UBS is in line to make an almost $35bn (£28bn) gain after its emergency takeover of Credit Suisse – but has said it will take a $17bn hit from costs related to the rushed rescue deal. The Swiss lender has said it will make gains of $34.8bn after taking on Credit Suisse, based on an initial assessment of data until the end of last year, according to a regulatory filing. A group of Credit Suisse investors who lost bonds worth more than CHF4.5bn (£4bn) are already suing Switzerland’s financial regulator over its decision to wipe out risky bank debt as part of the government-brokered takeover deal in March. “The extent to which UBS was a reluctant partner in the deal to buy Credit Suisse has become clear,” said Susannah Streeter, the head of money and markets at Hargreaves Lansdown. Shares in UBS, which have been under pressure since the deal to avoid Credit Suisse facing bankruptcy, were flat in early trading in Zurich on Wednesday.

Source: The Guardian May 18, 2023 03:17 UTC