The United States Department of Justice opened an investigation against UBS and Credit Suisse for alleged negligence in allowing some Russian clients to evade sanctions imposed due to the annexation of Crimea and the invasion of Ukraine.

According to these sources, what initially began as subpoenas directed at a series of banks later evolved into an investigation focused on Credit Suisse. Likewise, the Department of Justice would also be analyzing possible failures on the part of UBS, which acquired Credit Suisse in a merger promoted by the Swiss State a few months ago.

In any case, the investigations are at an early stage and do not have to lead to charges or fines. In fact, no interviews or confrontations have yet been arranged with employees or managers, but information has been requested regarding the management of client accounts subject to international sanctions, not only due to the current war in Ukraine, but also due to those imposed on since the Russian annexation of Crimea in 2014.

After the news, UBS shares suffered a sudden drop in the stock market of up to 8 % at midday, which is why they stopped trading momentarily, although they resumed trading shortly after and ended up moderating their fall at the close of trading 2.9 1 %.

Source: dpa

(Reference image source: Paul Fiedler, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada US justice opened an investigation against UBS and Credit Suisse apareció primero en Bitfinance.

In a strategic move, former Swiss bank Credit Suisse confirmed the departure of Francesca McDonagh, its chief operating officer, in an announcement last Monday. This decision is part of the gradual process that will lead to the disappearance of the Credit Suisse brand before 2025, while it is integrated with UBS.

Francesca McDonagh, who previously served as CEO of Bank of Ireland from 2017 to 2022, took over in September 2022 as Credit Suisse embarked on a reform plan that ultimately failed to stabilize the bank. UBS urgently acquired Credit Suisse in May this year to avoid bankruptcy.

Other key positions at Credit Suisse remain unchanged so far, including André Helfenstein as CEO of the bank’s Swiss division and Simone Westerfeld as head of private clients, Swiss economic agency AWP reported.

As for the investment banking business in Switzerland, it will be led by two executives: Jens Haas, from Credit Suisse, and Martin Kesselring from UBS.

UBS anticipated at the end of August that the integration of Credit Suisse into its structure would lead to the loss of 3,000 jobs in Switzerland, of which a thousand would be affected in the short term and the remaining 2,000 in the coming years.

K. Tovar

Source: Bancaynegocios

(Reference image source: Ian Taylor, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Credit Suisse chief operating officer resigns apareció primero en Bitfinance.

UBS plans to cut around 3,000 jobs in Switzerland over the next few years as a result of the purchase of its rival Credit Suisse, agreed last March and completed in June, as announced by the entity’s CEO, Sergio Ermotti.

“In Switzerland, from a proactive point of view, we expect that around 3,000 jobs will be eliminated in the coming years,” the banker said in an interview with Bloomberg TV, specifying that around a thousand of this adjustment will correspond directly to the decision to integrate the Swiss bank of Credit Suisse.

In this sense, the CEO of UBS has defended that in the case of having chosen to sell this Credit Suisse business, a cut of some 600 jobs would have been required, while the other 2,000 positions that will be eliminated respond to the needs of the restructuring.

Beyond the situation in Switzerland, the banker has recognized that in the banking sector it is very difficult to undertake a restructuring and extract synergies without affecting the workforce, although he has stressed that a large element of the cost adjustment is due to real estate planning, to the rationalization of legal entities and the closure of IT platforms, while factors such as wear and tear, retirement and internal mobility must also be taken into account.

“Having said this, of course, we are going to have to take some proactive measures in terms of layoffs in the coming years,” he admitted, after the purchase of Credit Suisse fattened the entity’s workforce by around 45,000 employees, to around 120,000 workers.

In this way, the CEO of UBS has highlighted that, since the beginning of the year, Credit Suisse has already carried out a workforce reduction of 8,000 people as a result of the cost measures that Credit Suisse had initiated and that have been accelerating in the second quarter.

Source: dpa

(Reference image source: Bernadr Hermant, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada UBS to cut 3,000 jobs in Switzerland after Credit Suisse integration apareció primero en Bitfinance.

François Villeroy de Galhau, Governor of the Banque de France, told commercial bankers that the digital euro presents benefits for all concerned. During the World Conference of Official Institutions organized by the French multinational bank BNP Paribas, he stated that disintermediation is not underway.

Before addressing the topic of central bank digital currency (CBDC) for Europe, Villeroy de Galhau explained the reasons why the banking crisis at the beginning of the year did not affect the eurozone. He credited European regulation and supervision with keeping the banking system safe. However, he noted that UBS’s acquisition of Credit Suisse raised new questions about reliable crisis resolution. He mentioned that a framework for the ECB to provide “Eurosystem resolution liquidity” still needs to be established.

