UBS, Swiss Government Sign Loss Protection Agreement
June 09 2023 - 04:40AM
Dow Jones News
By Pierre Bertrand
UBS Group said on Friday that it has signed a loss protection
agreement with the Swiss government effective from the completion
of the bank's acquisition of peer Credit Suisse.
The bank said that the agreement reflects the terms of the
guarantee determined by the Swiss Confederation on March 19.
UBS will bear the first 5 billion Swiss francs ($5.56 billion)
of potential losses realized on a designated portfolio of Credit
Suisse non-core assets, while the Swiss government will cover the
next CHF9 billion of potential losses, the bank said.
UBS said it intends to "manage these assets in a prudent and
diligent manner and intends to minimize any losses and maximize
value."
UBS added that it will also cover the initial and ongoing
external costs incurred by the government and the Swiss Financial
Market Supervisory Authority for the loss protection agreement.
UBS said that it expects to close its purchase of Credit Suisse
as early as Monday.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
June 09, 2023 04:25 ET (08:25 GMT)
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