The UBS chairman voiced confidence Wednesday that the Swiss bank will succeed in a government-engineered takeover of hobbled rival Credit Suisse, pledging the deal will reduce costs, benefit shareholders and buttress Swiss finance despite "huge" risks in knitting the global lenders together.
Speaking to UBS shareholders, Colm Kelleher gave an overview of the 3 billion Swiss franc (US$3.25 billion) takeover that he said would close in the next few months, alluding to the complexity of the first-ever merger of two "global systemically important banks."
Swiss government officials and regulators hastily orchestrated the deal that was announced on March 19 after Credit Suisse's stock plunged and jittery depositors quickly pulled out their money.
Authorities feared that a teetering Credit Suisse could further roil global financial markets following the collapse of two U.S. banks.
"Whilst we did not initiate these discussions, we believe that this transaction is financially attractive for UBS shareholders," Kelleher said at the annual shareholders meeting in the Swiss city of Basel. "I'm convinced that we made the right choice."
Kelleher said fully integrating the banks is expected to take three to four years and that while UBS is "laser-focused on integrating Credit Suisse," there are possible pitfalls.
"There is a huge amount of risk in integrating these businesses," he said. "But let me assure you, we are doing everything to execute this deal in the best possible way in order not to let it compromise our financial strength or stability."
UBS executives did not face the same outcry that Credit Suisse shareholders unleashed a day earlier at what was likely the 167-year-old bank's last annual general meeting. On Tuesday, Credit Suisse Chairman Axel Lehmann acknowledged the anger and apologized for the failures leading up to the bank's rescue.
The Swiss attorney general's office has opened a probe into events surrounding Credit Suisse ahead of the UBS takeover, and the executive branch on Wednesday ordered tens of millions in cuts to the bonuses of top Credit Suisse executives.
Swiss regulators, meanwhile, said the takeover was "the best option," offering the least risk of fanning a wider crisis and damaging Switzerland's standing as a financial centre.
The merger "minimized risk of contagion and maximized trust," said Urban Angehrn, chief executive of the Swiss Financial Market Supervisory Authority, or FINMA.
Two other solutions -- a takeover by the Swiss government or putting Credit Suisse into insolvency proceedings -- had serious drawbacks, he said Wednesday.
Insolvency would have left the functional parts of Credit Suisse in operation as a Swiss-only bank, but one with a "damaged reputation" through bankruptcy, he told reporters in the Swiss capital of Bern. A temporary takeover by the Swiss government would have exposed taxpayers to the risk of losses.
"One can well imagine what devastating effect the insolvency of a big wealth management bank of Credit Suisse AG would have had on Swiss private banking," Angehrn said. "Many other Swiss banks could have faced a bank run, just as Credit Suisse did itself in the fourth quarter."
The world's biggest banks, including Credit Suisse and UBS, are required to submit emergency plans for winding them up if they fail, emerging from international negotiations aimed at preventing a repeat of the 2008 global financial crisis triggered by the failure of globally connected U.S. investment bank Lehman Brothers.
Triggering such an emergency plan "would have achieved its immediate aim" of preserving payments and supporting the economy in Switzerland, Angehrn said.
"But the damage to Switzerland as a place to do business, to the reputation of Switzerland, to tax revenue and jobs, would have been enormous," he said.
Shareholders did not get to vote on the merger after the Swiss government passed an emergency ordinance to bypass that step.
Kelleher acknowledged that the government-organized deal meant UBS shareholders could not be consulted before the takeover was announced.
"I understand that not all stakeholders of UBS and Credit Suisse are pleased with this approach," he said.
At the meeting, UBS shareholders approved reelection of the board, compensation for executives and a 10 per cent increase to the 2022 dividend, totalling $7.3 billion after the bank recorded a net profit of $7.6 billion last year.
"We have laid the foundation that now puts us in a position to stabilize Credit Suisse for the benefit of both banks and the Swiss financial centre," Kelleher said.
------
McHugh reported from Frankfurt, Germany
The truck driver who caused the horrific bus crash involving the Humboldt Broncos junior hockey team has been ordered to be deported.