Villeroy de Galhau adopted a more persuasive tone when entering the “less consensual terrain” of the digital euro. He posed the rhetorical question: “If everything is going digital, why should central bank money be the only thing that remains on paper?”

He went on to explain that the digital euro would be a digital ticket, or “Cash+”. Its use would be optional, but would have the advantage of allowing the use of central bank money in electronic commerce transactions. Without him, he warned that sooner or later a crisis of confidence would arise. However, Villeroy de Galhau stressed that the digital euro would not lead to disintermediation, as central banks have no intention of opening private accounts.

The Governor of the Banque de France also highlighted that the wholesale CBDC would be a joint venture between commercial and central banks. They would share goals to encourage tokenized finance and securities, as well as facilitate cross-border interoperability.

He claimed that the digital euro would not be a competitor for commercial bank money and would help resist the advance of stablecoins, likely issued by non-European players. To the contrary, Villeroy de Galhau stated: “Our duty will most likely be to issue a CBDC, but our will is to issue it together with you, the commercial banks, and not against you.”

K. Tovar

Source: Banque-France

(Reference image source: Unsplash+)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada French expert assures that the Digital Euro is a necessity apareció primero en Bitfinance.

The Bank of England, the Bank of Japan, the European Central Bank (ECB) and the Swiss National Bank, in consultation with the United States Federal Reserve (Fed), jointly decided to reverse the frequency of their operations to inject dollar liquidity into view of the improvements in the financing conditions of the US currency.

In this way, the frequency of these operations to inject liquidity in dollars will once again be weekly instead of daily, as has been the case since the big central banks announced the change in frequency on March 19, coinciding with the Credit bailout. Suisse and the financial turmoil in the United States.

In a statement, the institutions have justified the return to the usual frequency of operations prior to the Credit Suisse rescue due to “the improvements in financing conditions in US dollars and the low demand in recent operations to provide liquidity in dollars”.

Likewise, the central banks assured that they remain ready to readjust the provision of liquidity in US dollars as justified by market conditions.

The swap lines between these central banks are permanent facilities available and serve as an important liquidity support to alleviate tensions in the global financing markets, which helps to mitigate the effects of such tensions on the supply of credit to households and companies. , both nationally and internationally.

K. Tovar

Source: Confidencial digital

(Reference image source: file)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Central banks return to the frequency of dollar injections prior to the Credit Suisse crisis apareció primero en Bitfinance.

The Swiss government defended its role in bailing out Credit Suisse Group through its takeover by rival UBS, saying intervention to prevent the collapse of the country’s second-biggest bank was necessary to avoid “disastrous” consequences.

“The Federal Council was forced to intervene to maintain stability both in Switzerland and internationally and to protect the economy”, President Alain Berset said during a special session of parliament in the Swiss capital Bern.

The Swiss Parliament will examine for three days from this week the government’s actions in the rescue of Credit Suisse, which crystallized on March 19 in the acquisition of the entity by UBS Group. The move, described by Berset as the best option to restore confidence in the markets, creates a banking giant whose assets are more than twice the size of the Swiss economy.

Parliament, like the shareholders, had no say in the agreement, although it was signed by a small group of high-level parliamentarians, the so-called financial delegation, so the transaction cannot be reversed.

At Credit Suisse’s general shareholders’ meeting last week, the bank’s top management apologized for failing to prevent the collapse of the 167-year-old entity, saying the hasty merger with UBS represented the only alternative for avoid a catastrophe, not only for Switzerland, but for the world economy.

K. Tovar

Source: Notiamerica

(Reference image source: Le Temps)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Swiss President in favor of Credit Suisse-UBS merger apareció primero en Bitfinance.

The Swiss bank UBS announced an offer to repurchase the debt securities with maturity of 2028 and 2032 issued last Friday, just a couple of days before the agreement for the acquisition of Credit Suisse, whose aggregate amount amounts to 2,750 million euros.

In this way, UBS wants to acquire the 1,500 million euros in bonds with fixed interest at 4.625% and maturing in March 2028, as well as the 1,250 million euros in debt with interest of 4.750% and maturing in March 2032, which were issued in both cases on March 17, 2023.

“The issuer offers to purchase the Notes at their respective reoffer price in light of the exceptional corporate actions announced on March 19, 2023, shortly after the issue date,” Switzerland’s largest bank said.

