UBS is still cleaning up from the last crisis. Now it must tackle Credit Suisse | CNN Business

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UBS is still dealing with the fallout from the 2008 global financial crisis even as it prepares to take on the enormous challenge of absorbing Credit Suisse

Switzerland’s biggest lender said Tuesday it had set aside $665 million to cover litigation costs relating to past sales of US mortgage-backed securities, halving its profit for the first quarter just weeks before it expects to complete the emergency takeover of its stricken rival. As UBS\n \n works to get its own house in order, it must also execute on the first-of-its-kind merger of two global banks while continuing to serve customers on a daily basis.

Clients in ‘wait-and-see’ mode UBS said $7 billion had flowed into its wealth business after a March 19 deal to buy Credit Suisse, orchestrated by Swiss authorities. That bump in the last 10 days of March accounted for a quarter of net new inflows into its wealth management unit in the first three months of the year. Despite reporting strong inflows in all regions, Ermotti said “challenging” economic conditions had left many clients adopting a “wait-and-see attitude.

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