Ryan Payne, President of Payne Capital Management, and Adam Johnson, Portfolio Manager at Bullseye American Ingenuity Fund, discuss the prospects for a recession, Sergio Ermotti’s return as UBS CEO and the markets.
UBS could reportedly decide to delay its quarterly results as it works to acquire Credit Suisse.
The bank is expected to release its results on July 25.
Due to the financial and political complexity of the Credit Suisse acquisition, results could be delayed until late August, according to The Financial Times.
Parts of the deal have already been contested by politicians and lawyers. UBS executives had hoped to close the deal by early June.
UBS reaches agreement to buy Credit Suisse after bid increase
UBS is considering delaying its quarterly results until at least the end of August as it grapples with the complexities of its Credit Suisse acquisition. (FABRICE COFFRINI/AFP via Getty Images) / Getty Images)
One of the complex issues UBS faces is the combination of the two banks’ accounting systems, each of which follows different standards.
UBS follows the International Financial Reporting Standards, while Credit Suisse uses the generally accepted accounting principles more commonly found among US companies.
The original UBS merger plan caused an uproar in Switzerland over fears of branch closures and job cuts.
FOX Business has reached out to UBS for comment.
Sergio Ermotti (R), CEO of Swiss bank UBS, attends a news conference to present the company’s first quarter results in Zurich. (Portal/Arnd Wiegmann / Portal photos)
UBS brings back former CEO as deal with Credit Suisse looms
UBS decided in March to bring back former CEO Sergio Ermotti to lead the Swiss bank in its takeover of Credit Suisse.
Ermotti was the bank’s top manager for nine years and initiated the turnaround after the 2008 global financial crisis.
Ermotti emphasized that it was “extremely unlikely” for the Swiss taxpayer to suffer any losses as a result of the takeover.
The Swiss bank Credit Suisse logo can be seen at their headquarters in Zurich, Switzerland. (Portal/Arnd Wiegmann / Portal photos)
CREDIT SUISSE executives address UBS acquisition
The $3.25 billion deal for Credit Suisse was quickly clinched when two U.S. banks collapsed and jitters over long-running problems at Credit Suisse caused the bank’s shares to plummet and customers to withdraw their money.
| ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBS | UBS GROUP AG | 19.97 | +0.45 | +2.31% |
GET FOX BUSINESS ON THE GO by CLICK HERE
Swiss authorities have been urging UBS to acquire its smaller competitor after the central bank’s plan to lend $54 billion to Credit Suisse failed to reassure investors and customers.