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 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.
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