Anyone who thought the formal takeover of Credit Suisse would be a leisurely walk in the park did not reckon with UBS CEO Sergio Ermotti's determination.

The truth is that Ermotti is fulfilling a professional dream by taking over Credit Suisse. During his first stint as CEO of UBS, he maintained that he wanted to handle a transaction of a similar magnitude, although it was something that ended up eluding him. Until now. With UBS's forced takeover of Credit Suisse, he is finally getting his chance.

Fast, But Not Rushed

During an appearance at the industry trade fair Finanz '23 on Wednesday, Ermotti said the formal takeover of Credit Suisse is expected to be completed as early as the end of this month – or the beginning of June. While UBS will «act quickly», it is «not in a hurry,» the news agency «AWP» quoted Ermotti as saying. And until the transaction is completed, communication will be limited. 

While he perhaps maintains he is not in any haste about things, Ermotti is nevertheless pushing the pace, even though it is already at breakneck speed in the view of some observers. In addition to obtaining the approval of foreign regulators, there is also the matter of keeping a precise record of everything being bought from Credit Suisse. He reemphasized that UBS is keeping all options open on the takeover.

Are Losses Unlikely?

It is known that UBS is primarily interested in the wealth and asset management businesses and wants to wind up CS's financial market trading operation. It also intends to keep functioning in the Swiss market with two brands, at least for now. Digital head Mike Dargan from UBS and Credit Suisse's operational head Francesca McDonagh are said to be in charge of implementing the merger. Given that, both are likely finding little sleep at the moment.

Ermotti presented a picture of a highly confident chief executive to his audience. He said UBS would do everything to ensure that taxpayers do not have to bear any costs from the takeover. Moreover, he believed it extremely unlikely that the Swiss government and Swiss National Bank would sustain any losses from the provision of emergency liquidity lending facilities as a result of the Credit Suisse rescue.