Zurich, June 12 (BNA) UBS Bank (UBSG.S) said Monday that it has completed its emergency takeover of local rival Credit Suisse (CSGN.S), creating a giant Swiss bank with a $1.6 trillion balance sheet and greater power. in wealth management.
Announcing the largest banking deal since the 2008 global financial crisis, UBS CEO Sergio Ermotti and Chairman Colm Kelleher said it would create challenges but also “many opportunities” for customers, employees, shareholders and Switzerland, Reuters reported.
The group will oversee $5 trillion in assets, giving UBS a leading position in key markets that it would have taken years to grow in size and reach. The merger also ended Credit Suisse’s 167-year history, which has been marred by scandals and losses in recent years.
Credit Suisse shares were up 0.4% in the latest trading day, while UBS was also up about 0.4% in the middle of the trading day.
The two banks jointly employ 120,000 employees worldwide, although UBS has already said it will cut jobs to reduce costs and take advantage of synergies.
UBS announced a series of management changes including in Credit Suisse AG, which is now a subsidiary that will be run separately.
Of the more than 160 leaders confirmed or appointed today at UBS, more than a fifth have joined from Credit Suisse, according to a UBS spokesperson.
Andre Helfenstein, Head of Domestic Business for Credit Suisse, will remain in his role. UBS said, it is examining all strategic options for the unit.
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