Pope Francis paved the way for the canonization of the first saint of the millennial generation on Thursday, attributing a second miracle to a 15-year-old Italian computer whiz who died of leukemia in 2006.
As avian flu spreads south of the border, Canadian officials are now testing samples of milk sold in grocery stores across the country.
Documentary filmmaker Morgan Spurlock, an Oscar-nominee who made food and American diets his life's work, famously eating only at McDonald's for a month to illustrate the dangers of a fast-food diet, has died. He was 53.
A sexually transmitted infection (STI) that was once thought to be a thing of the past is now a public health priority for North American doctors.
It began last month with the arrest of a Russian deputy defense minister. Then the head of the ministry’s personnel directorate was hauled into court. This week, two more senior military officials were detained. All face charges of corruption, which they have denied.
'Quiet vacationing' is the latest new term to describe the rough edges of office culture, and survey data shows it's widespread among North American workers.
Independent Toronto MP Kevin Vuong says he is asking Conservative Leader Pierre Poilievre to let him join the Tory caucus, and intends to seek a nomination for the party in a Greater Toronto Area riding.
A toddler has died after being struck by a recycling truck in a Barrie, Ont. neighbourhood on Thursday afternoon.
Sask. Party member Jeremy Harrison says he will resign as Government House Leader, revealing he brought a gun into the legislative building a decade ago.
A warrant has been issued for 32-year-old Yacine Zouaoui, who went unaccounted for at the minimum security Federal Training Centre.
The Supreme Court of Canada says a man found guilty of sexually assaulting his long-time partner was not entitled to present evidence about sexual activity they engaged in shortly before the offence.
A toddler has died after being struck by a recycling truck in a Barrie, Ont. neighbourhood on Thursday afternoon.
The truck driver who caused the horrific bus crash involving the Humboldt Broncos junior hockey team has been ordered to be deported.
Ontario’s so-called 'Crypto King' Aiden Pleterski has transferred more than half a million dollars on video gaming platforms in a series of transactions made as recently as March, a new bankruptcy report shows.
It began last month with the arrest of a Russian deputy defense minister. Then the head of the ministry’s personnel directorate was hauled into court. This week, two more senior military officials were detained. All face charges of corruption, which they have denied.
Hunter Biden is back in court on Friday for the final hearing before he's expected to stand trial on federal firearms charges in Delaware as his father's reelection campaign unfolds.
U.N. member countries on Friday concluded a new treaty to help ensure that traditional knowledge about genetic resources, like medicines derived from exotic plants in the Andes mountains, is properly traced.
A highly publicized trial in Massachusetts involving a woman accused of striking her Boston police officer boyfriend with her SUV and leaving him for dead in a snowbank is finishing its fourth week on Friday.
Judges at the top United Nations court ordered Israel on Friday to immediately halt its military assault on the southern Gaza city of Rafah, in a landmark emergency ruling on South Africa's case accusing Israel of genocide.
A two-storey building collapsed on the beach in Palma de Mallorca on Thursday, killing at least four people and injuring 16 people in the tourism hot spot in Spain's Balearic Islands, the country's national police said.
Independent Toronto MP Kevin Vuong says he is asking Conservative Leader Pierre Poilievre to let him join the Tory caucus, and intends to seek a nomination for the party in a Greater Toronto Area riding.
Deputy Prime Minister Chrystia Freeland, reacting to the International Criminal Court's order to Israel to halt an assault on Rafah, on Friday said she expected all parties to follow international law.
Sask. Party member Jeremy Harrison says he will resign as Government House Leader, revealing he brought a gun into the legislative building a decade ago.
A sexually transmitted infection (STI) that was once thought to be a thing of the past is now a public health priority for North American doctors.
Despite its rough name, experts say most cases of 'slapped cheek disease' are mild and not a cause for concern.
Ontario patients are now visiting emergency departments out of fear of being de-rostered from their doctor’s office – a loophole that results in hospitals dealing with non-urgent cases, and disrupts continuity of care paramount to family medicine, according to health-care experts.
