HomeBusinessCompaniesUBS CEO warns staff rival Credit Suisse 'remain our competitor'

UBS CEO warns staff rival Credit Suisse ‘remain our competitor’

The Business Times says that Ralph Hamers, the CEO of UBS Group, has told his employees not to talk about business with their counterparts at Credit Suisse Group after it was announced that the Swiss National Bank would lend Credit Suisse up to $54 billion.This comes after the announcement of their government-brokered merger. Please keep in mind that Credit Suisse is still our competition until this acquisition is complete, as CEO Ralph Hamers has warned UBS staff in a memo. We are not allowed to interact with their workers about business or take any actions that might be construed as a move towards a company merger.

The document was released after UBS and Credit Suisse reached a $3 billion acquisition agreement during weekend crisis discussions. Due to its importance to the banking system, Credit Suisse is one of the 30 banks in the world that are regarded as being too big to fail. Yet, the 167-year-old bank has been having trouble lately due to losses and other problems like accusations of money laundering.

The largest bank in Switzerland, UBS, has agreed to purchase Credit Suisse for 3 billion Swiss francs ($3.3 billion), in what UBS chairman Colm Kelleher has called an “emergency rescue.”

The agreement, which was made quickly over the weekend during a crisis meeting, is meant to deal with the loss of clients and the sharp drop in Credit Suisse’s stocks and bonds over the past week, which were both caused by the failure of smaller US banks.

Even though the Swiss National Bank gave the markets a $54 billion (£44.5 billion) emergency lifeline, the markets were still worried. Credit Suisse’s shares dropped by 24%, which caused a bigger sell-off in European markets.While regulators and management think about Credit Suisse’s future, officials at the Bank of England have said they talk to their counterparts at the Swiss National Bank often.

The share price of Credit Suisse fell by as much as 21% in recent weeks, and trading in the stock was suspended as a result. The bank disclosed last week that it had found “significant flaws” in the ways it planned to present financial information for the years 2021 and 2022. Before joining Credit Suisse in 2021 to oversee the bank’s turnaround efforts, Credit Suisse Chairman Axel Lehmann worked at UBS for more than ten years.

Ulrich Korner is the CEO of Credit Suisse. Before leaving UBS to join Credit Suisse, he also worked there.At Credit Suisse, he helped save the asset management department before becoming CEO and turning the whole bank around.

In response, Credit Suisse’s biggest backer, the Saudi National Bank, said it would not buy any more shares of the company.Two mid-sized US banks were victims of the current banking industry confidence crisis, and now Credit Suisse, one of the world’s top 30 most significant banks, has joined them.

Recent bank failures, including that of Credit Suisse, are due to a big rise in interest rates on the international level.Because of this, investors are worried, and the value of the safe investments that banks hold has gone down. This has caused the share prices of all banks to go down.The hardest-hit banks by this event are those that are thought to be the weakest.

According to a BBC report, UBS Chairman Colm Kelleher said that Credit Suisse’s investment banking unit would be shut down, but no decision had been made yet about job losses. Before doing anything, Kelleher said that the situation should be looked at carefully, and the procedure should be done carefully.

Tavishi Bhalla
Tavishi Bhalla
Tavishi bhalla is a student of bachelor's of science in Institute of Home Economic. She has strong communication and content writing skills. Tavishi is currently working as a journalist at BusinessHeadline.in and can be contacted tavishi@businessheadline.in.
- Advertisment -


- Advertisment -

Most Popular