The acquisition of Credit Suisse’s subsidiaries in the US by UBS has been approved by the Federal Reserve.
The Federal Reserve's board of governors has approved UBS's acquisition of Credit Suisse’s subsidiaries, according to a statement.
«The board also has determined to permit UBS to maintain two US intermediate holding companies for a period of one year after the date that UBS acquires control of [Credit Suisse Holdings (USA), Inc.],» the statement said.
«After one year, UBS must have only one US intermediate holding company or receive additional approval for an alternative organizational structure.»
Implementation Plans
UBS has also committed to providing the Fed with an implementation plan for combining the two Swiss bank’s businesses and operations in the country within three months of the consummation of the merger. This includes more stringent requirements such as tightened liquidity standards due to the increased size of the bank.
Beginning in the first quarter, UBS will provide at least quarterly updates on the plan to the staff of the board and the Federal Reserve Bank of New York.
In March, UBS agreed to acquire 167-year old Credit Suisse for 3 billion Swiss francs ($3.3 billion) in a Swiss-brokered rescue deal.
