UBS is now applying its «culture filter» to Credit Suisse's lending business in Asia. In the process, high-risk positions are to be screened out.
UBS is said to be planning on winding down or selling the majority of the credit business of Credit Suisse in Asia related to complex and high-risk structured loans according to a «Bloomberg» (behind paywall) report citing people familiar with the matter.
These riskier assets would be placed into a «non-core unit,» in which businesses are bundled, which UBS wants to separate. However, Lombard loans granted against appropriate liquid collateral will be retained.
Ending Undesirable Practices
Following the Credit Suisse takeover, UBS announced it wants to anchor its corporate culture throughout the combined organization, and with few exceptions, the investment bank is to be downsized. A «culture filter» is to ensure that undesirable practices are ended.
UBS will present its second-quarter results on August 31 and it's expected further details of the organization's future organization will also be announced.
