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UBS has been directed by FINMA to revise its emergency plans, expanding options for potential insolvency scenarios amid ongoing debates about the bank's size in Switzerland. The integration of Credit Suisse necessitates adjustments to ensure effective restructuring and potential market exit strategies. Additionally, legal frameworks must be adapted to enhance resolution options and ensure legal certainty during crises.
UBS has raised its price target for Accelleron from CHF 47 to CHF 51.80, maintaining a "buy" rating. The analyst anticipates that Accelleron will secure a leading position in the turbocharger market for ships, driven by positive global demand for shipping capacities.
UBS is required to revise its emergency and stabilization plans following the takeover of Credit Suisse, as integration has created challenges in assessing UBS's restructuring capabilities. The Financial Market Authority (Finma) has suspended the annual approval of these plans, emphasizing the need for additional options, including market exit strategies, to ensure systemic stability without taxpayer support. UBS, which has a loss-absorbing capacity of around $200 billion, is working on enhancing its resolution planning to meet the special requirements for crisis prevention as a global systemically important bank.
Finma has suspended UBS's annual approval of stabilization and emergency plans, citing the need for adjustments following the Credit Suisse takeover. The authority requires UBS to standardize its structures and processes for potential recapitalization and liquidation, emphasizing the necessity of preparing for a market exit without taxpayer support. Given the current landscape, a foreign bank would likely need to intervene in a crisis, raising concerns about the feasibility of such a cross-border rescue.
The Swiss financial regulator has mandated UBS to enhance its emergency and recovery plans following its acquisition of Credit Suisse, which collapsed last year. Finma has suspended UBS's annual resolution strategy approval, emphasizing the need for improved crisis preparations and options for action to ensure stability without taxpayer support. The regulator is also focusing on liquidity management and the impact of social media on bank outflows, reflecting lessons learned from the Credit Suisse crisis.
The Swiss stock exchange regulator, Finma, has urged UBS to enhance its contingency plans following the Credit Suisse crisis, which revealed the need for improved crisis preparedness among systemically important banks. UBS has begun refining its plans to ensure uninterrupted operations and better liquidity management in case of insolvency risks. The regulator emphasized the importance of robust liquidity measures to address rapid deposit withdrawals, a key issue highlighted by the recent banking turmoil.
UBS is required by the Swiss Financial Market Supervisory Authority (Finma) to revise its emergency restructuring plans following the integration of Credit Suisse. The bank must expand its options for insolvency, including the potential sale or shutdown of individual businesses, as the current strategy only allows for reorganization. As a globally systemically important institution, UBS must ensure its stabilization and emergency plans are robust and effective in crisis prevention.
UBS Group AG is required to revise its emergency recovery and resolution plans to incorporate the integration of Credit Suisse, as mandated by Swiss financial supervisor Finma. The regulator emphasized the need for enhanced liquidity planning and crisis preparedness, particularly in light of the rapid client fund withdrawals experienced during Credit Suisse's collapse. UBS has acknowledged the need for these adjustments and is already working on them, asserting its compliance with current resolution requirements.
On October 17, 2024, RTS announced 19 layoffs as part of its 2025 savings plan. In other news, former One Direction frontman Liam Payne tragically died at 31 after falling from a hotel. Additionally, Switzerland will provide three demining vehicles to Ukraine, and UBS has been instructed by FINMA to revise its contingency plans following the Credit Suisse crisis.
Finma has mandated UBS to revise its stabilization and contingency plans following its acquisition of Credit Suisse, highlighting the need for improved liquidation strategies. While UBS maintains a strong loss-absorption capacity, it must enhance its liquidity planning and response measures to better address potential crises. The bank has already initiated this development process.
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