Might 23 (Reuters) – UBS Group AG (UBSG.S) mentioned on Tuesday it was in negotiations with Swiss authorities about loss protections associated to its takeover of Credit score Suisse Group AG (CSGN.S) and its regulatory capital necessities.
The disclosure underscores how some elements of the tie-up between the 2 banks, organized swiftly over a weekend in mid-March by the Swiss authorities to stave off a broader banking disaster, have but to be ironed out.
The Swiss authorities agreed on the time to shoulder as much as 9 billion Swiss francs ($10.12 billion) in potential losses from the deal and provided liquidity help of as much as 100 billion Swiss francs.
Nonetheless a definitive loss safety settlement stays underneath negotiation, UBS mentioned in a U.S. regulatory submitting on Tuesday.
UBS mentioned within the submitting that it anticipated the principle phrases of the loss safety settlement to be agreed previous to the acquisition of Credit score Suisse being accomplished.
The financial institution mentioned it was additionally in talks with the Swiss regulator FINMA about “sure prudential capital necessities, threat weighted belongings measures, and different capital and liquidity necessities for the mixed agency”, however didn’t count on these to be finalised earlier than the deal closes.
UBS has mentioned it expects to finish the acquisition of Credit score Suisse, which got here to the brink of collapse in March following a string of economic scandals and mismanagement, by early June.
($1 = 0.8889 Swiss francs)
Reporting by Manya Saini in Bengaluru
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