Credit Suisse says some clients may want to move wealth assets after UBS deal: memo
CREDIT Suisse told staff its wealth assets are operationally separate from UBS for now, but once they merged clients might want to consider moving some assets to another bank if concentration was a concern, according to an internal memo.
The memo dated on Sunday (Mar 19), seen by Reuters, gave talking points to Credit Suisse staff for client conversations after a historic Swiss-backed acquisition of the troubled bank by UBS.
In a package orchestrated by Swiss regulators on Sunday, UBS will pay three billion Swiss francs (S$4.33 billion) for 167-year-old Credit Suisse and assume up to US$5.4 billion in losses.
UBS will become the undisputed global leader in managing money for the wealthy through the takeover of its main rival, triggering some concerns about concentration risks for clients.
Credit Suisse also told staff to inform clients that plans for its investment banking business will be communicated in due course as details of its acquisition by UBS were still being worked out, according to an internal memo.
“We do not expect there to be any disruption to client services. We are fully focused on ensuring a smooth transition and seamless experience for our valued clients and customers,” a Credit Suisse spokesperson said.
Credit Suisse is also going ahead with its annual Asia Investment Conference in Hong Kong, starting on Mar 21, the spokesperson said, in response to Reuters’ request for comment on the internal memo. REUTERS
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