What’s Next after UBS Group’s Acquisition of Credit Suisse?

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**Swiss President Alain Berset** said that the Federal Council welcomed the acquisition of **Credit Suisse by UBS** because it was “very important not only for Switzerland, but also for the international financial center in terms of restoring confidence.

According to Berse, Credit Suisse had good capitalization, but “customers and investors had lost confidence” in the bank. The authorities decided to give both banks a liquidity guarantee of 100 billion Swiss francs ($108 billion) and a loan of 50 billion francs ($54 billion).

Credit Suisse was bought for 3 billion francs ($3.24 billion).

**Swiss Finance Minister Karin Keller-Zutter** said the government had carried out the necessary legal framework to bail out the bank. It gave the country’s National Bank (SNB) additional default guarantees on liquidity loans. The authorities also gave UBS $9 billion Swiss francs (about $10 billion) to cover potential losses the bank would incur as part of the deal.

“A default by a systemically important bank would have had unpredictable consequences both in Switzerland and abroad. This is where Switzerland had to take responsibility beyond its borders,” Keller-Zutter noted.

In mid-March, **Credit Suisse shares plummeted** a record 30.8 percent, falling 24.2 percent at the close of trading. After that, the bank asked SNB to give it a credit of 50 billion Swiss francs ($54 billion).

Soon it became known that UBS and Credit Suisse will begin merger talks with the mediation of SNB and the financial regulator Finma. Initially, the buyer offered $1 billion for the troubled bank, and then increased the offer to $2 billion. The market value of Credit Suisse as of March 17 was $8 billion.

If the deal had not taken place, the Swiss authorities could have fully or partially nationalized CS.

Credit Suisse CEO Axel Lehmann believes the bank was affected by the bankruptcy of U.S. Silicon Valley Bank, Signature Bank, and Silvergate Bank. The former declared bankruptcy on March 10. SVB’s collapse was the largest since the 2008 financial crisis. Before it, Silvergate Bank closed and a few days later Signature Bank of New York.

In the fall of 2022, it was reported that Credit Suisse would begin to cut its staff in stages and conduct restructuring because of the mass withdrawal of money by clients.

In this video, I will tell you about the shocking latest events at UBS group and how you can make money on it, when to invest so as not to lose, and much more. Don’t forget to subscribe and watch to the end!

**UBS group** is a Swiss bank headquartered in Zurich. The bank was founded in 1862 and has since offered a wide range of financial services including Asset Management, Investment Banking, and Retail banking. Today, UBS group is one of the largest banks in the world and employs more than 68,000 people in over 50 countries worldwide.

The bank is known for its expertise in wealth management and serves some of the wealthiest clients in the world. In 2020, UBS group announced a new strategy focused on its three core businesses: wealth management, investment banking, and asset management. The bank also aims to be a leader in sustainable investing by 2025 and to be carbon neutral by 2030. The UBS Optimus Foundation supports projects to improve the health and education of children around the world.

Recent events: UBS group has agreed to buy **Credit Suisse** and mark a government-brokered deal. As first reported by the Financial Times and Bloomberg News Agency, the Swiss government, representatives of both banks, and regulators confirmed UBS’s acquisition of troubled Credit Suisse for 3 billion francs. According to the report, Credit Suisse shareholders will get one UBS share for 22.48 Credit Suisse shares. The whole thing is expected to be completed by the end of the year.

To reduce possible risks and potential losses for UBS, Switzerland is providing a guarantee of 9 billion francs. The Swiss National Bank has also agreed to offer UBS a 100 billion francs liquidity line as part of the transaction. UBS chairman Colm Keller announced that Credit Suisse’s Investment Banking business will be significantly scaled back and aligned with UBS’s conservative risk culture. The acquisition strengthens UBS’s position as a leading global wealth manager and offers significant cost savings of more than eight billion dollars annually through 2027. The merger is a better alternative to nationalization and will help address the massive plunge in Credit Suisse’s shares and bonds following last week’s collapse.

