Swiss financial regulator Finma welcomed the completion of the UBS acquistion of Credit Suisse saying that it brought “clarity and stability” to the banking industry.
UBS agreed on March 19 to buy the firm in a $3.25 billion deal after the collapse of Silicon Valley Bank led to a huge drop in customer confidence.
The deal was backed by 200 billion Swiss francs in liquidity support from the Swiss central bank.
The bank will now seek to reduce the risks of the former Credit Suisse investment bank, which Finma has welcomed.
The deal has also created one of the largest asset managers in Europe, as the new group’s asset management arm will oversee $1.6 trillion in assets.
In April, Swiss authorities issued a statement confirming the deal was under investigation to “identify any crimes”. Finma – the Swiss Financial Markets Supervisory Authority – and other Swiss authorities have been in intensive contact with their foreign partner authorities in recent weeks.
These foreign supervisory authorities, as well as other competent authorities, have also recognised the acquisition.
Finma – which first approved the deal back in March – will now devote the teams and resources previously available for UBS and Credit Suisse to the “intensive supervision” of the merged banks.
With the completion of the acquisition, UBS assumes all Credit Suisse assets and liabilities.
Finma CEO Urban Angehrn said: “The legal consummation of the merger is a milestone. It creates clarity and stability for the banks involved, their clients and the Swiss banking centre.”
He added: “In fact, this successfully prevented serious damage to the Swiss and international financial markets. It is in the interests of all stakeholders that the merger is completed today and the bank can fully focus on the tasks ahead. For Finma, the phase of intensive supervision will definitely continue.”
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