The Swiss government has banned Credit Suisse from paying deferred bonuses granted to employees before last year to avoid public backlash.

(Bloomberg)

[Compilation of Lu Yongshan/Comprehensive Report] After UBS acquired Credit Suisse for 3 billion Swiss francs (approximately 3.25 billion US dollars), there are still many problems to deal with.

The Swiss government, which provided a lot of liquidity to support the deal, has banned Credit Suisse from paying deferred bonuses granted to employees before last year to avoid public backlash; Former Credit Suisse director Michael Klein on the deal started negotiations.

In order to support UBS’s acquisition of Credit Suisse, the Swiss National Bank will provide 100 billion Swiss francs of liquidity, and the Swiss government will provide 9 billion Swiss francs as a guarantee for possible losses after UBS’s acquisition of Credit Suisse.

The Swiss Federal Council has ordered Credit Suisse not to pay deferred bonuses granted to staff before last year, but allowed the bank to pay last year's bonuses based on legal certainty to avoid shocks to staff not responsible for the crisis; The committee also asked the Swiss finance ministry to draw up plans to control the payment of future bonuses to Credit Suisse employees.

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People dissatisfied with the Swiss government's tax money to support the merger, demonstrated outside the headquarters of Credit Suisse in Zurich on Monday. upper limit.

In addition, Credit Suisse last year reached an agreement with Klein to spin off investment banking unit CS First Boston (CS First Boston). However, UBS executives believe that the agreement is too biased towards Klein, and believes that after the acquisition of Credit Suisse, there is some value in retaining some of Credit Suisse's investment banking business. Cost terminates the agreement with Klein.

Separately, Wall Street banking executives and U.S. officials are still discussing how to rescue First Republic Bank (FRC), and they are seeking the possibility of government support to make the bank more attractive to potential investors, including the government's divestiture of FRC's Non-performing assets, providing the bank with liability protection, more flexible application of capital rules, or relaxing restrictions on ownership shares; FRC rose sharply after the opening on Wednesday.

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