UBS may delay results after Credit Suisse rescue: report
The takeover was quickly put together in March after the failure of two U.S. banks and long-running troubles at Credit Suisse
Payne Capital Management President Ryan Payne and Bullseye American Ingenuity Fund portfolio manager Adam Johnson discuss the prospects of recession, the return of Sergio Ermotti as UBS CEO and the markets.
UBS may reportedly decide to push back its quarterly results as it works on the takeover of Credit Suisse.
The bank is due to report its results on July 25.
Due to the financial and political complexities of taking over Credit Suisse, results may be delayed until the end of August, according to The Financial Times.
Parts of the deal have already been challenged by politicians and lawyers. UBS executives had hoped to complete the deal by the start of June.
UBS REACHES AGREEMENT TO BUY CREDIT SUISSE AFTER UPPING OFFER
UBS is considering delaying its quarterly results at least until the end of August, as it deals with complexities over its takeover of Credit Suisse. (FABRICE COFFRINI/AFP via Getty Images) / Getty Images)
Among the complex issues UBS is facing is combining the two banks’ accounting systems, which each follow different standards.
UBS follows the International Financial Reporting Standards, while Credit Suisse uses the Generally Accepted Accounting Principles, which are more common among U.S. companies.
UBS’s original merger plan has caused alarm within Switzerland due to fears over branch closures and job cuts.
FOX Business has reached out to UBS for comment.
Swiss bank UBS CEO Sergio Ermotti (R) attends a news conference to present the companys results of the first quarter in Zurich. (REUTERS/Arnd Wiegmann / Reuters Photos)
UBS BRINGS BACK PAST CEO WITH CREDIT SUISSE DEAL AHEAD
UBS decided in March to bring back former CEO Sergio Ermotti to lead the Swiss bank as it moves forward with the take-over of Credit Suisse.
Ermotti was the bank's top executive for nine years and led a turnaround following the 2008 global financial crisis.
Ermotti has insisted that Swiss taxpayers are "exceptionally unlikely" to suffer losses on the takeover.
The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland. (Reuters/Arnd Wiegmann / Reuters Photos)
CREDIT SUISSE EXECS ADDRESS UBS TAKEOVER
The $3.25 billion deal for Credit Suisse was quickly put together as two U.S. banks collapsed and jitters about long-running troubles at Credit Suisse led shares of the bank to tank and customers to pull out their money.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBS | UBS GROUP AG | 31.84 | +0.23 | +0.74% |
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Swiss authorities urged UBS to take over its smaller rival after the central bank’s plan to let Credit Suisse borrow $54 billion did not reassure investors and customers.