Boeing is now aiming for its first astronaut launch at the beginning of June, after spending the past few weeks struggling with more problems on the space capsule.
Joining news organizations that have chosen to collaborate rather than fight with the best-known artificial intelligence company, News Corp. has struck a multi-year deal to share news content with OpenAI for both training purposes and to answer questions from users.
The surge in Canada's tick population is linked to recent changes in our climate, according to Mount Allison University biology professor Vett Lloyd.
Documentary filmmaker Morgan Spurlock, an Oscar-nominee who made food and American diets his life's work, famously eating only at McDonald's for a month to illustrate the dangers of a fast-food diet, has died. He was 53.
With Netflix’s “Baby Reindeer” captivating audiences — nearly 60 million viewers watched it in its first month — and the fifth and final season of “You” set to release this year, stories about stalkers have clearly struck people’s attention.
Tennessee's attorney general said Thursday that his office is looking into a company's attempt to sell Elvis Presley's home Graceland at a foreclosure auction, a move that was stopped by a judge after the king of rock n' roll's granddaughter filed a lawsuit claiming fraud.
The federal government is putting another $31 million towards The Bay building project in Downtown Winnipeg.
'Quiet vacationing' is the latest new term to describe the rough edges of office culture, and survey data shows it's widespread among North American workers.
Lynx Air is selling off everything from life jackets to oxygen masks as it tries to recoup a portion of the losses it suffered before filing for creditor protection earlier this year.
In 2023, Disney closed a highly-publicized luxury hotel on the Walt Disney World property called 'Star Wars: Galactic Starcruiser.' Now, a year later, a four-hour-long YouTube deep-dive has resurfaced details about the concept and spread the niche piece of Disney lore to millions of viewers.
The Monaco Grand Prix gets underway this weekend in Monte Carlo with its heady combination of glamor and adrenaline, not only for the tens of thousands who descend on the pristine principality, but for the millions watching across the world.
Sam Butcher, the artist who created the Precious Moments figurines depicting angelic teardrop-eyed children, has died. He was 85.
Kansas City Chiefs star Travis Kelce has spoken about the controversial comments Harrison Butker made at a commencement speech earlier this month, saying he does not agree with 'just about any' of Butker’s views but did 'cherish' him as a teammate.
When a record-breaking crowd fills BC Place on Saturday they won't be seeing superstar Lionel Messi play, according to a statement from the Vancouver Whitecaps.
Connor McDavid tipped Evan Bouchard's shot from the boards past Dallas Stars goalie Jake Oettinger 32 seconds into the second overtime to give the Edmonton Oilers a 3-2 win in Game 1 of the Western Conference Final.
If you’re planning a road trip this summer, it won’t hurt to make sure your car is reliable and would take you there and back.
BMW and Ethiopian-American artist Julie Mehretu unveiled her newest 'Art Car' at the Pompidou Centre in Paris, France.
Interpol says more than 200 stolen Canadian vehicles have been found each week across the globe since February.
The proprietors of Regina's sole discount theatre are aware they're carrying on a significant legacy.
When Jujhar Mann said he wanted to be a pastry chef on a grade school career project, he didn't imagine that pursuing his dream would land him on a popular Netflix baking competition.
A city known for its history, ties to outer space and southern barbecue, is also home to a Winnipeg chef dishing out dozens of perogies.
A Montreal photographer captured the moment a Canada goose defended itself from a fox at the Botanical Garden.
Public libraries in Atlantic Canada are now lending a broader range of items.
Flashes of purple darting across the sky mixed with the serenading sound of songs will be noticed more with spring in full force in Manitoba.
Catching 'em all with impressive speed, a 7-year-old boy from Windsor, Ont. who only started his competitive Pokémon journey seven months ago has already levelled up to compete at a world championship level.
A sanctuary dedicated to animals with disabilities is celebrating the third birthday of one of its most popular residents.
2b Theatre recently moved into the old Video Difference building, seeking to transform it into an artistic hub, meeting space, and temporary housing unit for visiting performers in Halifax.
