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UBS's latest "Line Manager Effectiveness Survey" has yielded positive results, with CEO Sergio Ermotti affirming the strong performance of department heads, despite some criticism. Head of HR Stefan Seiler, who has recently ascended in his career, is pivotal in managing the bank's workforce and addressing equity demands from regulators. As president of the Swiss Finance Institute, he will play a key role in upcoming discussions on banking regulation and capital requirements.
UBS has become an investor in the neo-bank Radicant, although the investment is not direct. This stake arises from UBS's merger with FinTech Numarics, highlighting the bank's strategic move into the digital banking sector.
A legal dispute involving eight former Credit Suisse creditors against Switzerland is expected to extend until at least February 2025, as they seek around CHF 80 million in damages. The plaintiffs argue that the Financial Market Authority's decision to write off CS's AT1 bonds was unlawful. Switzerland is represented in the New York federal court by William Savitt, a prominent trial lawyer known for his expertise in complex commercial litigation.
A U.S. lawsuit involving eight former creditors of Credit Suisse is set to extend into next year, with an initial ruling not expected until February. The plaintiffs are seeking around 80 million Swiss francs, claiming that the Swiss Financial Market Supervisory Authority's decision to declare their AT1 bonds worthless violated property rights. The case, filed in June 2024, is part of a broader legal challenge against the Swiss government regarding the handling of these bonds during CS's collapse in March 2023.
FINMA has instructed UBS to enhance its resolution planning to provide more options for action in the event of potential insolvency. This directive aims to strengthen the bank's preparedness and response strategies in financial distress situations.
Radicant and Numarics are merging to create a new neo-bank, retaining the Radicant name and relocating to Liestal. The merger aims to integrate financial services and digital solutions for private and SME clients, with Radicant's CEO Anton Stadelmann leading the new entity. UBS and several venture capital firms are investing in the combined company, which will have a workforce of 240 and a focus on a comprehensive banking and administration platform.
Glarner Kantonalbank (GLKB) shares have shown resilience, trading at EUR 23.85 with a 1.49% increase on October 17, 2024, and a 4.45% rise over the past month. Despite a year-on-year decline of 3.83%, the current price is 53.88% above the 52-week low. The bank plans to distribute a dividend of EUR 1.10 per share, yielding 5.09%, making it an attractive option for income-focused investors.
Radicant, a subsidiary of Basellandschaftliche Kantonalbank (BLKB), is merging with fintech Numarics to enhance its offerings for SMEs and private customers. The merger, pending approval from the Swiss Financial Market Supervisory Authority, aims to create a comprehensive banking and financial platform, with Radicant's CEO Anton Stadelmann leading the new entity based in Liestal.
UBS has assigned a "buy" rating to EssilorLuxottica with a target price of 232 euros following the eyewear group's quarterly sales figures. Analyst Robert Krankowski noted that the disappointing results raise concerns about the anticipated margin increase in the second half of the year.
UBS's market power following its acquisition of Credit Suisse is under scrutiny, with authorities including the Price Supervisor, Finma, and the Competition Commission (Comco) recently discussing public complaints and market observations. A report indicated UBS may hold a dominant position in certain markets, yet Finma did not impose competition law conditions on the merger.
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