The chairmen of UBS Group and Credit Suisse Group were exploring a potential merger to create one of Europe’s largest banks, wrote Inside Paradeplatz, citing unidentified people inside the two lenders.
The project, nicknamed Signal, is being driven by UBS Chairman Axel Weber, who is working on it with his counterpart at Credit Suisse, Urs Rohner, the Swiss finance blog said. Weber has discussed the idea with Swiss Finance Minister Ueli Maurer and an agreement could happen by early next year, according to the report.
A merger could result in job cuts equal to between 10% and 20% of the workforce, or 15,000 or more worldwide, according to the report. Banking regulator FINMA had been informed of the deliberations, Inside Paradeplatz said.
Spokespeople for the two banks declined to comment to Bloomberg.
“Necessity is the key to fusionism,” one market observer said on the speculation.
Europe’s banking industry is under pressure to consolidate as the coronavirus pandemic adds to headwinds from negative interest rates.
Shares in Credit Suisse had gained 4.4% and UBS 2.5% by 5pm on Monday. However, both shares have so far this year been down 23% and 7% respectively.
The Swiss Market IndexExternal link (SMI) is Switzerland’s blue-chip stock market index and comprises 20 of the largest and most-liquid large- and mid-cap stocks of the Swiss Performance Index (SPI), a collection of all securities traded on the Zurich-based SIX Swiss Exchange from companies based in Switzerland.
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The only alternative to the UN Palestinian agency’s work in Gaza is to allow Israel to run services there, Philippe Lazzarini, UNRWA Commissioner-General, told reporters in Geneva on Monday.
Study reveals food culture differences between Switzerland and neighbours
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Three-quarters of Swiss people consider eating to be a pleasurable, social activity, a new survey reveals. Healthy eating, however, plays a much less important role, it found.
Precious archaeological vases and coins returned to Italian museum
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The Italian authorities have recovered over 2,500 precious ancient coins, vases and small sculptures that had been illegally dug up and sold in Switzerland, Eurojust announced on Monday.
PrimeEnergy Cleantech declared bankrupt by Swiss authorities
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PrimeEnergy Cleantech has been officially declared bankrupt, the Swiss Official Gazette of Commerce (SOGC) reported on Monday.
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The consumption of antibiotics has risen in Switzerland since the Covid-19 pandemic. However, compared to other European countries the Alpine country has one of the lowest levels of antibiotic usage.
Swiss financial watchdog foresees greater uncertainty due to geopolitics
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The Swiss financial sector will face greater uncertainty due to the numerous geopolitical conflicts around the world, warns the Swiss Financial Market Supervisory Authority (FINMA).
Swiss museums to mark centenary of death of painter Félix Vallotton
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Swiss museums will celebrate the centenary of the death of the artist Félix Vallotton (1865-1925) next year. A major retrospective is planned in Lausanne, his birthplace, in autumn.
Russian mission installs more ‘spy’ antennas in Geneva, Swiss TV report claims
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Russian spies are strengthening their presence in Geneva, according to a report by Swiss public television, RTS. Russian officials have placed new satellite dishes on their diplomatic buildings without authorisation.
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Switzerland should join NATO, as in the future it cannot rely on its long-standing tradition of neutrality for its defence, John Bolton, Donald Trump's former national security adviser, declared in an interview on Sunday.
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A demonstration was held in Geneva on Sunday calling for an immediate end to the war in Ukraine. Around 50 Russians took part in the gathering outside the UN building.
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While volatile markets have benefited many financial companies so far during the pandemic, some players still fear a coronavirus backlash.
Swiss banks exceed expectations in weathering coronavirus crisis
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The Swiss bank boasted its best second quarter results in a decade despite uncertainty surrounding the coronavirus pandemic.
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