UBS's multi-billion state-sponsored takeover of Credit Suisse should proceed smoothly without political obstructions, Swiss Finance Minister Karin Keller-Sutter said in an interview published on Saturday.
should proceed smoothly without political obstructions, Swiss Finance Minister Karin Keller-Sutter said in an interview published on Saturday.engineered by the Swiss authorities after Credit Suisse came close to collapse.offered to back the takeover and avoid a financial meltdown the bank's uncontrolled failure could have triggered.
"The guarantee agreement with UBS is still being negotiated. In many committee meetings, I got the impression that politicians definitely don't want to jeopardise the takeover," she added.Completing the merger was the highest priority, the minister said, who defended the government's intervention last month, which critics have said came too late and promised too much taxpayer support for a bank that paid out billions in bonuses to executives.
"Under the circumstances, it was and is the best possible choice, which also places the least burden on the state and the taxpayer," Keller-Sutter said. "UBS will have to hold more equity after the takeover. This will rather force them to shrink," Keller-Sutter said.The risks to the taxpayer were also acceptable - even though the government could assume up to 9 billion francs in losses incurred by UBS by the takeover.
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