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UBS played a pivotal role in the controversial write-off of $17 billion in Credit Suisse's AT1 bonds during its takeover negotiations, a move that significantly benefited UBS financially. Despite claims of ignorance from UBS Chairman Colm Kelleher, investigations reveal that UBS initiated the discussion on the bond wipe-out, which was crucial for the merger's success. This decision has led to global lawsuits from investors and potential financial repercussions for Swiss taxpayers.
UBS's recent discussions revealed a pivotal strategy involving the write-off of $17 billion in Credit Suisse's AT1 bonds, a move that significantly influenced the merger's terms. This decision, initially kept secret, allowed UBS to secure extraordinary profits, contributing nearly $30 billion in 2023. The PUK report highlights that UBS's demands were crucial for the takeover's success, overshadowing the purchase price negotiations.
The Federal Council is set to address identified weaknesses in the UBS-CS committee report. Key measures include the use of accurate geolocation data, active scanning of device characteristics for identification, and the storage or access of device information to enhance service development and audience research.
The Raiffeisen Pension Fund is facing criticism for offering a mere 2 percent interest rate on retirement savings, significantly lower than competitors like UBS and Migros Bank, which provide 9 percent and 7.5 percent, respectively. The fund's weak performance is attributed to its target interest rate and coverage ratio policies. Following this turmoil, CEO Heinz Huber is set to leave, with no clear internal successor in sight.
UBS employees will receive a remarkable 9% interest on their pension funds for 2024, a stark contrast to the 5% offered to former Credit Suisse employees. Despite the merger of the two banks, their pension funds remain separate, with UBS showcasing stronger financial performance and investment returns. The disparity in interest rates highlights the ongoing challenges and differences within the merged entity.
UBS employees are set to receive a remarkable 9% interest on their pension fund assets for 2024, a significant boost following the Swiss National Bank's recent rate cut to 0.5%. In contrast, Credit Suisse employees will see a much lower rate of 5%, leading to dissatisfaction among CS staff. This disparity highlights the contrasting fortunes within the banking sector.
Renato Costantini, a UBS Managing Director, balances a demanding workload with pursuing a Bachelor's degree in kindergarten and lower school education at Zurich University of Teacher Education. Despite his 150% workload from key roles in Wealth Management and legal integration, UBS supports his professional development, emphasizing performance over presence.
Baloise is restructuring its Board of Directors amid pressure from activist investor Cevian, with two members departing and three new members joining, including Belgian Vincent Vandendael, who brings extensive international experience in insurance and reinsurance. The changes aim to enhance the board's expertise in insurance technology and underwriting.
Cevian, an activist investor and former CEO of CS Switzerland, is set to join the Board of Directors at Baloise. Previously, he criticized the company's strategy as inadequate, stating that for Baloise to achieve its potential as a leading Swiss insurance firm, it requires genuine focus and ambition, which he felt was lacking.
Switzerland's deposit protection scheme, officially guaranteeing up to 100,000 francs, was severely underfunded, with only 6 billion francs available. Despite multiple warnings about the risks posed by major banks, regulatory measures were weakened, leading to a crisis where Credit Suisse faced a bank run, necessitating a 250 billion franc government and SNB intervention for its takeover by UBS.
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