UBS and Credit Suisse Chairs to Discuss Potential Bank Merger
The chairmen of the boards of directors of UBS Group AG and Credit Suisse Group AG are discussing the possibility of a merger to create one of the largest banks in Europe, reports Swiss financial publication Inside Paradeplatz, citing knowledgeable sources.
According to the newspaper, the main initiator of the project, called « Signal », is the chairman of the board of directors of UBS Axel Weber. He is working on it with his Credit Suisse colleague Urs Rohner.
Weber has already discussed the idea of combining banks with Swiss Finance Minister. The Swiss financial regulator (Financial Market Supervisory Authority, FINMA) is also aware of these plans, the report says.
A merger agreement could be reached early next year, and by the end of 2021, the combined group should be operational. Weber expects to chair the new bank’s board of directors, while the chief executive officer is expected to be from Credit Suisse.
The merger could lead to a reduction of 10% to 20% of the staff of banks, or at least 15 thousand jobs worldwide, writes Inside Paradeplatz. Credit Suisse currently employs almost 50 thousand people, including about 15 thousand in Switzerland, UBS – almost 70 thousand people worldwide and about 20 thousand in Switzerland.