UBS was 'rushed into' unwanted Credit Suisse rescue merger

UBS Group was reportedly rushed into buying Credit Suisse Group in a deal it did not want, as a global bank crisis worsened Credit Suisse’s finances and prompted authorities to take swift action, according to a regulatory filing. In a Tuesday filing to the US Securities and Exchange Commission, UBS told investors it had less than four days to conduct due diligence given the “emergency circumstances,” Reuters reported. The group has estimated a hit of about $17 billion from the Credit Suisse takeover. The biggest bank of Switzerland had agreed to buy its smaller rival after the latter had endured a difficult year. Credit Suisse’s involvement in a series of corporate collapses spooked clients who began withdrawing their money, a trend that accelerated when US bank failures sparked fear of a broader banking crisis. The wave of deposit outflows and a major share-price drop prompted Switzerland’s central bank on March 15 to offer Credit Suisse liquidity assistance. UBS and Credit Suisse later signed a confidentiality agreement upon which the former began due diligence, the UBS filing showed. On March 19, the Swiss National Bank announced UBS would buy Credit Suisse for 3 billion Swiss francs ($3.4 billion) in stock and assume a loss of as much as 5 billion francs stemming from winding down part of the business, Reuters reported. The final price was raised from an initial 1 billion francs, the filing showed. Interest from UBS in buying Credit Suisse began in October when the ad hoc Strategy Committee of its board of directors reviewed its rival’s distressed situation, according to the filing. By then, Credit Suisse was experiencing deposit and net asset outflows at levels substantially exceeding rates of the July-September quarter, UBS said. (With inputs from Reuters) Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.