Ubs Completes Its Takeover Of Credit Suisse

 Ubs Completes Its Takeover Of Credit Suisse

UBS Completes Its Takeover Of Credit Suisse

On Monday, USB finally completed its takeover of Credit Suisse, marking a new area in the wealth management and banking sector. This takeover has created a new giant bank with a $1.6 trillion worth of balance sheet and enormous power in the wealth management space.

According to experts, this is one of the biggest deals since the financial crisis of 2008. That's why even the CEO of UBS made it clear that the merger will create challenges for them. However, he also added that it would lead to a lot of opportunities for everyone involved, including the shareholders, employees, and clients.

UBS To Manage $5 Trillion Of Assets

The available data suggest that the UBS group will be overseeing assets worth $5 trillion making it a major player in wealth management. Without the merger, it would have taken several years for the UBS group to reach that size.

But one of the downsides of this merger that's ignored by most is an end to the 167 years history of Credit Suisse. In its last years, the Credit Suisse company was marred by losses and scandals.

In 2007, Credit Suisse shares reached their peak price at $90.14 (82 CHF) but it only went downhills from there. The financial institute had to face heavy losses, scandals, and a lot of problems over the next years which finally pushed it to its end.

During the last day of trading, the shares of Credit Suisse inched 1% higher which marked the last time company spend on the stock markets. Similarly, the UBS group which took over Credit Suisse gained a 0.8% upside.

The two banks collectively employ around 120K people around the globe but it seems that number will go down in the next few weeks or months at best.

In addition, UBS also announced some major management changes at Credit Suisse in order to improve its performance.

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