Credit Suisse CEO Hints At Finalization Of UBS Deal On Monday
Ulrich Koerner (CEO of Credit Suisse) has recently sent an internal memo that hints towards the closure of the UBS deal. It's been months since the emergency takeover of Credit Suisse by UBS happened, but the deal is yet to be finalized.
But according to the recent media reports, it appears that the deal will be closed on Monday. Once this deal is closed, it will become one of the biggest takeovers in the financial sector.
Deal With Bring Exciting Future
The CEO made it clear that Monday will lead to an end of a significant chapter in the bank's history. However, it will also be the beginning of an exciting and new future for Credit Suisse.
The legal close of the said deal is expected on Monday, which will serve as a milestone toward answering a lot of questions.
Based on this available information, it appears that the earliest date for the closure of this deal is now set within the next few days.
Earlier, Switzerland's government also made it clear that they are ready to offer $9.96 billion 9 billion CHF) as a guarantee to the UBS. This guarantee by the Swiss Government will allow the bank to avoid loses arising from the sale of Credit Suisse assets. However, any losses that exceed the 5 billion CHF limit must be covered by the UBS itself.
When the Credit Suisse and the UBS were approached for comments, they were not available. To be precise, UBS outright declined to comment on this issue. Similarly, Credit Suisse was also not immediately available for a response.
For the most part, it appears that UBS will opt for selling the loss-making operations of the Credit Suisse to other financial institutions. However, that can only be done once this mega-deal between the two banks comes to a closure.