Advocates for alleged victims of B.C. serial killer Robert Pickton say they remain focused on getting justice for the women, as Pickton lies in a Quebec hospital in a coma after being attacked in prison.
Mounties in North Vancouver are warning residents to be vigilant after noting what they say is a "dramatic increase" in catalytic converter thefts.
“Hello,” Charlie Pickard says after leaning down to knock on a small, colourful door attached to the trunk of a tall tree. “Anybody home?”
Alcohol sales in Ontario will be enhanced in grocery stores and expanded to convenience stores this summer, a year-and-a-half sooner than expected, following a deal that will see the Ontario government provide The Beer Store up to $225 million for the early rollout.
Independent Toronto MP Kevin Vuong says he is asking Conservative Leader Pierre Poilievre to let him join the Tory caucus, and intends to seek a nomination for the party in a Greater Toronto Area riding.
A dream vacation for an Ontario family quickly turned to frustration when a mother’s name on a ticket didn’t match the name on her passport, meaning she was left behind while her husband and two children flew to France.
The family of one of the victims of the Humboldt Broncos bus crash in 2018 says they are 'thankful' for a decision by a Calgary immigration board to deport the driver of the truck involved.
A new Amazon warehouse that opened in Calgary on Friday is the first of its kind.
While city crews remain hard at work patching many Calgary roads, a massive pothole on 16 Avenue N.W. created some very expensive problems for drivers on Thursday.
A 68-year-old Ottawa man is facing animal cruelty charges after a gosling was allegedly stomped to death outside a business in Kanata.
Ottawa police say a pedestrian that was struck by a vehicle in Barrhaven has died from her injuries.
OC Transpo’s annual Transit Job Fair is scheduled to take place on Saturday at the Greenboro Station Park and Ride from 10 a.m. to 2 pm.
A warrant has been issued for 32-year-old Yacine Zouaoui, who went unaccounted for at the minimum security Federal Training Centre.
Friday's warrant for prison inmate Yacine Zouaoui, 32, is the latest in hundreds of reported prison breaks in Quebec. Sometimes, they just walked away; sometimes they went through a fence, and twice they used a helicopter.
The proportion of young Quebecers with an anxiety-depressive disorder has reached a peak, with 8.4 per cent of 15- to 29-year-olds diagnosed in 2021-2022.
The Alberta Aviation Museum says it is about to begin negotiations with the city on the future ownership of Hangar 14.
Rallies are planned in eight cities and towns across Alberta on Saturday to protest the United Conservative Party.
An industrial painting and coating company has been ordered to pay $350,000 after the death of a worker more than two years ago.
The RCMP has completed its investigation into a fatal crash that claimed the lives of four people in Marshfield, P.E.I., last December.
Grammy and Juno-award winning artist Sarah McLachlan will return to her hometown of Halifax this fall during the Canadian leg of her latest tour.
The price of gas increased slightly overnight for Maritime motorists after a few weeks of a downward trend.
A 51-year-old man was fatally shot by RCMP on a Manitoba highway Friday morning.
Hundreds of Manitobans had their personal health information "inappropriately accessed" over an eight-month span Shared Health has learned following an investigation.
As southern Manitoba gear up to receive up to 60 millimetres of rain, some communities have already started to feel the impact of the low-pressure system.
Sask. Party member Jeremy Harrison says he will resign as Government House Leader, revealing he brought a gun into the legislative building a decade ago.
The truck driver who caused the horrific bus crash involving the Humboldt Broncos junior hockey team has been ordered to be deported.
Yorkton Protective Fire Services is asking the public to have some compassion when taking photos and videos during the aftermath of accidents.
Alcohol sales in Ontario will be enhanced in grocery stores and expanded to convenience stores this summer, a year-and-a-half sooner than expected, following a deal that will see the Ontario government provide The Beer Store up to $225 million for the early rollout.
More than two dozen people have been forced from their homes after a fire ravaged an apartment building in Cambridge.
