Swiss bank UBS said that it has set aside $4 billion to cover potential legal and regulatory costs from its acquisition of Credit Suisse, and that it is expecting to record other asset write-downs. Part of the merger deal, which was struck in March, involved Switzerland’s financial regulator electing to wipe out around $17 billion of Credit Suisse’s additional tier-1 securities. Shareholders of Credit Suisse, which rank below other creditors, will be given more than $3 billion of UBS shares as part of the deal. Credit Suisse suffered massive customer withdrawals before UBS’s takeover, the troubled bank’s most recent quarterly earnings report showed. In the fourth quarter of 2022, Credit Suisse’s customer deposits had declined by $154 billion and its net asset outflows were $123 billion.

Source: Wall Street Journal May 17, 2023 13:25 UTC