To implement this plan, a new law was passed in Switzerland over the weekend that will allow the decision to go through without shareholder approval. This development is unprecedented and calls into question Switzerland’s reputation as a safe and regulated country. It represents a significant restriction of property rights and shakes investor confidence. It is likely that shareholders will take legal action, resulting in negative headlines.

As a result of these regulatory mistakes, UBS will be able to significantly strengthen its dominant position in Switzerland with government support and unfavorable terms. Unfortunately, this merger will also be bitter for many thousands of employees of both banks as there will be massive job cuts due to business overlaps.

By the way, in the course of the financial crisis of 2008, UBS also had to be rescued by the Swiss government at that time, which led to a significant drop in the share price. This fell from 80 francs down to 10 francs. Since then, the UBS share price has largely moved sideways.

**UBS Group shares** are listed on the SIX Swiss Exchange in Zurich and on the New York Stock Exchange. Its stock ticker symbols are ubsg and UBS. The company is part of the Swiss Market Index, an index of the largest and most liquid equity companies in Switzerland. In 2020, the shares were exposed to strong fluctuations due to uncertainty in global financial markets and the impact of the pandemic. The share price reached a low of around seven francs 80 in March 2020 but recovered to pre-pandemic levels later in the year. If you look a little closer at the price chart, you will see that the share price has always fluctuated between 10 and 17 to 20 francs since 2009 until today. These price movements offer speculators a good opportunity to get in at 10 francs and get out at around 16 to 17 francs, which equates to a gain of around 60 percent. Depending on the share price, it has taken about two years so far to reach the exit price. However, given recent events, I would wait and see how things develop for now. In general, though, I think the company is interesting for long-term investing.

UBS Group has announced its dividend for 2023, which stands at 27.5 centimes per share. This dividend represents a yield of about 3 percent based on the current share price. To be eligible for the dividend payout this year, you should own shares by April 12th.

Subscribe to our channel for more updates on stocks and investments. Do you know which stocks have the highest dividend yield? Watch the video on my channel.

*Disclaimer: This video description is for informational purposes only and should not be considered financial advice. Please do your own research before making any investment decisions.*

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Swiss President Alain Berset said that the Federal Council welcomed the acquisition of Credit Suisse by UBS because it was “very important not only for Switzerland, but also for the international financial center in terms of restoring confidence.

According to Berse, Credit Suisse had good capitalization, but “customers and investors had lost confidence” in the bank. The authorities decided to give both banks a liquidity guarantee of 100 billion Swiss francs ($108 billion) and a loan of 50 billion francs ($54 billion).

Credit Suisse was bought for 3 billion francs ($3.24 billion).

Swiss Finance Minister Karin Keller-Zutter said the government had carried out the necessary legal framework to bail out the bank. It gave the country’s National Bank (SNB) additional default guarantees on liquidity loans. The authorities also gave UBS $9 billion Swiss francs (about $10 billion) to cover potential losses the bank would incur as part of the deal.

“A default by a systemically important bank would have had unpredictable consequences both in Switzerland and abroad. This is where Switzerland had to take responsibility beyond its borders,” Keller-Zutter noted.

In mid-March, Credit Suisse shares plummeted a record 30.8 percent, falling 24.2 percent at the close of trading. After that the bank asked SNB to give it a credit of 50 billion Swiss francs ($54 billion).

Soon it became known that UBS and Credit Suisse will begin merger talks with the mediation of SNB and the financial regulator Finma. Initially, the buyer offered $1 billion for the troubled bank, and then increased the offer to $2 billion. The market value of Credit Suisse as of March 17 was $8 billion.

If the deal had not taken place, the Swiss authorities could have fully or partially nationalized CS.

Credit Suisse CEO Axel Lehmann believes the bank was affected by the bankruptcy of U.S. Silicon Valley Bank, Signature Bank and Silvergate Bank. The former declared bankruptcy on March 10. SVB’s collapse was the largest since the 2008 financial crisis. Before it, Silvergate Bank closed and a few days later Signature Bank of New York.

In the fall of 2022 it was reported that Credit Suisse would begin to cut its staff in stages and conduct restructuring because of the mass withdrawal of money by clients.