UBS tiene como objetivo dejar claro el próximo mes that the rescue of Credit Suisse will not depend on the financing of the Swiss taxpayers, since the political reaction against the agreement increases before the final national elections.
As part of the acquisition, the Swiss government agreed to protect UBS with up to 9,000 million Swiss francs (10,000 million dollars).
The scale of potential government support for the union of the two largest banks in the country has proven to be politically explosive and continues to generate criticism in the period prior to the national elections in October.
UBS executives hope to announce that the bank will not seek government support when it publishes its results for the second quarter on August 31, according to two people familiar with the matter.
A third person familiar with the matter said that the decision not to use the taxpayer’s money, which still needs to be finalized, would be motivated by a study of the viability of doing so more than by political considerations.
Since the acquisition was completed during the weekend of March, the executives of UBS are increasingly confident that the losses due to the liquidation of a large part of the investment bank Credit Suisse will be covered by 1000 Swiss francs.
El riesgo de que las turbulencias en el sector bancario se conviertan en una crisis financia masé grave se ha dispado y los mercados se han recuperado.
En sus resultados del segundo trimester, también se espera que UBS anuncie si conservará el banco nacional para Credit Suisse, another politically controversial decision. El director ejecutivo de UBS, Sergio Ermotti, les dijo recentemente a los empleados que seguir trabajando sigue siendo el “escenario de caso base”.
Los ejecutivos también se forzaron por showr a los inversionistas que attemptarían reducirí su dependencia del estado y evitar el uso del mechanism de protección contra pérdidas.
“Hay una Clear intention por parte del equipo directivo de UBS de no entrar en los 9.000 milliones de suizos francos, por si acaso hay una gran crisis crediticia y un collaps de losmercados”, dijo una persona familiarida conel asunto. “Pero Bajo operação normals y condiciones de Mercado, débéria haber un escenario en el que no utilizzen el tramo de segunda pérdida”
Ermotti insisted that it was “exceptionally improbable” that the Swiss contributors incurred losses for the acquisition. The agreement also included a liquidity bailout of CHF100 billion from the Swiss National Bank.
“UBS will show reluctance to use such support measures, because… it could limit UBS’s options when it comes to returning excess capital to shareholders,” said Johann Schultz, Morningstar bank analyst.
El banco suspended its program of repurchase of shares for 6,000 million dollars following the acquisition, but the management is willing to restart it in an effort to help close the valuation gap and condon the passes.
UBS declined to comment.