Ontario’s so-called 'Crypto King' Aiden Pleterski has transferred more than half a million dollars on video gaming platforms in a series of transactions made as recently as March, a new bankruptcy report shows.
The truck driver who caused the horrific bus crash involving the Humboldt Broncos junior hockey team has been ordered to be deported.
Sask. Party member Jeremy Harrison says he will resign as Government House Leader, revealing he brought a gun into the legislative building a decade ago.
Saskatoon police are investigating after a 20-year-old man and a 15-year-old girl were stabbed in a city bus Thursday night.
One person is charged with attempt murder and two people have been charged with drug and weapons offences following a shooting early Friday morning in Greater Sudbury.
A 39-year-old in Sault Ste. Marie has been charged with animal cruelty following a disturbing discovery in the city Thursday evening.
A now 134-hectare fire is burning three kilometres north of Cobalt near the east shore of Kerr Lake, the province’s Aviation, Forest Fire and Emergency Services says.
The Liberal government says it is open to adding more medications to the list of drugs covered by its proposed pharmacare program.
A 26-year-old from Woodstock is charged with one count of possession of a weapon for a dangerous purpose one count of fail to comply with probation order.
Volunteers are needed for a London group with a heartfelt mission. It consists of photographers who tastefully capture the final moments of dying newborn infants with their families.
A toddler has died after being struck by a recycling truck in a Barrie, Ont. neighbourhood on Thursday afternoon.
Police have made an arrest nearly two years after a woman was allegedly gunned down in front of her Alliston, Ont. home.
When one is extended an invitation to the Royal Garden Party in London, England, there's undoubtedly no shortage of pomp and circumstance. Barrie, Ont. natives Megan Kirk Chang and her husband Brandon experienced just that as they entered the prestigious event hosted at Buckingham Palace on Tuesday.
Windsor police have issued an arrest warrant for a 23-year-old man who allegedly shot at a vehicle during a dispute on Erie Street East earlier this week.
The search continues Friday after a report of a possible drowning at Sandpoint Beach in Windsor. Emergency responders were called to the scene in the 10000 block of Riverside Drive East.
A Windsor construction company has been fined $80,000 after a workplace injury.
Advocates for alleged victims of B.C. serial killer Robert Pickton say they remain focused on getting justice for the women, as Pickton lies in a Quebec hospital in a coma after being attacked in prison.
“Hello,” Charlie Pickard says after leaning down to knock on a small, colourful door attached to the trunk of a tall tree. “Anybody home?”
Mounties in Nanaimo are investigating a string of thefts from a local cemetery, and are asking the public for help with the case.
One person is dead after a fight in Penticton early Sunday morning, according to authorities.
A suspect is at large after robbing a convenience store at gunpoint in Merritt, B.C., Friday, according to local police.
After four targeted shootings in four days, Mounties in Kamloops are taking the unusual step of warning the public about two men they believe are likely to be targeted in future violent incidents.
People trying to access a variety of online services offered by The City of Lethbridge may run into a digital roadblock this weekend.
The Brooks Bandits were hoping to make a little history Wednesday night.
A Lethbridge man wanted on multiple outstanding warrants turned himself in to police, the LPS announced in a media statement Thursday.
A 39-year-old in Sault Ste. Marie has been charged with animal cruelty following a disturbing discovery in the city Thursday evening.
Tourism officials in Sault Ste. Marie are preparing for a quieter-than-usual cruise ship season.
Three people, including two from Toronto, have been arrested in northern Ontario and Ontario Provincial Police have seized a haul of drugs, weapons and other items.
Canadian soldiers and government officials arrived in northeastern France this week for a historic mission: returning an unknown Newfoundland soldier back home.
79-year-old Madonna Wilkinson has been playing the accordion since she was 15, when she picked one up that had been left behind at one of her parents' rollicking parties in the oceanside town about 25 kilometres north of St. John's, N.L. She has played Sunday masses and St. Patrick's Day parties, and community events of all kinds.
Canada's new $10-a-day child care program is expanding, but there's growing evidence that demand for the program is rising even faster, leaving many parents on the outside looking in.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
