The Swiss government has urged UBS to buy its rival for $3.25 billion after concerns over its financial condition following the collapse of three US banks in March, in addition to a series of scandals that have plagued Credit Suisse these last years.
“It is absolutely clear that this situation has not happened in the last six weeks, but in the last six or seven years,” said Sergio Ermotti, chief executive of UBS, who returned to work. with Switzerland’s largest bank last month to resume the merger.
And the Swiss news agency “ITS” quoted Ermotti as saying at a Swiss media forum in Lucerne that “this thorough investigation should go back a long time”.
He added that a full review of the causes of Credit Suisse’s problems was important because of how quickly it was agreed to buy it.
Ermotti pointed out that “many things that are happening now would have taken a year under normal circumstances.”
Credit Suisse has been rocked by a series of scandals in recent years, including the bankruptcy of British financial firm Greensill.
UBC agreed to buy damaged local rival Credit Suisse, backed by hefty guarantees from the Swiss government.
The acquisition will create a super bank responsible for $5 trillion in investments, Ermoti said, hinting the merger could be completed by the end of May.
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