Switzerland investigate UBS and Credit Suisse deal

The federal prosecutor is scrutinising ‘numerous aspects of events around Credit Suisse’ to ‘identify any crimes’. UBS has declined to comment on the matter, the publication states.

The deal was proposed following the collapse of Silicon Valley Bank in the US, which triggered an alarm in the global banking sector. Credit Suisse was impacted by this collapse, with shares falling 33% at one point, and the Swiss central bank had to provide a 50 billion Swiss franc (EUR 50 billion) lifeline.

The acquisition has already received the backing of the Swiss Federal Department of Finance, Swiss supervisory authority Finma, and the Swiss National Bank. However, the deal has not been popular and is expected to result in job losses as UBS pursues an EUR 8 billion reduction in annual costs by 2027.

Swiss regulators have also come under fire for their handling of the deal. Finma has been criticised after wiping out EUR 15.6 billion of AT1 Credit Suisse bonds and only protecting equity holders.

The outcome of the UBS and Credit Suisse investigation

The investigation could potentially delay or halt the UBS/Credit Suisse deal, which is significant for both banks as they face increasing competition from fintech companies and other non-bank financial players. The merger would help them to achieve economies of scale and compete more effectively in the asset management market.

The outcome of the investigation remains uncertain, and the market will be watching closely for any developments. The investigation is a reminder that regulatory scrutiny is becoming increasingly stringent, and banks need to ensure that their deals are above board to avoid potential legal repercussions.

In conclusion, the investigation into the UBS/Credit Suisse deal is a significant development in the Swiss banking industry, and the market will be closely monitoring the situation. The outcome of the investigation could have far-reaching consequences for both banks and the wider banking industry, Funds Europe concluded.

Swiss authorities investigate UBS and Credit Suisse deal

The outcome of the UBS and Credit Suisse investigation