UBS to Restrict Credit Suisse Bankers After Takeover
The bankers of Credit Suisse (CSGN.S) will be subjected to tighter regulations introduced by UBS AG (UBSG.S), which will include an outright ban on new clients from high-risk nations.
Credit Suisse Group AG will be expected to conduct strict inspections on its bankers, starting with the aim of preventing new clients from high-risk countries from opening accounts and restricting the amount of complex financial products that can be offered to them. Following the financial crisis, it was reported that UBS AG would close its emergency takeover of Credit Suisse in the wake of the financial crisis on Monday, June 12th.
The staff of Credit Suisse has been restricted from a range of activities due to nearly two dozen “red lines” drawn up by UBS. These red lines include taking on clients from Libya, Sudan, and Venezuela, as well as developing new products without receiving management approval from UBS executives.
As a result, Ukrainian politicians and state-owned corporations will also be banned as a measure to prevent money laundering, according to the report. UBS may incur losses of up to 9 billion Swiss francs ($9.96 billion) if the sale of assets belonging to its rival exceeds the amount of 5 billion Swiss francs the lender must cover on its own. As far as Credit Suisse and UBS are concerned, the latter has not responded immediately to inquiries for comment.
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