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UBS Asset Management’s Kevin Zhao plans to buy US Treasuries during the holiday season, anticipating that President-elect Trump’s policies will negatively impact economic growth. Despite a market trend of selling off Treasuries, Zhao believes yields will rise to 4.6% before year-end, and he is adjusting his strategy to capitalize on potential market volatility. He argues that the benefits of tax cuts are being overestimated and may not materialize until 2026.
Standard & Poor's has confirmed Raiffeisen's long-term and short-term credit ratings at "AA-" and "A-1+", respectively, highlighting the bank's excellent capitalization and solid credit quality. With a 17.9% market share in the Swiss mortgage sector, Raiffeisen reported a profit of CHF 641.6 million in the first half of 2024 and anticipates solid business development for the year, though results may not match the previous year's extraordinary levels.
UBS Group AG is contemplating job cuts in France due to a declining economic outlook and the integration of Credit Suisse. A company spokesman indicated that the restructuring is a response to the less favorable market environment, though the specific number of potential cuts remains unspecified.
UBS Group AG is contemplating job cuts in France due to a declining economic outlook and the integration of Credit Suisse. A company spokesman indicated that the restructuring is a response to the less favorable market environment, though the specific number of potential cuts remains unspecified.
The Swiss parliament's commission of inquiry has released a 600-page report detailing the mismanagement that led to Credit Suisse's near-collapse and subsequent sale to UBS on March 19, 2023. The report criticizes the implementation of too-big-to-fail legislation and highlights institutional deficiencies in financial market supervision, offering 20 recommendations for improvement. This investigation underscores the ongoing concerns surrounding the banking sector's stability in Switzerland.
The Greens and Socialist Party have raised concerns over the risks posed by UBS following the Credit Suisse debacle, urging faster implementation of "too big to fail" legislation. They criticized UBS's management for excessive bonuses amid significant losses and called for stricter regulations. Meanwhile, the Federal Council and financial authorities are urged to enhance supervision to prevent future banking crises.
The Swiss parliamentary commission's investigation into the Credit Suisse debacle reveals that lobby influence has hindered higher equity allocations, raising concerns about the stability of large banks essential to the Swiss economy. The report emphasizes the risks posed by insufficient capitalization relative to the banks' operational risks, echoing lessons learned since the UBS bailout in 2008. As Switzerland grapples with the implications of these findings, the need for robust financial oversight becomes increasingly critical.
Law professor Peter V. Kunz criticizes the Parliamentary Investigation Commission's (PUK) report on the Credit Suisse crisis, stating it failed to provide meaningful insights or solutions after 1.5 years of investigation. He argues that the report's 20 recommendations are superficial and that political reluctance to hold authorities accountable has delayed necessary reforms, leaving the banking system vulnerable to future crises.
The Parliamentary Commission of Inquiry's report on Credit Suisse's collapse highlights years of mismanagement and calls for stronger regulations for systemically important banks. Reactions from political and business leaders emphasize the need for effective oversight, with some advocating for a "Lex UBS" to manage the risks posed by the newly formed mega-bank. The Federal Council acknowledges the report's findings and plans to incorporate them into future regulatory frameworks.
The PUK report reveals a troubling relationship between Swiss democracy and major banks, highlighting Ueli Maurer's misleading statements about Credit Suisse's stability before its collapse. The report criticizes the lack of accountability for bank executives and calls for reforms to curb political lobbying and enhance regulatory oversight to prevent future crises.
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