UBS Hopes To Avoid $10B Credit Suisse Backstop, Plans To Recruit Wealth Managers
Portfolio Pulse from Akanksha Bakshi
UBS Group has signed a loss protection agreement with the Swiss government regarding its acquisition of Credit Suisse. UBS will cover potential losses of the first CHF 5 billion, with the Swiss government covering any losses exceeding this up to CHF 9 billion. The bank is also planning a US recruitment drive for wealth managers, having already hired 50 financial advisers from various firms in H1 2021. UBS shares are trading higher by 0.69% at $20.41 premarket on Monday.
July 03, 2023 | 3:24 pm
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POSITIVE IMPACT
UBS Group is acquiring Credit Suisse and has signed a loss protection agreement with the Swiss government. This could provide stability for Credit Suisse.
The acquisition by UBS and the loss protection agreement with the Swiss government could provide stability for Credit Suisse, which could be seen as positive by investors. Hence, the stock is likely to go up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
UBS has signed a loss protection agreement with the Swiss government for its acquisition of Credit Suisse, and is planning a US recruitment drive for wealth managers. Its shares are trading higher premarket.
The news of the loss protection agreement provides a safety net for UBS in its acquisition of Credit Suisse, which could boost investor confidence. The planned recruitment drive indicates growth and expansion, which is also positive for the stock. Hence, the stock is likely to go up in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100