Yahoo Finance Head of Credit Suisse talks of his profound sadness over UBS takeover
The chief executive of stricken Credit Suisse has said that he shares its employees’ “profound sadness and disappointment” after its emergency takeover by rival UBS earlier this week.
UBS took over Credit Suisse on Sunday in a £2.65bn deal forced through by Swiss authorities amid fears that a failure to protect depositors would kickstart a global banking crisis.
In a letter to staff seen by the Guardian, the Credit Suisse group chief executive, Ulrich Körner, said it had “been an emotional and challenging week for all of us. He thanked employees for their “unwavering commitment and for the support you have given our clients and each other during this difficult time”.
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Korner said the deal with UBS had been the “only viable option” and it “brings both stability and certainty to our clients and to the market”.
Switzerland’s government said earlier this week that Credit Suisse was ordered to temporarily suspend bonus payments awarded in the years up to 2022.
In the letter, Körner acknowledged concerns about the ban among its 45,000-strong workforce and said discussions concerning the matter with Swiss authorities were “ongoing”. There are more than 5,000 Credit Suisse and about 6,000 UBS staff based in London. “We do not yet have an answer, but we know how important this is for many of you,” he said.
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Korner said that a deal of the scale of the UBS merger would typically take six months to agree, but the emergency transaction had taken just four days, leaving many practicalities unresolved.
He said: “Until the transaction legally closes later this year, we remain two independent banks and must continue to work that way. Please stay focused on our clients and continue to provide them with the outstanding service they expect from us.”
Körner, who become chief executive in July 2022 after former boss Thomas Gottstein was ousted, said he remains “fully committed” to the bank. “I will be at your side as we work to make the transaction a success,” he said.
The UBS deal was agreed after it became clear the $54bn loan to Credit Suisse from the Swiss central bank had failed to halt a sharp slide in its share price.
Credit Suisse’s travails have sent jitters through markets. On Friday, banking stocks suffered a sharp sell-off, including Deutsche Bank, which fell as much as 14% before recovering some ground.
