Switzerland's largest bank apparently stumbles into areas of concern as it combs through its rescued brethren's business lending activity.
Bankers at UBS currently tasked with reviewing loans at Credit Suisse in the wake of the forced rescue action in March are ostensibly seeing some lending relationships that are prompting concerns, Bloomberg news reported overnight on Thursday (paywall). According to the news agency, the bank is currently deciding which assets should be re-booked at a wind-down unit.
The lending relationships prompting concerns are ostensibly in higher-risk markets such as Indonesia, Vietnam, Malaysia, and India, and these assets could either be run off or disposed of. The news agency cited people familiar with the matter in its report.
Distressed Condition
According to Bloomberg, citing one individual familiar with the matter, UBS is focusing on past Credit Suisse business processes, with some of the lending ostensibly already distressed.
Given that, the bank is considering a number of options to remediate the situation and this could involve a sale of a portion of the credit book in Asia to third parties, including private debt firms. It may also attempt to unwind the loans themselves, although no decision has yet been made.
The news agency said that both banks declined to comment on the situation.