In this regard, UBS decided to launch this offering as a result of a prudent assessment of recent developments and its long-term commitment to its credit investors.

The offers will begin this Wednesday with an early expiration date of March 28, 2023, and a final expiration date of next April 4, unless extended, withdrawn or terminated at the sole discretion of the issuer.

K. Tovar

Source: Bloomberg

(Reference image source: file)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada UBS launches offer to repurchase Credit Suisse bonds apareció primero en Bitfinance.

The president of the Swiss Confederation, Alain Berset, has informed this Sunday of the purchase of the Swiss bank Credit Suisse by the UBS bank and has given an account that the Government guaranteed 100,000 million Swiss francs on Thursday for the bank’s liquidity.

Given the situation of instability and the lack of confidence in the entity, the Swiss government has decided to “support the purchase of Credit Suisse by UBS”, Berset pointed out at a press conference from the Federal Palace in Bern.

“The situation is known, Credit Suisse is one of the 30 systemic banks worldwide. It is one of the two largest banks in the country. It is therefore not only decisive for Switzerland, for our companies, for private customers, for its own employees, but also for the stability of the entire financial system,” added Berset.

The Swiss leader has referred to the “significant turbulence” suffered in recent days by various financial markets. “This turbulence destabilized the most fragile banks, and this was the case with Credit Suisse. Despite good capitalization, Credit Suisse has lost the confidence of the banks,” he explained.

Consequently, “in the face of such a loss of confidence, ensuring the supply of liquidity to a bank is one of the measures to be taken as the highest priority.” For this reason, the Government approved on Thursday night 50,000 million in immediate liquidity for Credit Suisse, which was already known. Now Berset has announced that the total guarantees amount to 100 billion Swiss francs.

Already on Friday the government came to the conclusion that “the necessary confidence could no longer be restored and that a quick solution was essential to guarantee stability.”

Source: dpa

(Reference image source: Claudio Schwarz, Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada UBS announces the purchase of Credit Suisse apareció primero en Bitfinance.

The negative effects of the bankruptcy of Silicon Valley Bank in the United States reached Europe. This Wednesday, Credit Suisse suffered a collapse of shares on the stock market and has requested a rescue from the Swiss Central Bank.

Despite the fact that the term panic in Europe is not mentioned, analysts foresee more collateral consequences of the SVB bankruptcy.

Shares of Credit Suisse, the only bank not under the supervision of the European Central Bank, had plunged at first 30 %, then 14 % on the Zurich Stock Exchange. However, hours later they rose 20 %.

The ECB, for its part, has initiated contact with financial institutions such as BBWA, CaixaBank, Sabadel, Santander to find out the degree of exposure to Credit Suisse. Fortunately, the exposure is low and they do not seem to be affected.

However, the outlook has turned murkier for Credit Suisse as the bank’s main shareholder, the Saudi National Bank, refused to provide further financial assistance.

European supervisors keep monitoring the world scenario, but particularly in the United States. Likewise, they are focused on other factors with an impact on the financial crisis, such as inflation and the rate hike planned by the ECB for this Thursday.

M.Pino

Source: 20minutos

(Reference image source: Boris Roessler, dpa)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram

La entrada Credit Suisse collapses on the stock market and asks the BCS for support apareció primero en Bitfinance.

The Credit Suisse banking group has decided to sell part of its business in the area of ​​trusts in subsidiaries located in the Bahamas, Guernsey and Lietchestein.

The decision was made known on Tuesday through a statement that clearly expresses Credit Suisse’s desire to detach itself from the past, with the sale of its business in tax havens.

The financial conglomerate will divest itself “of its Credit Suisse Trust (CST) unit. One part is bought by the firm Butterfield (the business in Singapore, Bahamas and Guernsey) and another part by the Gasser law firm, which will keep the rest of the business of the Credit Suisse division to manage it from Liechtenstein”, as they have indicated to the media.

The scandals of recent years about the use of “shell companies” to evade taxes that have involved Credit Suisse led to this decision.

For the Swiss bank, 2022 should be a year of transition towards a more transparent performance, away from lawsuits and lawsuits that cause collateral damage.

On the other hand, Credit Suisse aspires to a restructuring, amid rumors of possible purchase or dissolution of the group. In any case, they are currently focused on reducing legal risks.

M.Pino

Click the link to subscribe for free to our news and media group on Telegram: https://t.me/G_ELSUMARIO_News

Source: cincodias

La entrada Credit Suisse sells part of the business in tax havens apareció primero en Bitfinance.