UBS Rides Government Support to Staggering $35B Profit in Credit Suisse Takeover
UBS, a prominent banking institution, is set to secure substantial profits amounting to nearly $35 billion with the Swiss government's assistance in acquiring the struggling remnants of Credit Suisse.
According to a Bloomberg report, UBS is poised to earn $34.8 billion from the takeover of Credit Suisse, a move prompted by the latter’s recent downfall amidst the global weakening of the banking sector.
Bloomberg reveals that UBS is presently engaged in conducting a thorough assessment of Credit Suisse and aims to finalize the deal in the upcoming weeks.
During its investigation, UBS has reportedly unearthed a number of troubling and embarrassing revelations concerning Credit Suisse.
These include a criminal conviction for enabling the money laundering activities of a Bulgarian cocaine trafficker and a substantial settlement of half a billion dollars in connection with a bribery scandal involving a tuna fishing fleet in Mozambique.
Throughout its existence, Credit Suisse has faced allegations of tax fraud, subprime mortgage fraud, and links to illicit drug trade and money laundering.
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These recent revelations regarding Credit Suisse’s true nature have allegedly reinforced the cautious stance held by analysts Thomas Hallett and Andrew Stimpson from Keefe, Bruyette & Woods towards UBS.
They suggest that investors would be wise to remain on the sidelines until there is improved visibility and resolution of the various uncertainties and potential risks.
The shares of Credit Suisse (CS), previously valued at around $80, have plummeted to under one dollar at the time of writing.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
