UBS Group AG Chief Executive Officer Sergio Ermotti said that the Swiss government and Central Bank are “exceptionally unlikely” to take any losses on the takeover of Credit Suisse Group AG, his strongest comments yet on state support.
(Bloomberg) — UBS Group AG Chief Executive Officer Sergio Ermotti said that the Swiss government and Central Bank are “exceptionally unlikely” to take any losses on the takeover of Credit Suisse Group AG, his strongest comments yet on state support.
Ermotti reiterated earlier comments this month that the bank will “do everything” within its power to avoid a hit for taxpayers as part of the government-backed rescue of its former rival in March. He spoke at a Swiss media forum in Lucerne on Friday.
As part of the takeover, the Swiss government agreed to absorb about 9 billion francs ($10.1 billion) of losses that UBS might take. The Swiss National Bank is also giving the bank a 100 billion-franc liquidity line as part of the deal, which will see UBS pare back large parts of Credit Suisse’s investment bank.
Ermotti said the lender’s focus is on closing the deal as well as integrating the investment banks and the future of Credit Suisse’s local unit, the Swiss Universal Bank. The bank had initially said it wanted to keep that business, but has now said it’s open to all options.
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