In March this year, UBS, Switzerland’s largest bank, agreed to buy Credit Suisse after the latter bank’s shares slumped amidst a slew of scandals and missteps. UBS paid SFr3 billion ($3.23 billion) for its rival, a move that leaves Switzerland with one universal bank.

Last year, Credit Suisse announced that it would be restructuring its business lines, slashing costs, reducing risk-weighted assets and freeing up capital. However, its shares remained under pressure. In the fourth quarter of 2022, clients pulled out a net SFr110 billion of assets. To add to its woes, the collapse of in the US earlier this year sharpened investor focus on banks perceived as having problems.

As UBS continues its integration of Credit Suisse after its takeover, a number of senior organisational changes have been announced, as reported here and here. As part of the deal, conducted at the urging of the Swiss authorities, holders of Credit Suisse’s Additional Tier 1 bonds – forms of buffer capital created for European banks after the 2008 crash – have had their bonds written down. This has sparked anger and a number of lawsuits, including from institutions such as PIMCO. As reports such as this in May showed, UBS faces a huge task of ensuring that the two organisations integrate while dealing with legacy legal and regulatory issues that have plagued Credit Suisse for years.