UBS Group AG will impose strict restrictions on bankers from Credit Suisse Group AG, including a ban on new clients from high-risk countries, the Financial Times reported Sunday, with the takeover set to close this week.
(Bloomberg) — UBS Group AG will impose strict restrictions on bankers from Credit Suisse Group AG, including a ban on new clients from high-risk countries, the Financial Times reported Sunday, with the takeover set to close this week.
In all, the list consists of almost two dozen “red lines” prohibiting Credit Suisse staff from a range of activities, a limitation meant to curb risk for UBS, the FT said. The agreement was the final hurdle for UBS before completing the acquisition.
Other restrictions on Credit Suisse bankers will include a ban on launching new products without approval from UBS managers and a requirement that they seek permission to extend loans backed by assets such as yachts, ships and real estate of more than $60 million, the newspaper said.
Credit Suisse Chief Executive Ulrich Koerner indicated to employees in a memo last week that the bank’s takeover by UBS will close on Monday, according to a memo seen by Bloomberg News. Spokespeople for Credit Suisse and UBS declined to comment on the memo.
Read more: Credit Suisse CEO Memo Signals UBS Deal to Close Monday
UBS’s acquisition of Credit Suisse is set to create a new European banking giant. It marks an end to a fraught few months for the industry, as the embattled Swiss lender struggled and failed to stay afloat.
UBS last week also sealed an agreement with the Swiss government to cover 9 billion francs ($9.9 billion) of losses it could incur from the rescue of Credit Suisse, clearing another last major hurdle to closing the historic takeover.
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