UBS faces $17 billion loss from rushed Credit Suisse takeover.
TL;DR
UBS estimates a financial hit of about $17 billion from the takeover of Credit Suisse, including $13 billion from fair value adjustments and $4 billion in potential litigation and regulatory costs. However, UBS also estimated it would book a one-off gain of $34.8 billion by buying Credit Suisse for a fraction of its book value. The financial cushion will help absorb potential losses and could result in a boost to the lender’s second-quarter profit if UBS closes the transaction next month as planned. The integration process could take three to four years.
- UBS flags $17 billion hit from Credit Suisse takeover New York Post
- UBS expects $17 billion hit from Credit Suisse rescue, flags hasty due diligence CNBC
- UBS says it was rushed into unwanted Credit Suisse rescue merger Reuters
- UBS's Sweet Deal for Credit Suisse Is Looking Even Sweeter Bloomberg
- When 'Negative Goodwill' Is a Big Positive The Wall Street Journal
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