a Swiss solution has deterred other potential bidders. US investment giant BlackRock had drawn up a rival approach, evaluated a number of options and talked to other potential investors, according to people briefed about the matter.

 

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