Ending the government support mechanisms is an important milestone for UBS. The step which came earlier than expected, is intended to express confidence the Credit Suisse takeover can be achieved on its own.
The end of the guarantees and the repayment of the liquidity support has been highlighted by UBS management to its employees as a success.
UBS announced today that all extraordinary liquidity support created under emergency law has been repaid. «This underscores the strength of UBS as well as the competence that the employees of both banks have demonstrated in recent months,» according to an internal letter from Chairman Colm Kelleher and CEO Sergio Ermotti to employees, obtained by finews.com.
«It should be clear to all of us that we still have a lot of work to do to realize the full potential value of this transaction. We have to win this trophy first, we won't be given it as a gift. Creating a new, even stronger UBS and integrating Credit Suisse requires a lot of dedication, commitment, and diligence,» the bank's two top managers emphasized.
«Many more milestones await us. We will be able to provide information on some of them on August 31 as part of the second quarter results,» the letter continues.
Many Open Issues
The list of open issues is long, even though several personnel decisions have already been made in the rank of senior management and investment banking. What will happen to Credit Suisse Switzerland? Will it have a future as an independent unit or will it be absorbed by UBS? How big will the job cuts be in this country and also globally? Will the employees of the crisis bank Credit Suisse have prospects in the new bank? The list goes on.
But one thing is certain: Answers to all open questions still won't be available at the end of August.
